Morgan Stanley Comments On Medical Technology Industry

At a recent Morgan Stanley 2010 Healthcare Conference, management commentary was broadly consistent with prior cautious stances on cyclical weakness, but also suggested some attempts to understand secular pressures. Morgan Stanley found management commentary more bullish than investor sentiment.

Utilization commentary focused on the cyclical downturn and assumed a recovery to prior growth rates tied to macro factors. Qualitative commentary from tools management teams suggest end market fundamentals remain intact, however, sustainability will remain the question into 2011.

Capital spending has stabilized and is returning to a sustainable growth path while Life science tools concerns focused on macro and end market questions for the group
exiting 2Q.

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