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Bet On This Top Ranked Medical Device ETF - ETF News And Commentary

Benzinga.com
0 Comments|August 11, 2014

Thanks to lackluster global economic activity for most of the year and rising geo-political tensions, sectors less sensitive to economic cycles, including the U.S. healthcare industry, have easily managed to hold out this year.  The broad Health Care Select Sector SPDR (XLV) has beaten the fund tracking the overall markets – SPDR S&P 500 (SPY).
 
Though that's the case, increased mergers and acquisitions (M&As) are also paving the way for stronger business and diverse offerings. Moreover, new product offerings, increased pipeline visibility and restructuring activities are fuelling confidence in the sector.
 
A similar trend has been seen in the medical device and equipment sector – a sub sector of the healthcare industry.  Several MedTech majors struggling with core businesses are looking to explore potential therapies through collaborations and alliances to focus on their areas of expertise (read: XPH Crushing the Pharma ETFs Competition).
 
One of the top companies in the space, Abbott Labs (ABT) recently signed a deal with Mylan for the sale of its non-U.S. developed markets specialty and branded generics business.
 
Medical device companies are coming up with efficient capital allocation plans, expanding their product offerings and investing in emerging geographies in order to survive in the highly regulated medical device industry, which is burdened with stringent and complex procedures (read: Medical Device ETF Investing 101).
 
Given the stepped up M&As and a shift in their business models toward a value-based healthcare structure amid rising pricing pressure and other bottlenecks in ...

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