By Tom Ballard, Chief Alliance Officer, PYA
It’s always a great networking event with some useful insights. We’re referring to the Nashville Health Care Council’s annual “Wall Street’s View on Prospects for the Health Care Industry” luncheon forum.
A record crowd – more than 700 – turned-out Thursday for the event that featured, in alphabetical order, Frank Morgan, Managing Director of RBC Capital Markets; Joshua Raskin, Senior Research Analyst with Nephron Research LLC; A.J. Rice, Managing Director of Credit Suisse; and Kristen Stewart, Director with Deutsche Bank.
It was Stewart’s first time on the panel, but we thought our readers focused on the medical device space might be particularly interested in her observations.
“My outlook is very positive,” she said for med devices and the corresponding supply industry. “Its been growing at four to five percent a year.”
Stewart said there have been some consolidations in the sector recently, a trend that she expects to continue. In response to a later question, she observed that another trend is many medical device companies offering additional services.
“Medtronic, for example, is doing more value-based solutions rather than acquisitions,” Stewart said.
One of the reasons she was so upbeat about the sector relates to the margins in the industry. “They are very healthy,” Stewart said, with gross margins topping 70 percent in cardiovascular as one example.