The not-so-secret ingredient necessary for growth in medtech is innovation. Unless new prosthetics and instruments are differentiated from their predecessors, clinicians just won’t look at them because they are inherently resistant to change without an incentive. “The advantage of a new technology, a new product, a little better mousetrap or a lot better mousetrap, is you will drive higher pricing,” says Analyst and Managing Director William Plovanic of Canaccord more »
For a small cap spinal-orthopedic device maker NuVasive (NASDAQ: NUVA), the journey from being touted as the "perfect stock" by analysts to being written off by the same people must have come as a hard blow. The disappointing third quarter earnings announced last Wednesday has not only invited concern among shareholders, but also cast a shadow on the company’s future prospects.
Not Far from Target but Still a Miss more »
Recently, medical technology company, Medtronic (NYSE: MDT)announced a step toward the development of an artificial pancreas. It filed the final module of its Pre-Market Approval (PMA) application with the US Food and Drug Administration for the MiniMed 530G system featuring Threshold Suspend Automation. If approved, the MiniMed 530G will be the only integrated insulin pump and continuous glucose monitor in the US that automatically suspends insulin delivery if the more »
George S. Mack, The Life Sciences Report
Forget big medtech and find your growth plays in niche companies.
A decade ago medtech was in its heyday. Baby boomers were already feeling the discomforts of osteoarthritis and other age-related diseases, and they wanted to be active longer. Device and instrument developers could innovate and get products through the FDA and market them in the U.S. where dynamic pricing power would more »
Implanted medical devices are one of the most profitable businesses of the U.S. healthcare industry. In the U.S., about $37B is spent annually on the major orthopedic device procedures. These are mostly artificial knee implants, followed by repairs of bone fractures, spinal fusions, and artificial hip implants.
Knees are the most frequently replaced joint in the body. The success rate is high: Over 90% of total knee replacements more »