May 31, 2019 / 5:00 PM / 6 months ago

BUZZ-Medtronic, Baxter most vulnerable to Mexico tariff threat; full impact uncertain - BMO

** Medical device makers Baxter International Inc, Medtronic Plc, and Silk Road Medical appear to have the “greatest” exposure to Donald Trump’s Mexico tariff threat, though it is impossible to tell the full impact, brokerage BMO Capital Markets notes

** President Donald Trump said on Thursday the United States will impose a 5% tariff on all goods coming from Mexico starting on June 10 until illegal immigration across the southern border is stopped

** The proposed 5% tariff would result in a less than $10 mln impact on Baxter, brokerage notes

** Bausch Health Co’s Mexico manufacturing supplies to Mexico and Central America, not the U.S. Therefore, the impact of tariffs on BHC is minimal, Cantor Fitzgerald says

** BMO says that for the largest U.S. standalone medical device maker Medtronic, Mexico is listed in the co’s 10-K annual filing as the fourth largest manufacturing region

** Other medical technology companies with manufacturing facilities in Mexico include Stryker Corp, Teleflex Inc , Hill-Rom Holdings, Conmed Corp, Merit Medical Systems and Masimo Corp, brokerage Needham says

** The 36-membered S&P 500 health care equipment and services index slips 0.3% on Friday (Reporting by Manojna Maddipatla)

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