Here are five things to know:
1. The medical device company industry has long been acquainted with mergers and acquisitions activity. Big companies seek new therapies and small companies position themselves as acquisition-worthy targets.
2. Today, M&A activity proves more strategic than in the past, with big companies looking to dominate an entire space, thus offering a comprehensive solution.
3. Regulatory demand, tax issues, reimbursement and pricing all increased M&A activity outside of the United States.
4. Further, the lengthy FDA-approval process forces companies to band together to survive losses accrued during the intermittent time.
5. Zacks recommends investors focus on stock where consolidation will prove beneficial. For example, the firm highlights NuVasive as a “strong buy,” following its deal to acquire Biotronic NeuroNetwork.
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