Moody's upgrades medical device industry to "positive"


Moody's Investors Service (New York) has upgraded the medical device industry from "stable" to "positive," forecasting 4 to 5% earnings growth over the next 12 to 18 months. Driving the solid EBITDA [earnings before interest, taxes, depreciation and amortization] growth are large mergers and acquisitions (M&As), new products and an uptick in hospital admissions, says the rating agency. On the downside, effects from foreign exchange rates will show lower year-over-year growth over the next one to two quarters.

It's more good news for the medtech sector and its supply chain, as this upgrade comes on the heels of a report on the global medical polymers market, which is forecast to expand at an 8.4% annual compound growth rate through 2020.

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