LONDON (ShareCast) - Global M&A activity gave stocks in the healthcare equipment and services a boost on Thursday, with Smith & Nephew rising strongly after a takeover bid for sector peer Biomet.

US artificial joint maker Zimmer Holdings announced today that it would buy orthopaedic products group Biomet in a deal valued at $13.35bn.

Smith & Nephew, which also makes medical devices, had turned down a £15bn merger with Biomet back in 2011.

The London-listed stock was up 3.4% at 909p in afternoon trade.

Other stocks in the sector such as Tristel, Advanced Medical Solutions and Immunodiagnostic Systems were also rising strongly today.

The Biomet takeover comes just days after a flurry of deals in the related pharmaceutical sector and lifts hopes that large players in the industries are beginning to spend. Pharmaceutical stocks were rising strongly again today.

GlaxoSmithKline and Novartis unveiled a multi-billion dollar three-part deal on Tuesday, while AstraZeneca gained strongly on speculation that Pfizer would make a £60bn bid for the company. Meanwhile, Valeant Pharmaceuticals offered $47bn to buy Botox maker Allergan.

On a negative note, wider pre-tax losses and a slight decrease in the annual profit margin sent shares of healthcare group PuriCore tumbling more than 12% today in London.

The FTSE Fledgling company, which develops products that protect against the spread of infectious pathogens, posted a pre-tax loss for 2013 of $6.49m, compared to $3.15m in 2012, hit by increased cost of sales and an exceptional loss on the discount of a convertible bond.


Top performing sectors so far today
Health Care Equipment & Services 5,125.18 +3.05%
Oil Equipment, Services & Distribution 25,299.75 +1.54%
Forestry & Paper 10,879.07 +1.35%
Pharmaceuticals & Biotechnology 12,599.15 +1.07%
Personal Goods 23,441.89 +0.67%

Bottom performing sectors so far today
Food Producers & Processors 7,592.95 -1.93%
Industrial Metals & Mining 1,175.34 -1.57%
Real Estate Investment & Services 2,786.94 -1.17%
Industrial Transportation 3,096.11 -1.03%
Automobiles & Parts 9,006.23 -0.93%

BC

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