Medtronic Inc's $43 billion deal for Dublin-based Covidien Plc should accelerate already intense efforts by medical device rivals to seek merger partners, industry analysts and bankers said on Monday.Medtronic announced the transaction on Sunday, saying it would re-base the combined company in Ireland, where it can take advantage of lower corporate tax rates and easier access to cash generated overseas.The purchase also gives Medtronic more products, as well as greater leverage in negotiating with hospital clients that are taking a much harder line on device spending.The intensified competition will bring new pressure on large device makers such as Abbott Laboratories, Stryker Corp and St Jude Medical Inc to seek acquisitions, industry watchers say. Medtronic plus Covidien will rival industry leader Johnson & Johnson's $28.5 billion in annual device revenue.
Abbott Laboratories (Abbott) is engaged in the discovery, development, manufacture, and sale of a portfolio of science-based health care products. Shares of ABT traded higher by 0.28% or $0.11/share to $39.90. In the past year, the shares have traded as low as $32.70 and as high as $40.56. On average, 6632450 shares of ABT exchange hands on a given day and today's volume is recorded at 5498239.
Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Shares of COV traded higher by 20.45% or $14.73/share to $86.75. In the past year, the shares have traded as low as $53.05 and as high as $73.80. On average, 1943330 shares of COV exchange hands on a given day and today's volume is recorded at 68097984.
Medtronic, Inc. (Medtronic) is engaged in medical technology - alleviating pain, restoring health, and extending life for millions of people worldwide. Shares of MDT fell by 1.1% or $-0.67/share to $60.03. In the past year, the shares have traded as low as $51.06 and as high as $64.33. On average, 4298760 shares of MDT exchange hands on a given day and today's volume is recorded at 65436688.
St. Jude Medical, Inc. (St. Jude) develops, manufactures and distributes cardiovascular medical devices. Shares of STJ traded higher by 1.78% or $1.16/share to $66.25. In the past year, the shares have traded as low as $43.95 and as high as $68.79. On average, 1828700 shares of STJ exchange hands on a given day and today's volume is recorded at 2338957.
Stryker Corporation (Stryker) is a medical technology company. Shares of SYK traded higher by 1.4% or $1.17/share to $84.61. In the past year, the shares have traded as low as $63.71 and as high as $86.12. On average, 1595730 shares of SYK exchange hands on a given day and today's volume is recorded at 2338607.
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