Moody’s Predicts Growth for Medical Device Companies

The medical device sector is on track for stable growth, according to Moody’s Investors Service, according to an article by the Associated Press. However, it warns that it may not accelerate to pre-recession levels.

“We foresee generally stable business fundamentals for the medical products and device sector over the next 12 to 18 months,” said Diana Lee, a Moody’s senior credit officer.

What drives growth, as well as negative effects, depends on the specific area, Moody’s said, but hospital supply companies should be one of the most resilient segments, according to the AP.

The service also said an increase in new product launches and a slow recovery in equipment spending by hospitals should help medical device companies.