It's the opposite scenario for Class II devices. But medical device makers should see business—and their stocks—pick back up. 1. The pharmaceuticals segment generates roughly half of J&J's total revenue. This unit primarily focuses on peritoneal dialysis and hemodialysis products. 6 spot. It's possible that a medical device company has a strong financial position and solid competitive advantages but weak growth potential. More than 6 million procedures have been performed using the da Vinci, with around 1 million of those procedures occurring just last year. Targeted access to domestic medical device stocks 3. Factors such as diet and lack of physical activity are contributing to this increase. In addition to the da Vinci system, Intuitive also now has another robotic surgical system on the market. The company also sells iTero intraoral scanners that dental professionals use to create 3D images of patients' teeth, which are then used to development Invisalign treatment plans. Medical device makers that make cardiovascular and diabetes care products could especially benefit from this trend. Here's what you need to know about the 10 biggest medical device stocks on the market right now. What are the Top Medical Device Companies in the World in 2020? All market caps as of July 15, 2019. The 10 biggest medical device makers, on the other hand, all have thousands of employees and make billions of dollars in revenue annually. This includes Medical segments, consisting primarily of equipment used to clean and process devices used in endoscopy procedures. The medsurg segment is Stryker's biggest moneymaker, generating around 44% of total revenue in 2018. This segment primarily markets implants used in hip and knee joint replacements and trauma and extremities surgeries. The company launched its ION system after receiving FDA clearance in February 2019. The cardiovascular segment contributed nearly 39% of Boston Scientific's total revenue in 2018. Phase 3 trials follow phase 2 trials, and are the ultimate stage of clinical trials for new drugs or medical devices. Medtronic has four operating segments: cardiac and vascular group, minimally invasive therapies group, restorative therapies group, and diabetes group. Since 2014, 8 of the 10 biggest medical devices have outperformed the S&P 500. Several of the 10 biggest medical device stocks focus their efforts on areas other than only medical devices. Each of the 10 largest medical device companies develops complex products that require approval by the FDA in the U.S. and by other countries' regulatory agencies. The medical device industry should benefit from aging demographic trends for years to come. Illumina should deliver strong growth as demand for genomic sequencing expands, especially in the areas of cancer diagnostics and treatment. Stock Advisor launched in February of 2002. 1 spot. The medical device firms below are listed in order of market cap size, from largest to smallest. Exposure to U.S. companies that manufacture and distribute medical devices 2. Like stocks in nearly every industry, these medical device stocks could be pulled down by macroeconomic issues such as an economic recession. With new products on the way to treat more difficult cases, Align should be able to expand its addressable market significantly as well. The stocks of companies with medical devices that offer significantly more functionality than rivals or provide significant total cost advantages over rivals are more likely to be successful. The medsurg segment sells endoscopy products as well as urology and pelvic health products. The company has been a leader in the CGM market for several years. Competitive advantages 3. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. This segment focuses on structural heart devices, including transcatheter aortic valve replacement (TAVR) and percutaneous coronary intervention (PCI) products. Examples of medical devices include pacemakers, artificial joints, … Investing in any stock involves risks. There are three primary things you should evaluate before buying a medical device stock: The most important aspect of a medical device company's financial position to consider is its profitability. Medical device companies develop medical devices and surgical instruments to diagnose, treat, or prevent various medical conditions. For one thing, it integrates with DexCom's G6 CGM system. This segment sells a wide lineup of products including intravenous (IV) catheters, syringes and needles, infusion pumps, and medication dispensing systems. This definition includes any "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory" that is used in diagnosing, curing, preventing, or treating a disease. TAVR is by far the biggest moneymaker for Edwards Lifesciences, contributing roughly 60% of total revenue. SAN FRANCISCO, Dec. 7, 2020 /PRNewswire/ -- ValGenesis, Inc., a market leader in Enterprise Validation Lifecycle Management Systems (VLMS), announced that a global medical devices company … Finance, company regulatory filings. Conformis (NASDAQ:CFMS) Market cap: US$112 million; current share price: US$1.63; year-to-date gain: 359.66 percent. Only 6% of them achieve their desired outcomes, presenting a large potential opportunity for DexCom. Two of these large medical device stocks stand out as particularly promising investing candidates: Illumina and Intuitive Surgical. But for many medical device stocks, 2018 was a fantastic year, with at least a dozen medical device stocks racking up gains of more than 25%. The BD interventional segment contributes close to one-fifth of the company's total revenue. Financial position 2. Medtronic is the third-largest medical device stock in terms of market cap. When evaluating a medical device stock, research how its products compare to that of its competitors. With a definition that expansive in scope, you'd expect that there would be a lot of companies making medical devices. 