My photo
Andrew T. Gillies is Director of Communications at the Center for Audit Quality, an affiliate of the American Institute of CPAs, in Washington, DC. Based in Washington since 2002, he has also worked in editorial and communications roles at the Investment Company Institute, the World Bank, Forbes, and Vault.com. His policy-themed writing has focused on aerospace and defense, energy and environment, transportation, and financial services.

Tuesday, November 07, 2000

Stock Focus: Medical Supply Companies

NEW YORK - Since April, the S&P Medical Products and Supplies index is up 17% versus the Nasdaq's 19% decline. IBES International analysts project profits for this group will grow 18% this year and 25% in 2001.

Unlike manufacturers of prescription drugs and providers of health-care services--which are facing increased political pressure and government scrutiny--the medical supplies industry hasn't been subjected to the same cost-cutting demands. "There's not a lot of Medicare and other regulatory risk now," says Glenn Reicin, managing director at Morgan Stanley Dean Witter, about medical supply companies.

Haemonetics (nyse: HAE - news - people) recently had some good news from federal regulators: The company won clearance from the Federal Drug Administration to market a blood filtering system that could double the number of red blood cells harvested from a blood donor. For the quarter ending Sept. 30, Haemonetics' earnings rose 25%, to 26 cents a share, over the same period last year. (Note: Latest results are before a one-time charge attributed to the acquisition of Transfusion Technologies.) Haemonetics shares trade at just 18 times estimated 2001 earnings of $1.40 a share.

Full story at Forbes.com