US-India Trade Tensions Rise: 3 Stocks In The Line Of Fire
Zacks Investment Research | Jul 17, 2019 08:01AM ET
Asia Pacific seems to be fraught with trade tensions. President Trump recently reacted to India’s new e-commerce rules which might considerably restrict sales of U.S. medical device giants. This will probably irk those who have invested in medical device companies with a significant foothold in India.
Price caps on medical devices have been initiated by the Indian government to ensure affordable medical aid for the poor — a major section of India’s population. Over the recent past, e-commerce chains like Amazon (NASDAQ:AMZN) have significantly boosted U.S. medical device companies’ revenues in India.
Naturally, U.S. medical bigwigs like Abbott Laboratories (NYSE:ABT) and Boston Scientific Corporation (NYSE:BSX) are upset about the sales restriction in India as the nation’s medical products market is valued at a whopping $5 billion.
Echoing the sentiment, experts now foresee a trade deficit of $21.3 billion for the United States (per .
Medtronic (NYSE:MDT) manufactures and sells a wide array of medical devices, including stents, cardiovascular products, continuous glucose monitoring products and orthopedic devices. These products are sold worldwide, significantly contributing to the company’s top line.
In India, the company owns research and development hubs in Bengaluru and Hyderabad.
In the last reported quarter, the company’s emerging market revenues totaled $1.29 billion, up 3.9% year over year and accounted for 16% of net sales.
Illinois-based Abbott Laboratories discovers, develops, manufactures and sells a diversified line of medical products.
In India, the company develops and distributes more than 600 products for varied medical use. These products include PRISM Director, PRISMnEXT blood screening assays, Abocal tablets and Advanced CustomVue for laser vision correction.
Being a global leader in IVD, Abbott offers a broad range of instruments and tests for hospitals, reference laboratories, blood banks, physician offices and clinics in India.
In the last reported quarter, the company saw significant top-line contribution from emerging markets.
Abbott Laboratories Price and Consensus
Varian & Tata Trust Tie Up to Boost Radiotherapy in India ). We expect the latest trade tensions to impact this coalition as well.
In the last reported quarter, the company’s Asia-Pacific revenues grew 7% year over year.
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