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 consequences. 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. Some devices that pose little risk to patients only have to be registered with the FDA without the requirement for a review. Align Technology and Intuitive Surgical enjoyed virtual monopolies for several years, but now both companies face new rivals. There are three primary things you should evaluate before buying a medical device stock: 1. Tandem has a big growth opportunity in the U.S. 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 makes more than 70% of its total revenue from recurring sources. Cumulative Growth of a $10,000 Investment in Stock Advisor, Five of these large medical device stocks. All medical devices in the U.S. are regulated by the FDA. Let's conquer your financial goals together...faster. Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. These companies are organized into three business segments: medical devices, consumer, and pharmaceuticals. Strong revenue and earnings growth has been a common theme in Align's quarterly updates, although its earnings growth trajectory has slowed somewhat recently. Here's what you need to know about the top medical device stocks for 2019. This wide diversity is reflected in the U.S. Food and Drug Administration's (FDA) definition of a medical device, which includes any "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory" that is used in diagnosing, curing, preventing, or treating a disease and isn't a pharmaceutical drug. You might look back at 2018 as a dismal year for stocks. Here are five top medical devices stocks to consider buying in 2019: Data sources: Yahoo! How? The growth prospects for Abiomed continue to look very good. The company's medication delivery products include IV therapies and infusion pumps, while its pharmaceuticals products include cancer drugs and anesthesia products. 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. This segment markets medical devices including grafts, angioplasty balloon catheters, stents, and urinary catheters. The medical stock leads the Medical-Systems/Equipment industry group with a nearly perfect Composite Rating of 98. Robotic surgical systems like da Vinci help reduce these issues. They all have solid competitive advantages. Products marketed by these units include parenteral nutrition therapies, medical devices used in surgical procedures, and continual renal replacement therapies. Since then, Intuitive Surgical has rolled out four generations of da Vinci robotic surgical systems. See you at the top! The global high-tech medical device market is projected to grow at a CAGR of 29.2% through 2026 to reach $252 billion, according to Research and Markets. Five of these large medical device stocks more than doubled the return of the popular index. 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. Stryker is another company that makes all of its revenue from medical devices. Some of these medical device companies are large and very profitable. The FDA reviews these PMA applications closely, and sometimes enlists the help of outside experts in the review process. 3. The market caps, a measure of the value of all stocks available for that company, are … The medical device industry is constantly changing, with new and improved technology regularly introduced. Many up-and-coming medical device makers don't yet have profitable operations. These large players in some cases compete against each other. Intuitive Surgical should also be a long-term winner as more minimally invasive procedures are performed using robotic surgical systems. About this page + Medical device manufacturers are companies that design and supply pharmaceuticals, medical tools, surgical supplies and related products. 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. Several of the companies also could be hurt if global trade issues aren't resolved. Abiomed, Align Technology, DexCom, Intuitive Surgical, and Tandem Diabetes Care should be in great shape to succeed in 2019 and beyond. The company is in great financial shape. 5 Top NASDAQ Medical Device Stocks of 2019. Story continues Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. Abbott Laboratories. This CGM system will be fully disposable and cost-effective for patients and payers. The company's technology played an important role in helping reduce the cost of mapping a human genome (the complete set of genes) from $200,000 in 2009 to less than $1,000 today. Beyond the aging populations across the world, there's also likely to be a significant increase in chronic conditions among individuals who aren't as old. The company reached profitability in 2018 and appears likely to keep the earnings flowing. The system also integrates with leading insulin pumps, smart insulin pens, and insulin patch pumps. Most of the 10 biggest medical device makers market products that fall into this last category. Data sources: Yahoo! And while they're all large-cap stocks (with market caps of $10 billion to $200 billion), the three biggest stocks on the list have combined market caps (shares outstanding multiplied by the share price) that are much greater than the combined market caps of the other seven big medical stocks. Let's conquer your financial goals together...faster. Illumina is the leading maker of genomic sequencing systems. While some competitors have entered the clear aligner market, Align Technology isn't too worried about them. For Q3 2020, Insulet reported a … These products include Edwards' transcatheter valve repair systems. Sales have soared for DexCom, with an impressive CAGR of 44% from 2011 through 2018. The BD medical segment generates more than half of the company's total revenue. Many