Datascope Benefits from Sale of Patient Monitoring Business

Implications: The sale of Datascope's (NASDAQ: DSCP) patient monitoring business earlier this year to Mindray Medical (NYSE: MR) has resulted in several acquisition offers from unnamed companies.  On Wednesday, Datascope's stock increased 11% in response to this news.   

Analysis: Datascope's (NASDAQ: DSCP) patient monitoring business apparently limited its attractiveness as a potential acquisition target.  On Wednesday, June 5, Datascope revealed that it had received acquisition offers from unnamed companies and its stock increased 11%.  Reasons for this could include the patient monitoring market slow annual growth of 2-3%, limited market share of less than 10% and major competitors such as GE (NYSE: GE) and other market leaders in this medical equipment segment.

Datascope sold its patient monitoring business this year to Mindray Medical (NYSE: MR), which will gain certain advantages and face corresponding challenges with the acquisition of this business from Datascope.

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