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The zombie deal that won't die: Smith & Nephew (MassDevice)
UK medical device maker Smith & Nephew ADR (NYSE: SNN) is over 150 years old. A leader in orthopedics, endoscopy and wound care, it makes an attractive takeover target.
The medical device industry is a great place to exploit rising longevity and living standards worldwide. But the global economic downturn has put pressure on pricing.
For example, in the orthopedics field, patients have opted for older, lower-cost, artificial hips or opted out of surgery altogether. Meanwhile, upcoming tougher regulatory standards in the U.S. and Europe threaten to hike industry costs.
Fortunately, Smith & Nephew has a strong geographic spread of revenue. This offers scope for diversification into new markets, especially for its U.S. peers.
Venkat Rajan, medical devices manager at the research firm Frost & Sullivan, said, “Smith & Nephew is very strong, with a good brand reputation and a high presen...
