Moody’s report shows positive outlook for US medical device sector in 2019 — 5 insights

The outlook for the U.S. medical devices sector in 2019 appears positive, with an expected EBITDA growth increase and new product expansions, according to Moody’s Investors Service global healthcare outlook report.

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Here are five insights:

1. A 4.5 percent to 5.5 percent EBITDA growth increase will be a driving force behind the positive outlook.

2. Most companies and product categories will experience mid-single digit revenue growth due to product innovation.

3. Acquisition synergies, such as BectonDickinson’s purchase of C.R. Bard, will benefit operating margins.

4. An accelerated growth in GDP rates will fuel demand for medical products, and emerging market sales will continue to grow more than 10 percent.

5. Moody’s noted three medical device companies that completed M&As of interest: Becton Dickinson, Abbott Laboratories and Zimmer Biomet.

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