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There has been a price erosion for the stocks in the medical supplies industry in early 1999 due to legislative concerns, rotation of investor sentiment in the market, and rising interest rates. However, the increased standards of living around the world, the aging population in the US and other industrialized countries, and new products are favorable for the industry for the long term. Investors will find some worthwhile stocks in this sector, but they need to seek the best prospects in terms of stock price and product diversity.

The factors affecting the medical supplies industry's future performance include the development of new technologies and pressure to control healthcare costs. Given those factors, some companies will suffer, but those with cost-effective products will thrive. Healthcare stocks are generally perceived as defensive, but they have proved vulnerable to the market's increased volatility.

Molecular Biosystems has a product called Albunex awaiting Food and Drug Administration approval that is designed to improve ultrasound images. The potential market of Albunex is $150 million, and approval will send the stock price higher.

Molecular Biosystems Inc develops proprietary diagnostic products and probes for genetic identification. The stock shed 6 1/2 points from $24.25 to $17.75 when the Food and Drug Administration's approval of the company's imaging agent was postponed. Three insiders have cleared out 36,000 shares at the $17.88 to $19.63 range ever since the news about the delay came out. The insider distribution at low prices amidst negative news deserves caution., On Nov. 19, FDA approval of Molecular Biosystems' cardiac ultrasound imaging agent was delayed. The stock gapped 6 1/2 points from $24 1/4 to $17 3/4 on the news. What [...]

Local biotech stocks zoom as confidence in industry grows Fueled by the development of new drugs, especially those to combat AIDS, the value of stock in many local biotech firms [...]