"Be Patient": Advice on Shifts in MedTech Markets
By Ilsa Webeck, Managing Director at MedTech Strategies
While we would have all liked to start the new year with good news for an upturn in the medtech markets, we heard at New England Healthcare Executive Network (NEHEN) meeting that patience is still necessary. Raj Sharma, Founder, Sharma Group and Craig Bijou, Equity Research Analyst for Medical Devices, Bank of America Securities, presented their perspectives on the trends in the market and outlook for the future at the session titled “Stock Market Outlook for 2024: Focus on Life Science & Medical Device Sectors.”
Raj Sharma his thoughts on the volume of innovation and productivity, which is up overall, and how he is bullish on the growth in the market. We have seen that the “cash is king” recently but the cost of capital should be shifting due to movements by the Federal Reserve in 2024. The future should look much different.
Craig Bijou discussed the dynamics of the medtech and healthcare sector overall underperforming in the recent past. Some of the pressure has come from the promise of GLP-1 drugs which may have a significant impact on treatments for conditions associated with diabetes and obesity, therefore applying some downward pressure on the space. He also sees that the forecasted interest rate stability will feed the appetite for a renewed investment in medtech. Investors have been sitting on too much cash, waiting for the right time to review new assets and tell new growth stories.
To close the event, a question and answer session was led by Rick Williams, Managing Director, Williams Advisory Partners, where the discussion continued highlighting the dynamics leading to a slow recover from the pandemic and optimism for the future. While patience is still needed as we move through 2024, the bottom line is that 2025 and beyond will have a light at the end of the tunnel.
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Ilsa Webeck, Managing Director and Founder of MedTech Strategies LLC works with medical technology companies to assess commercial viability and provide structured research methodologies to support due diligence and market intelligence needs of companies of all sizes.
New England Healthcare Executive Network (NEHEN) is a member-focused community of senior healthcare executives representing market verticals including medical devices, biotechnology, pharmaceuticals, health IT and healthcare providers. The members are professionals committed to building relationships, sharing knowledge, and gaining insight into the key issues and opportunities affecting the industry.
