Moody's Investors Service released its January Healthcare Quarterly report, detailing analysts' predictions for the healthcare industry in 2020.
Five predictions for the medical device industry:
- The market for continuous glucose monitoring products for diabetes treatment will continue to accelerate, led by Abbott's FreeStyle Libre device.
- The use of robotic-assisted surgeries will expand rapidly, part of the rationale for Stryker's proposed $5.4 billion purchase of Wright Medical.
- The market for duodenoscopes could exceed $1 billion as devicemakers such as Boston Scientific release innovative designs to reduce infection risks.
- Large companies with solid balance sheets and strong cash flows, including Abbott, Medtronic and Baxter, will likely make merger or acquisition deals worth around $500 million or less each.
- Emerging market economies will grow at 4.6 percent, their slowest pace since 2009, a significant decline since companies such as Boston Scientific and Medtronic each generate more than 10 percent of their revenue from the emerging markets.