Sup­pli­ers look to buy­backs in wake of slow growth

Modern Healthcare - - LATE NEWS -

A tougher Food and Drug Ad­min­is­tra­tion ap­proval process and in­creas­ingly cost­con­scious hos­pi­tals are push­ing med­i­cal sup­pli­ers and de­vice­mak­ers to pur­sue buy­backs, div­i­dends or ac­qui­si­tions to ap­pease share­hold­ers in the wake of slow sales growth, ac­cord­ing to a Moody’s In­vestors Ser­vice re­port. Diana Lee, a se­nior credit of­fi­cer for Moody’s, said in a news re­lease that the rat­ings agency ex­pects man­u­fac­tur­ers to en­gage in “share­holder-friendly ini­tia­tives” over the next year and a half to sat­isfy share­hold­ers and en­cour­age growth. Ac­qui­si­tion op­por­tu­ni­ties will be lim­ited be­cause of the dif­fi­cul­ties in­volved in find­ing deals that make strate­gic sense and agree­ing on the value of the as­sets, Moody’s said. The

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