Medical devices

J&J’s heart deal pumps up post-breakup prospects

1 Nov 2022

The healthcare firm will get a measly return in the near term from paying $16.6 bln for heart-pump maker Abiomed. But J&J is buying growth: Abiomed’s 20% revenue growth can probably continue for several years. That provides ballast as J&J prepares to spin off its consumer arm.

Capital Calls: Walmart whiplash

16 Aug 2022

Concise views on global finance: The U.S. mega-retailer revised its profit forecast yet again, just weeks after sounding the alarm.

Capital Calls: Philips disappoints again

25 Jul 2022

Concise views on global finance: Shares in the 17 bln euro Dutch medical technology group dive after handing investors another unpleasant outlook surprise.

Biotech is set for a geopolitical stress test

12 Jan 2022

The sector has been immune to U.S.-China tensions that sickened cross-border tech investments; in fact giants like $27 bln cancer treatment specialist BeiGene are thriving thanks to global tie-ups. Decoupling looks unlikely, but political risks are rising fast.

Finding China’s Moderna is a financial long shot

6 Jan 2022

The U.S. biotech giant’s Covid-19 vaccines have inspired copycats in the People’s Republic, where cities are scrambling to contain fresh outbreaks. With foreign jabs yet to be approved, the $13 bln Walvax looks promising. Feverish valuations leave little margin for error.

Theranos jury draws a line between hype and lies

4 Jan 2022

Elizabeth Holmes, who touted non-existent capabilities for her now-defunct blood-testing startup, has been convicted of defrauding investors. If it stands, she faces jail time. Even in Silicon Valley, there's a limit to how flagrantly founders can fake it until they make it.

Kidney transplant endangers healthy CSL

14 Dec 2021

The Australian flu-vaccine maker will buy Swiss nephrology specialist Vifor for about $12 bln in cash. It’s paying a 60% premium for a weaker peer and doesn’t expect much in the way of cost savings. The mid-pandemic diversification hardly justifies this elective M&A procedure.

The Exchange: Breakingviews at Reuters Next

9 Dec 2021

At the global conference, our columnists interviewed the movers and shakers at Ola Electric, Philip Morris, ViacomCBS and Klarna about disruption at scale in India, the challenges of making bold corporate transitions in tobacco and media, and Europe’s fintech frenzy.

Baxter’s $10.5 bln deal is preventative medicine

2 Sep 2021

Acquiring Hill-Rom and its “connected” hospital beds should boost the medical products maker’s growth. If it doesn’t, the return on investment could be a sickly 6%. A bigger benefit to Baxter may be building up defenses against powerful hospital chains and pressure to cut prices.

Capital Calls: Duolingo IPO valuation

26 Jul 2021

Concise views on global finance: The language learning app has increased its price by almost 20%.

Rich $16.4 bln cancer deal is too ambitious

2 Aug 2020

Siemens Healthineers is re-entering radiation treatment about a decade after exiting, buying Varian. Combining diagnostics and treatments is a good idea. But savings don’t cover the $3 bln premium, and a financial wheeze from Siemens doesn’t compensate.

J&J shows safety is relative

14 Apr 2020

The $368 bln healthcare giant upped its dividend as increased demand for painkillers and Listerine helped first-quarter revenue rise 3%. But consumer-goods sales are likely to shrink, medical-device revenue is in free fall and litigation risk remains. J&J’s success won’t last.

3M fight exposes free trade’s underlying condition

6 Apr 2020

Globalization created wealth and helped keep prices down but wasn’t built for a pandemic where each country puts itself first. Donald Trump’s crude attempt to keep 3M’s N95 masks for Americans is dangerous but not unprecedented. What emerges after the virus should be more robust.

China virus may fast-track drone flight

6 Feb 2020

Contagion fears and quarantines have made it costly and tricky for Alibaba and others in e-commerce and food delivery. Reducing human contact might help. Just as past Asian crises were catalysts for the likes of JD and Line, the new outbreak will give flying robots a push.

China’s health grey zone is hazardous for fintech

16 Dec 2019

Soaring medical costs in the People's Republic have prompted Jack Ma's $150 bln Ant Financial and others to offer insurance-like solutions. A scandal involving a Tencent-backed upstart, though, is a reminder the sector is largely unregulated. That's unlikely to remain the case.

Biotech upstarts will be Big Pharma’s China tonic

6 Nov 2019

AstraZeneca is launching a $1 bln healthcare fund in the People's Republic. A wealthier, older society promises huge growth, but rising costs mean Beijing is pushing drugmakers to lower prices. Investing in local discoveries and exporting them globally could be a smart remedy.

Smith+Nephew calls rare bluff over CEO pay

21 Oct 2019

Namal Nawana wanted a higher salary to run the UK artificial joint maker. The board said no and has parted company with him. His $8 mln package lags U.S. peers, and the shares have done well since he joined 17 months ago. Still, he should have negotiated harder at the start.

Smith & Nephew U.S. pay wheeze hides deeper logic

25 Jun 2019

The British artificial-knee maker is considering moving its listing across the Atlantic, the FT reports. American investors’ tolerance for high wages might help keep CEO Namal Nawana happy. S&N’s business, its M&A ambitions and lowly valuation are better reasons for jumping ship.

Alpine stability helps Swiss scale IPO peak

23 Apr 2019

Train maker Stadler and medical devices group Medacta raised a combined $1.9 bln in Zurich listings this month, defying a European market becalmed by Brexit and trade woes. Relative stock market strength is fuelling the rush. As valuations flatten, other venues will catch up.

Second-hand $4 bln colostomy bag LBO may get messy

26 Mar 2019

Medical-kit maker ConvaTec’s value rose 9 pct after a report that buyout group EQT might be interested. Its shares are down a third since it was floated by private equity in 2016. A new owner could slash costs to rip out cash, but risks sacrificing more market share to rivals.