Interesting note by a Wells Fargo analyst speculating that Edwards or Boston Scientific would be good acquisition targets for J&J.
In a Sept. 16 note, the analyst observed that devices accounted for 41% of J&J's total sales in 2012 but are expected to generate only 32% in 2019. Lately, he writes, J&J Chief Executive Alex Gorsky has called out the increasing innovation and friendlier regulation of devices, compared with some other products.
The Wells Fargo analyst wrote that either would get J&J into the growing market for heart valves inserted through arteries, instead of open-heart surgery. Edwards has the leading position in such transcatheter valves, two-thirds of the market for aortic valves, and a head start in the emerging market for transcatheter mitral valves.
Both make sense but would Gorsky have the cajones to make it happen? Or would a smaller acquisition target make more sense?