The most important thing to understand about the medical device industry is probably its product diversity. When it comes to medical device stocks, those risks are likely to take on certain attributes. Baxter's medication delivery and pharmaceuticals units contributed 24% and 19%, respectively, of total revenue in 2018. This system is used to obtain tissue from within the lung for analysis to determine if a person has lung cancer. Stock Advisor launched in February of 2002. Outside of the U.S., Abiomed has penetrated 17% of the total addressable market in Germany and 1% in Japan. However, the claims later proved to be false. The market caps, a measure of the value of all stocks available for that company, are … Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. Also, because many of these large medical device makers generate significant revenue in international markets, particularly China, trade barriers or the threat of such barriers can hurt these stocks. Its MRIdian solution integrates MRI technology, radiation delivery and proprietary software to simultaneously image and treat cancer patients. Align Technology and Intuitive Surgical enjoyed virtual monopolies for several years, but now both companies face new rivals. Products marketed by these units include parenteral nutrition therapies, medical devices used in surgical procedures, and continual renal replacement therapies. Tandem's sales have been growing at a phenomenal rate, jumping 71% in 2018. DexCom focuses on developing and marketing continuous glucose monitoring (CGM) systems for individuals with diabetes. There's no way to know whether medical device stocks will perform as well in 2019 as they did last year. As a result, they must raise the capital needed to fund operations, typically through either borrowing money or by issuing new shares -- both of which can have negative co… The Securities and Exchange Commission's top cop wants drug companies to be more transparent with investors about their dealings with the U.S. Food and Drug Administration. These products, which primarily include aortic tissue valves, generate more than 20% of total revenue. BD operates three business segments: BD medical, BD life sciences, and BD interventional. 1. The pharmaceuticals segment generates roughly half of J&J's total revenue. Are you an investor looking for stocks that beat the S&P 500 index? For companies that aren't yet profitable, the amount of cash available is directly related to how long it will be before additional capital must be raised through debt or issuing new shares. The cardiac and vascular group contributes around 38% of Medtronic's total revenue. At the bottom is the transcatheter mitral and tricuspid therapies product group, which adds less than 1% of total revenue. Global Pre-Owned Medical Devices Market to Reach $6. Some of these medical device companies are large and very profitable. Examples of medical devices include pacemakers, artificial joints, … Failure to obtain the necessary approvals to go to market could negatively impact these companies' growth prospects. But based solely on sales of medical devices, the stock holds the No. Even though Align has been tremendously successful, there remains a huge untapped market. 5 Top NASDAQ Medical Device Stocks of 2019. Intuitive's revenue jumped nearly 19% last year to $3.7 billion, while earnings soared 68% year over year to more than $1.1 billion. The BD medical segment generates more than half of the company's total revenue. TORONTO, Oct. 21, 2020 /PRNewswire-PRWeb/ -- Today's pharmaceutical and medical device companies are facing rising pressure from healthcare communities with patients needing more personalized care, consumers and policy makers pushing to lower healthcare costs, the drive to reduce time and costs to bring new products to market, and complying with increasingly onerous regulations. The company is in great financial shape. As a result of the FDA's broad definition, the medical device industry is huge, with at least 32,000 medical device companies based in the U.S. and Europe alone. While Medtronic's diabetes group contributes less than 10% of total revenue, sales for its insulin pumps and CGM systems are increasing significantly. The other companies are also likely to see stiffer competition in the future. It's organized into three business segments: orthopedics, medsurg, and neurotechnology and spine. Boston Scientific's other two segments each bring in around 31% of total revenue. Here are some key highlights for each of these big medical device stocks. Boston Scientific currently ranks at No. Some medical devices can have a small total addressable market or a market that is already saturated with little room for additional growth. The rhythm and neuro segment markets medical devices including catheters used in electrophysiology, defibrillators, and neuromodulation devices for treating movement disorders and managing chronic pain. Medical Distributors Stocks The medical distributors sector includes companies that sell medical products on a wholesale basis to hospitals, doctors. 4 Million by 2027. With new products on the way to treat more difficult cases, Align should be able to expand its addressable market significantly as well. Class I devices usually only require registering with the FDA, and there's no approval process. It also is the smallest insulin pump on the market, which makes it more convenient for users to wear. Strong revenue and earnings growth has been a common theme in Align's quarterly updates, although its earnings growth trajectory has slowed somewhat recently. Factors such as diet and lack of physical activity are contributing to this increase. The greatest risk for these medical device stocks is the threat of competition. Market data powered by FactSet and Web Financial Group. Align pioneered the use of clear aligners for straightening teeth. Returns as of 12/09/2020. Second, the handful of companies with products that could potentially challenge Intuitive don't have the long track record that da Vinci has. They belong to the Medical-Systems/Equipment industry group and, respectively, have Composite Rating of 95 and 98. Data sources: Yahoo! Why IHI? Most of the 10 biggest medical device makers market products that fall into this last category. Becton, Dickinson and Company (BD) ranks relatively high on the 2019 list of top medical device stocks thanks in large part to its 2017 acquisition of C.R. See you at the top! For Q3 2020, Insulet reported a … Medtronic. J&J is a holding company that operates more than 260 companies across the world. 1. Tag Rating: Performance: Yesterday: 1.16% 30 Day: 10.63% 1 Year: 33.44% ... Becton, Dickinson and Co. PODD: Insulet Corp: All Stocks. But the company is also organized into seven global business units (GBUs): The renal care GBU generates roughly one-third of Baxter's total revenue. That's a strategy that has worked over the last five years. How? The health care industry is a growing industry. The company's medication delivery products include IV therapies and infusion pumps, while its pharmaceuticals products include cancer drugs and anesthesia products. Actually, the company owns a significant stake in one of its top rivals in the direct-to-consumer market, SmileDirectClub. In particular, U.S.-China trade tensions could present challenges for medical device companies that either already have a presence in China or hope to establish operations there. Here’s how medtech stocks were faring at midday today: Company (Stock) Percent Decline 2/21/20–3/17/20; Abbott's cardiovascular and neuromodulation products segment ranks as the top revenue source for the company. Tags » Medical Device. While there are other insulin pumps on the market, Tandem's newest product, the t:slim X2, has several competitive advantages. When evaluating a medical device stock, research how its products compare to that of its competitors. Medtronic has four operating segments: cardiac and vascular group, minimally invasive therapies group, restorative therapies group, and diabetes group. One key reason for considering buying these large medical device stocks is the worldwide aging demographic trend. 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