SOURCE: StockCall

StockCall

January 26, 2011 08:17 ET

Equity Research on Baxter International Inc. and CareFusion Corporation -- FDA and BLS Announcements Affect Medical Instrument Makers

JOHANNESBURG, SOUTH AFRICA--(Marketwire - January 26, 2011) - www.stockcall.com/ offers investors comprehensive research on the medical instruments & supplies industry and has completed analytical research on Baxter International Inc. (NYSE: BAX) and CareFusion Corporation (NYSE: CFN). Register with us today at www.stockcall.com/ to have free access to these researches. 

Medical device makers were pleased with the recent announcement from the Food and Drug Administration regarding changes to the 510(k) approval program. The FDA outlined 25 steps it plans to take in 2011 to make the approval process easier to predict for equipment makers and investors as well as safety improvements for consumers. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the medical instruments & supplies industry.

www.stockcall.com/ is an online platform where investors doing their due-diligence on the medical instruments & supplies industry can have easy and free access to our analyst research and opinions on Baxter International Inc. and CareFusion Corporation; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html

The FDA changes will make the process more predictable but not necessarily faster. Higher safety standards will also accompany some of the changes. For companies with a strong safety track record like CareFusion Corporation, 510(k) timeline improvements will be welcomed. The company received 510(k) approval on EnView, a new surgical device, at the beginning of last December after applying for approval in August. CareFusion Corporation research report is available for free by signing up now at www.stockcall.com/CFN260111.pdf

Regulatory uncertainty will still have an important effect on revenue for device makers though. Baxter International Inc. recently shut down manufacturing of its dialysis solutions at its facility in Ireland. A contamination was discovered last month and it is currently unclear when production will resume. Baxter International Inc. research report is accessible for free by registering today at www.stockcall.com/BAX26011.pdf

News from the Bureau of Labor Statistics announcing a decline in unemployment by 0.4% to 9.4% in December is also welcome news for device makers. High unemployment has hurt the industry in recent months, as patients were less likely to pay out of pocket for medical devices. As a result, some companies opted for price reductions to make up for declining sales volume. 

Moving forward, improvements to the FDA's 510(k) program will help device makers get products to market along a more predictable timetable. Improved unemployment figures could also help sales volume improve. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

Looking at the earnings schedules for the industry in the coming two weeks, Baxter International will be posting theirs on January 27th, whilst CareFusion will be releasing their readings on February 3rd.

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