Moody's Sees Stable Outlook for Medical Devices

Moody's Investors Service said Tuesday the medical products and device sector is set for stable growth, though it may not fully recover to pre-recession levels.

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

The growth drivers and negative effects of the economy will vary by sub-sector, Moody's said. Hospital supply companies should be among the most resilient. Also, Moody's doesn't expect a significant decline in the growth of hospital admissions over the near-term, even though the extension of COBRA health benefits to the jobless is winding down.

New product launches should benefit medical device companies, along with a gradual recovery in equipment spending by hospitals, Moody's said.