Medical device company stocks appear to be in a holding pattern as investors wait for new earnings reports.
MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — bumped along last week. It closed at 84.39, about where it had been at the start of the week. The Dow Jones Industrial Average and S&P 500 performed similarly.
The Index as of the end of last week was up 35.8% from 62.13 on March 23 — its lowest point so far during the pandemic. It’s still down –8.6% from its pre-pandemic-crash high point of 92.32 on Feb. 19.
The MedTech 100 Index started today with an uptick but then ended about where it started — even as tech stocks powered the DJIA up 1%.
Investors, for now, appear to have already absorbed worries about the surge in new COVID-19 cases in the South and elsewhere in the United States. Expect more clarity from the markets when the next round of quarterly earnings comes out later this month.
Medical device companies have not been immune from the present recession because the pandemic is causing people to postpone elective procedures — and sometimes even necessary procedures. Health care systems are increasingly focusing on ways to ensure people feel safe going to medical facilities for procedures.
Just last week, abdominal aortic aneurysm (AAA) stent graft developer Endologix (NSDQ:ELGX) announced that it had filed for Chapter 11 bankruptcy protection, simultaneously agreeing to be purchased by its largest creditor.
Medtronic (NYSE:MDT) meanwhile appears to be making good on its officials’ promise to go shopping amid the recession. Bloomberg reported last week that Medtronic has made a bid for Intersect ENT (NSDQ:XENT), the Menlo Park, Calif.–based ear, nose and throat condition treatment developer.
Countries around the world are meanwhile calling on the industry to provide crucial supplies to fight the virus: tests, respirator masks, protective equipment, ventilators, infusion pumps, dialysis machines and more.
Updated from previous July 13 version with the latest results from Index.