What would we do without the experts?
Hot new cardiology products and a steady stream of aging baby boomers with clogged arteries and creaky joints have helped medical device companies outperform the broader market for the past five years.
But some on Wall Street believe much of the big money in medical technology has already been made.
“Med-tech stocks have been fabulous performers over the last three or four years, so expecting a repeat of that is asking a lot,” said Michael Barr, health-care equity analyst for Victory Capital Management.
Barr said the rally was driven by new device-based treatments for congestive heart failure and the rapid adoption of drug-eluting stents, an improved treatment for clogged heart arteries that reduces the need for repeat procedures.
“I don’t really see that kind of big product cycle ahead in the next year,” he said.
Top executives from the world’s biggest medical device companies will discuss their views on future growth at the Reuters Medical Devices Summit in Chicago this week.
Oops. Ominous signs are everywhere: Medgadget will run out of ideas to talk about in a year or so. Definitely, don’t invest in us.