Medical devices
Robbins also likes Thermo Fisher Scientific Inc. (NYSE:TMO). While the life sciences tools industry is highly fragmented, Thermo Fisher Scientific Inc. (NYSE:TMO) is looking to make the industry a little smaller. Back in April, Thermo Fisher Scientific Inc. (NYSE:TMO) announced plans to acquire Life Technologies Corp. (NASDAQ:LIFE) for $13.6 billion. Life Technologies Corp. (NASDAQ:LIFE) also happens to be Glenview’s top stock holding as of the end of 1Q. The acquisition makes sense given the complementary products the two offer.
Robbins notes that growth slowed in the space of late due to sequestration cuts, but the hedge fund manager believes that organic growth will recover in 2014. The Thermo-Life combo would generate sales in excess of $16 billion, with a 25%-to-75% split for instrument sales versus recurring revenue.
Thermo Fisher Scientific Inc. (NYSE:TMO) believes that the deal could be accretive to EPS by upwards of $1.00 in year one. Beyond the Life Technologies Corp. (NASDAQ:LIFE) acquisition, Thermo Fisher Scientific Inc. (NYSE:TMO) is turning to emerging markets for growth. The company hopes that over 25% of revenue will come from Asia and emerging markets by 2016, compared to 10% in 2006.
Bottom line
Glenview Capital likes hospitals, as do I. The big tailwind for the hospitals includes greater inpatient occupancy levels, which should be pushed higher as more individuals are covered with insurance due to the healthcare reform.
Tenet and Health Management Associates Inc (NYSE:HMA) are two of the industry’s top picks, with Tenet as an industry consolidator, while
Health Management could be an acquisition target. Thermo Fisher Scientific Inc. (NYSE:TMO) has a leading position in the medical-device segment and its Life Technologies Corp. (NASDAQ:LIFE) acquisition will help boost the companies offerings and markets covered.
Tenet and Health Management Associates Inc (NYSE:HMA) are two of the industry’s top picks, with Tenet as an industry consolidator, while
Health Management could be an acquisition target. Thermo Fisher Scientific Inc. (NYSE:TMO) has a leading position in the medical-device segment and its Life Technologies Corp. (NASDAQ:LIFE) acquisition will help boost the companies offerings and markets covered.
Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Thermo Fisher Scientific (NYSE:TMO). Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Finding Alpha Amongst Obamacare originally appeared on Fool.com is written by Marshall Hargrave.
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