Hospitals consolidating product lines

“How do medical-device manufacturers better position themselves to provide product shopping not just to physicians but also hospital administrators?” said Joanne Wuensch, an analyst for BMO Capital Markets Corp.Care Fusion markets products such as intravenous infusion systems and automated medication dispensing and supply management systems.

BD said Sunday it would buy Care Fusion in a cash-and-stock deal (PDF) that would make the combined company a leader in medication management.

Two months later, Medtronic surprised analysts when it proposed buying Covidien, an Irish supplier of surgical supplies, for .9 billion.

“This is a continuation of that trend.” The proposed acquisition is the third multibillion-dollar deal in the medical technology sector so far this year.

Warsaw, Ind.-based Zimmer Holdings in April announced plans to acquire Biomet, another orthopedic device manufacturer, also based in Warsaw, for .35 billion.

It had been in the news earlier this year regarding allegations of off-label marketing.

The deal “accelerates BD's transition from a product-focused company to a customer-centric provider of innovative healthcare solutions with leading scale across the medication management value chain and expanded solutions for patient safety,” Vincent Forlenza, BD's chairman and CEO, said in a statement.


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