Credit FAQ: What Are The Rating Implications Of Product Litigation On Medical Device Companies? - S&P Global Ratings’ Credit Research

Credit FAQ: What Are The Rating Implications Of Product Litigation On Medical Device Companies?

Credit FAQ: What Are The Rating Implications Of Product Litigation On Medical Device Companies? - S&P Global Ratings’ Credit Research
Credit FAQ: What Are The Rating Implications Of Product Litigation On Medical Device Companies?
Published May 26, 2015
10 pages (4768 words) — Published May 26, 2015
Price US$ 375.00  |  Buy this Report Now

About This Report

  
Abstract:

Although medical devices can offer profound life-enhancing and life-extending benefits, they may also come with significant risks--especially newly designed implantable devices, which may have unanticipated interactions within the sensitive ecosystem of the human body. As a result, we've observed that product liability lawsuits and settlements are particularly frequent in the medical device sector, and many leading medical device companies have recorded significant legal expenses and reserves for these claims (see tables 1 and 3). In our view, product liability is of greater concern for medical device companies than for those in other sectors. This is true even relative to companies in the adjacent pharmaceuticals sector, for several reasons: The extensive series of clinical trials required for drug approval are more

  
Brief Excerpt:

...Although medical devices can offer profound life-enhancing and life-extending benefits, they may also come with significant risks--especially newly designed implantable devices, which may have unanticipated interactions within the sensitive ecosystem of the human body. As a result, we've observed that product liability lawsuits and settlements are particularly frequent in the medical device sector, and many leading medical device companies have recorded significant legal expenses and reserves for these claims (see tables 1 and 3). In our view, product liability is of greater concern for medical device companies than for those in other sectors. This is true even relative to companies in the adjacent pharmaceuticals sector, for several reasons:...

  
Report Type:

Commentary

Sector
Global Issuers, Structured Finance
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Credit FAQ: What Are The Rating Implications Of Product Litigation On Medical Device Companies?" May 26, 2015. Alacra Store. Jun 22, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Credit-FAQ-What-Are-The-Rating-Implications-Of-Product-Litigation-On-Medical-Device-Companies-1400364>
  
APA:
S&P Global Ratings’ Credit Research. (). Credit FAQ: What Are The Rating Implications Of Product Litigation On Medical Device Companies? May 26, 2015. New York, NY: Alacra Store. Retrieved Jun 22, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Credit-FAQ-What-Are-The-Rating-Implications-Of-Product-Litigation-On-Medical-Device-Companies-1400364>
  
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