Analysts: Economic Downturn to Hit Device Profits

In an environment of strained budgets and tighter spending on capital equipment, manufacturers of diagnostic equipment and devices for elective procedures will be hit hardest, according to industry analysts.

The combination of a weak economy, inflation and rising unemployment will result in people delaying or forgoing medical treatment. Medicare reimbursement cuts also will contribute to lower utilization of imaging equipment, analysts with RBC Capital Markets said.

SOURCE: FDA NEWS