SOURCE: The Bedford Report

The Bedford Report

January 18, 2011 11:25 ET

Unemployment Takes Its Toll on These Medical Device Makers

The Bedford Report Provides Analyst Research on Boston Scientific & Covidien

NEW YORK, NY--(Marketwire - January 18, 2011) - Earlier this month the US Bureau of Labour Statistics (BLS) reported that unemployment rate dropped by 0.4 percentage point to 9.4 per cent in December -- the lowest it has been in 18 months. Paul Zemsky, the head of asset allocation at ING Investment Management, argues that "The U.S. economy is all about jobs and anything that leads folks to believe that there's a better job market will be good for equities." This is especially true for the Medical Device Sector as the current spike in unemployment has made many patients reluctant to dole out of pocket expenses for medical devices. To compensate, many companies throughout the sector are lowering device prices. However this has the effect of narrowing profit margins and aggravating the issues facing the industry. The Bedford Report examines the outlook for companies in the Medical Instruments & Supplies Industry and provides research reports on Boston Scientific Corporation (NYSE: BSX) and Covidien plc (NYSE: COV). Access to the full company reports can be found at:

www.bedfordreport.com/2011-01-BSX

www.bedfordreport.com/2011-01-COV

Recently a Kaiser Family Foundation monthly survey found that over half of Americans put off medical care in December because of the cost. Some analysts say this is cause for concern as people are more likely to visit the doctor toward the end of the year once they meet their annual insurance deductibles.

Additionally the survey found that one in four said their household had trouble paying medical bills over the past year.

The Bedford Report releases regular market updates on the Medical Instruments & Supplies Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Profit margins throughout the medical device industry are being hurt from several directions. Companies have had to lower device prices to combat the high unemployment rates, while sweeping healthcare reform that came into effect last year has also crimped profits. Despite the effect on margins, analysts argue that equipment makers are better adjusted to the sweeping reform. In fact many companies say they are benefiting from the new pool of patients that are now covered.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer

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