surgical procedures still have way too many complications resulting from differences in the skill of surgeons. Class I devices usually only require registering with the FDA, and there's no approval process. The company reported cash of around $450 million in its latest quarterly update and the company has zero debt. They belong to the Medical-Systems/Equipment industry group and, respectively, have Composite Rating of 95 and 98. Tandem also is targeting another 3 million people with type 1 diabetes who live outside the U.S. This reduces the amount of money available to spend in other areas like reinvesting in the business. All medical devices in the U.S. are regulated by the FDA. Other highly rated medical stocks include include Idexx Laboratories and Hologic . And these markets continue to grow as the country's populations age. Despite these risks, the future appears to be bright for the medical device industry -- and particularly for companies with high-tech medical devices. As you might expect with such a wide range of products, the medical device industry is big. Bard. That's the kind of competitive advantage that investors love. That's a strategy that has worked over the last five years. The regulatory process for Class III devices is more involved. But these stocks have two key things in common. Becton, Dickinson and Company. Also, the pump's Basal-IQ technology helps predict when insulin levels are about to move outside of thresholds before they do. DexCom focuses on developing and marketing continuous glucose monitoring (CGM) systems for individuals with diabetes. Medical devices sold by this segment include blood collection systems, blood culturing systems, and molecular testing systems. The FDA requires clinical testing to demonstrate safety and effectiveness for medical devices that carry the most risk for patients. offices and other medical facilities. Failure to obtain the necessary approvals to go to market could negatively impact these companies' growth prospects. When it comes to medical device stocks, those risks are likely to take on certain attributes. Even though Align has been tremendously successful, there remains a huge untapped market. Here’s how medtech stocks were faring at midday today: Company (Stock) Percent Decline 2/21/20–3/17/20; The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Other devices that involve moderate levels of risk require premarket notifications to be reviewed by the FDA. Returns as of 12/09/2020. Johnson & Johnson isn't just the biggest medical device stock on the market; it's the biggest stock in the entire healthcare sector. And think medical devices. 22, 2020 at 12:14 p.m. When a company takes on additional debt, its interest expenses increase. There's no way to know whether medical device stocks will perform as well in 2019 as they did last year. The company's medical device segment makes most of its revenue from surgical products, with growth fueled primarily by wound care and advanced sterilization products. Abiomed focuses on medical devices for treating cardiovascular diseases. The health care industry is a growing industry. Investors can expect more advances from Intuitive in the future. The company's NovaSeq system, introduced in 2017, continues to drive much of Illumina's growth as existing HiSeq customers convert to the system and new customers begin performing genomic sequencing. On the other hand, medical devices that use advanced technology often have little competition, can be very expensive, and in turn generate high profit margins. This group includes the company's HemoSphere advanced monitoring platform. Intuitive Surgical focuses on developing and marketing robotic surgical systems for use in minimally invasive surgery. The company really doesn't have a direct competitor in this market. Copyright, Trademark and Patent Information, Medical devices focusing on cardiovascular, neuromodulation, and diabetes care; diagnostics; nutritional products; pharmaceuticals, Medical devices focusing on cardiovascular, diabetes care, minimally invasive therapies, and restorative therapies, Medical devices focusing on orthopedics, medical-surgical, and neurotechnology and spine, Medical devices focusing on medication delivery and management, diabetes care, diagnostic systems, surgery, peripheral intervention, and urology, Medical devices focusing on cardiovascular, medical-surgical, electrophysiology, and neuromodulation, Medical devices focusing on medication delivery, renal care, and surgery; pharmaceuticals, Medical devices focusing on heart valves and advanced monitoring. The cardiac and vascular group contributes around 38% of Medtronic's total revenue. Around 27% of BD's total revenue stems from its BD life sciences segment. 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. Edwards Lifesciences has at least one thing in common with Baxter International: It's organized into geographical rather than product segments. Covid-19 lockdowns caused a big drop in surgical procedures, as patients put off elective surgery. Medical devices focusing on orthopedic, surgical, cardiovascular, neurovascular, diabetes care, and eye health markets; pharmaceuticals; consumer healthcare. 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. Are you an investor looking for stocks that beat the S&P 500 index? However, the claims later proved to be false. It was initially touted as a breakthrough technology company, with claims of having devised blood tests that required only very small amounts of blood and could be performed very rapidly using small automated devices the company had developed. The former markets products including surgical staples and meshes used in hernia repair, while the latter markets products such as bone grafts and robotic surgical systems added with the 2018 acquisition of Mazor Robotics.