China's reforms will hurt US manufacturers

 08-Dec-15, Moody's 

China's implementation of healthcare reforms changing the approval process for new medical devices and favoring local manufacturers will restrain growth for US medical products and device manufacturers, says Moody's Investors Service.

Image: Shannon Stapleton / Reuters

China's healthcare reforms will be particularly credit negative for companies that make complex devices, such as Medtronic plc, Boston Scientific and St. Jude Medical.

"The reforms will lengthen the time it takes for certain companies to get their products approved," said Diana Lee, a Moody's Vice President and Senior Credit Officer. "A key change is the need for companies with high-tech devices to conduct in-China clinical trials."

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