Moody's Investors Service has upgraded its industry-sector outlook for the U.S. medical products and device industry to stable from negative. According to analysts, key areas of the sector have stabilized and growth should be sustainable over the next year.
Moody's raises outlook for products, device industry
But even with the upgrade, the news isn't all good for the industry. Sales for the medical-device sector, for example, are likely to remain weak compared to 2008. The medical-equipment sector may also continue to see a reduction in sales growth as hospitals continue to cut back on capital spending in light of declining insured patient volume.
Sales overseas should help bolster medical product and device companies' bottom lines throughout 2010, however. “Sales from outside the U.S. continue to exceed U.S. growth rates and should be a significant contributor to overall stability,” said Diana Lee, vice president and senior credit officer for Moody's.
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