Home » Bear Case Scenario » Coviedien the Bear Case Scenario $COV, $BAX, BDX, $ESLOV, $ILMN, $ISRG

Coviedien the Bear Case Scenario $COV, $BAX, BDX, $ESLOV, $ILMN, $ISRG

Covidien (NYSE:COV) has been rather active of late. Follow this bear case scenario as you watch the action.  Regulatory environment is changing in the U.S. Device firms will see an increase in R&D costs attributable to increasingly stringent approval requirements. Co-op purchasing organizations are becoming increasingly price powerful. More clients keep joining to reduce costs.  Covidien’s soft tissue business struggles when competing against J&J’s  entry into the market. The endomechanical business now has commoditised trocars product line facing stiff competition from Applied Medical.

George Gutowski writes from a caveat emptor perspective