So far, 2015 has been a transition year for the MedTech sector. Positive demographic trends, new product cycles, expansion into emerging markets and widespread consolidation are the key traits that have shaped the growth trajectory of the sector throughout the year.
Notably, MedTech was one of the few resilient sectors during the recent global sell-off. The market volatility that resulted from the oil price slump, downturn in the China economy and FDA’s uncertainty over rate hike did not impact the sector much.
The stability was largely a result of a strong product cycle and continuing innovation across different markets.Robotics, Transcatheter Aortic Valve Replacement (TAVR), Ventricular Assist Devices (VAD), Spinal Cord Stimulator (SCS) are some of the fields that are seeing continual innovation and product launches. MedTech firms are constantly expanding their business through partnerships and acquisitions. The buyout of Sirona Dental by DENTSPLY International (XRAY) and HeartMate developer Thoratec by St. Jude Medical are recent examples of such strategic transactions that has expanded the total addressable market.