C.R. Bard, Inc (NYSE:BCR)  

Buy the Bard!!

Research reports say 12,000 companies engage in the manufacture of medical supplies and devices with combined annual revenue of about $50 billion. The industry has become more concentrated, with the 50 largest companies holding close to 60 percent of the market. In some market segments, concentration is very high. Demand is driven by population demographics and advances in medical knowledge and technology. The profitability of individual companies depends on the ability to develop superior products. Large companies have economies of scale in manufacturing and research & development. Small companies can compete successfully by specializing in a particular market segment, or through technical innovation. Annual revenue per employee is about $200,000.

Major product segments are general medical supplies; surgical instruments; therapeutic devices such as stents, artificial joints, and pacemakers; and diagnostic equipment. Low-cost manufacturing efficiency is the main concern of companies that make low-technology products like latex gloves, tape, gauze sponges, and syringes. Technological innovation is the main feature of companies that produce diagnostic and therapeutic devices and instruments, derived from the explosive development of medical knowledge and treatment during the last decade.

The industry reflects the highly specialized medical treatments recently made available. Most medical device manufacturers specialize in one area of medicine and sometimes in just one type of treatment. EPMedSystems, for example, makes only devices that treat arterial fibrillation. The high degree of specialization in a field of rapid innovation allows small companies to compete successfully.   

C. R. Bard, Inc. is a leading multinational developer, manufacturer, and marketer of innovative, life-enhancing medical technologies in the fields of Vascular, Urology, Oncology, and Surgical Specialty products. Bard pioneered the development of single-patient-use medical products for hospital procedures; today Bard is dedicated to pursuing technological innovations that offer superior clinical benefits while helping to reduce overall costs. Bard’s oncology products cover various devices used in the treatment and management of various cancers and other diseases and disorders. Principal oncology products consist of specialty access catheters, ports, vascular access ultrasound devices, and enteral feeding devices. Its surgical specialty products include meshes and fixation systems for hernia and other soft tissue repairs; irrigation devices for orthopedic, laparoscopic, and gynecological procedures; and products for topical homeostasis. Bard sells its products to hospitals, individual health care professionals, extended care facilities, and alternate site facilities.
 
Timothy M. Ring is the Chairman, Chief Executive Officer. He joined the company in 1995. Prior to this he worked for Abbott Laboratories for 10 years.

John H. Weiland is the President and Chief Operating Officer. He joined the company in 1996. Prior to Bard he was with Dentsply International Inc., a manufacturer of dental supplies. He also served as President and Chief Executive Officer of Pharmacia Diagnostics Inc. from 1989 to 1991 and as Vice President and General Manager of Baxter International - Scientific Products Division from 1988 to 1989. Mr. Weiland served as Vice President East American Scientific Products Division of Baxter Healthcare Corp. prior to 1987. He has been Director of C. R. Bard Inc. since April 20, 2005   
Bard's main Competitors are Johnson & Johnson, Baxter, Medtronic, Boston Scientific, AngioDynamics and Merit Medical Systems. Bard reported  net sales for the third quarter ended September 30, 2007 of $544.8 million, an increase of 10% on a reported basis over the third quarter ended September 30, 2006 net sales of $497.5 million. For this period net sales increased 8%. The consolidated net sales for the nine months ended September 30, 2007 are $1,618.7 million, an increase of 11% over the nine months ended September 30, 2006 consolidated net sales of $1,459.9 million. For the nine months ended September 30, 2007, net sales increased 9%.

The company has increased funding of research and development activities in recent years, with a focus on products and markets that are growing faster than 8% annually. In 2006, the company spent approximately $145.7 million on research and development, an increase of approximately 173% from research and development spending of approximately $53.4 million in 2001. For the company to successfully commercial all such products, prolonged testing and refining is required, but the success rate seems to be higher in comparison to its peer.   

Decreasing value of the dollar as a currency effected a decrease in the net sales for the quarter ended September 30, 2007 by 0.2% compared to the same period in the prior year. Exchange rate fluctuations had the effect of increasing net sales for this quarter by 2% as compared to the same period in the prior year. Price changes had the effect of increasing net sales for the nine months by 0.1% compared to the same period in the prior year. The primary exchange rate movement that impacts net sales is the movement of the Euro compared to the U.S. dollar.  

Their revenue growth and profit margin of 15.07 % clearly indicates that this stock will outperform in comparison to similar companies in this industry. In spite of the analysts view on downgrading stocks in this industry, Bard offers a good return on Investment. Buy this stock.