Lifesaving medical innovations can be some of the most profitable - and satisfying - allocations for investors' savings. Take, for example, the da Vinci surgical system, a set of special instruments for minimally invasive, robotic-assisted surgery. This system was designed to make all surgeons great surgeons. Combining the best of human judgment and technological precision, this invention from Intuitive Surgical (Nasdaq: ISRG) has been used in more than 1.5 million surgeries, starting with a coronary bypass in 1998. It earned approval from the Food and Drug Administration in 2000, the same year the company went public. And since then, the burgeoning robo-surgeon has more than delivered for its investors. From the company's initial public offering through August 2016, it posted a rise of 2,300%. Along the way, Members of Wealthy Retirement's publisher, The Oxford Club, who got in on the Club's Intuitive Surgical recommendation, more than quadrupled their money. Seeing Is Believing In 2015, another promising medical innovation hit the presses: Abbott Medical Optics, then a subsidiary of Abbott Laboratories (NYSE: ABT), had developed a special lens. When placed in the eye post-cataract removal, it could restore vision. Now, the Tecnis lens is the go-to solution for aphakia, or trouble focusing due to a missing eye lens. This condition affects fewer than 1% of cataract patients - but in a study conducted from 1997 through 2001, 87% of aphakia cases were not expected prior to the surgery, and many of those cases required a second operation to resolve the issue. Abbott's lens was a game changer for these patients. In fact, it was a key reason for Johnson & Johnson's (NYSE: JNJ) acquisition of Abbott Medical Optics in 2017 for $4.325 billion. The chairman of Johnson & Johnson's Consumer Medical Devices group, Ashley McEvoy, stated... AMO was the right fit for us because of their history of innovation and strong positions in surgical ophthalmology, especially their momentum in the cataract space.
It wasn't the eye care business's first time being acquired. When Abbott announced its initial acquisition of the company - then known as Advanced Medical Optics - back in 2009, its shares jumped 143%. Across the board, mergers and acquisitions can provide a powerful boost to a biotech company. That's why merger and acquisition potential is one of three top catalysts Chief Income Strategist Marc Lichtenfeld considers when assessing a prospective healthcare investment. |
No comments:
Post a Comment