Underperforming Medtronic and Allezoe Medical Look to Turn Around Fortunes in 2012
December 16, 2011 08:16 ET
Underperforming Medtronic and Allezoe Medical Look to Turn Around Fortunes in 2012
The Bedford Report Provides Equity Research on Allezoe Medical Holdings & Medtronic
NEW YORK, NY--(Marketwire - Dec 16, 2011) - Unlike most of the so-called "recession proof" healthcare sector, the medical equipment and supplies industry has underperformed the S&P 500 by a rather large margin this year. Down more than 18 percent over the last year, medical supply makers are seeing their margins squeezed as President Obama's healthcare reform and increased regulation is threatening the industry's pricing environment. The Bedford Report examines investing opportunities in the Medical Equipment & Supplies industry and provides equity research on Allezoe Medical Holdings, Inc. (
[ www.bedfordreport.com/ALZM ]
Medtronic, Inc. is the global leader in medical technology and is engaged in research, design, manufacture and sale of products to alleviate pain, restore health and extend life. Earlier this week the Justice Department announced that Medtronic has agreed to pay $23.5 million to settle accusations that it paid kickbacks to doctors to implant its pacemakers and defibrillators.
Medtronic was accused of using two postmarket studies and two device registries as vehicles to pay illegal kickbacks to doctors. Medtronic paid doctors a fee of roughly $1,000 to $2,000 a patient. The government contended that Medtronic had solicited doctors for the studies to get them to use its devices, AP reports.
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Allezoe Medical Holdings, Inc., a biomedical company, develops, patents, and sells portable hypothermic, oxygenated preservation, and transport technology for human organs. In September Allezoe announced that its wholly owned subsidiary SureScreen Medical will be responsible for taking Allezoe's HPV diagnostic technology through the appropriate trials and federal clearances.
HPV is linked to a number of cancers in both men and women. Allezoe argues that given the size and scope of the technology's applications, "a subsidiary is appropriate to orchestrate the process."
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