We suspect that J&J will continue to pursue acquisitions, but none as large as Guidant. |
We think investors will look past third-quarter guidance, as the company has historically been overly conservative, and react favorably to the quarter. |
We think it is unlikely that these changes will modify purchasing and demand characteristics of medical devices. Hospitals have traditionally had little leverage in reducing device costs. |
We view this as a relatively uneventful quarter for Abbott. |