Pembroke Pines, FL (PRWEB) January 26, 2009
NextWave Research announces the publication of our analysis on the significantly different results for Q4 2008 and 2009 outlooks for Abbott Labs (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ).
In the analysis titled "Abbott Labs and Johnson & Johnson - Clash of the Titans", analyst John M. Putnam, CFA believes three factors: the economy, new product cycles and old problems, are to blame for the divergence in their results.
Mr. Putnam stated "The loss of jobs translated into loss of health insurance benefits which translates into less per capita spending especially on elective services and procedures." And on JNJ results "Most surprising in JNJ's business was an 18.4% U.S, and 8% international decline in diabetic care products which could be signaling a sharp shift to generic meters and strips or a shift by patients to less expensive mail order sources."
He also noted Abbott Labs' XIENCE drug-eluting stent (DES), became the market leading DES in the U.S. during the fourth quarter with global sales of $410 million while JNJ's Cypher DES only had revenues of $270 million globally with Cypher's market share dropping to 15% down from 23% in the previous quarter.
Mr. Putnam further believes that Abbott Labs' recently announced agreement to acquire American Medical Optics (NYSE: EYE) strengthens and expands Abbott's current medical device business, providing further diversification for the long term.
Other companies mentioned are Medtronic (NYSE: MDT) and Boston Scientific (NYSE: BSX).
NextWave Research founder, Stephen M. Dunn states "Continuing with our 2009 recommendation of reassessing basic investment themes, we believe that investors should carefully review the outlook for Johnson & Johnson during the current economic downturn, especially compared to other large healthcare companies such as Abbott Labs."
Interested readers can access all of NextWave Research's analysis free-of-charge at http://www.NextWaveResearch.com.
About NextWave Research:
NextWave Research was created to address the dearth of professional Wall Street research coverage for quality small-cap companies. We believe that quality companies who choose to sponsor research analyst coverage provide a desperately needed service to both individual and institutional investors with reports and commentary freely available to all. We Don't Get Paid to Like Companies-We Get Paid by Companies We LikeTM
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