The global economy continues reeling under the impact of the COVID-19 pandemic. The sudden spike in the number of cases from the start of 2021 across the United States and several European nations evidently point toward a renewed phase of the coronavirus. The imminence of a full-fledged lockdown and the cloud of uncertainty over the efficacy of vaccines have kept investors tense so far.
Per an IMF.org report, in April, IMF raised its global growth forecast to 6% for 2021 and 4.4% for 2022, banking on additional fiscal support in a few major economies and the expectation of a vaccine-aided recovery during the second half of 2021. How Has MedTech Been Faring?
Several global MedTech majors started gaining momentum from the second half of 2020, courtesy of developments like a plethora of COVID-diagnostic test launches and their regulatory clearances, the rapid consumer adoption of digital healthcare options like telemedicine and remote patient-monitoring tools. Also, with the economy opening up, the MedTech sector rebounded on non-COVID product portfolio expansion and emergency medical services.
Women Health Sector Growth Continues Amid COVID
The rise in women’s contribution to the socio-economic sector across the globe made the need for their well-being indispensable. The surge in the number of women professionals including those of nurses and other female frontline workers amid the continued pandemic and the need for paying attention to their health for retaining work efficiency drove growth in this market.
Amid this prevalent public health crisis, cases of pregnancy are particularly necessitating special care. The buoyancy in demand for women health solutions to address different medical challenges like infertility, postmenopausal osteoporosis, gynecologic cancers, polycystic ovary syndrome, reproductive health complications is consistently adding momentum to the market. Diagnostic imaging tests, bone densitometry, ovulation testing and biopsies among others in the wake of the coronavirus outbreak have been aiding the expansion of the women healthcare market for a while now.
3 Stocks to Keep an Eye on:
The following are the three women healthcare MedTech stocks with a Zacks Rank # 2 (Buy) or 3 (Hold), which have been performing well lately.You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Myriad Genetics ( MYGN Quick Quote MYGN - Free Report) : In March 2021, this presently Zacks Rank #3 company announced the receipt of additional reimbursement in Japan for its myChoice Diagnostic System. Notably, the test aids in identifying patients with advanced ovarian cancer who are eligible for first-line maintenance treatment with Lynparza (olaparib). This reimbursement for use in first-line treatment is in addition to the already existing reimbursement for the fourth-line treatment of ovarian cancer. In January, Myraid Genetic inked a strategic partnership with Illumina (ILMN) to create a kit-based version of the myChoice companion diagnostic test for the international market. This decision will ensure that more women have access to advanced therapies in their fight against ovarian cancer. In the same month, the company announced the receipt of reimbursement for its BRACAnalysis Diagnostic System in Japan.
Over the past year, shares of the company have soared 86.8% compared with the
industry’s rally of 4%. The estimated EPS growth rate over the next five years is 18% compared with the industry’s 16.4%. Hologic, Inc ( HOLX Quick Quote HOLX - Free Report) : This currently Zacks Rank #2 company has been making impressive progress in its Breast Health arm over the past few months. The company launched SuperSonic MACH 20 ultrasound system in January 2021, thus expanding its ultrasound portfolio. In the same month, Hologic announced the availability of 3D ultrasound imaging on the SuperSonic MACH 30 and 20 ultrasound systems in Europe.
Also in February 2021, Hologic acquired Biotheranostics, a privately held commercial-stage company providing molecular diagnostic tests for breast and metastatic cancers. This acquisition will enable it to foray into the large and fast-growing oncology mark. A notable buyout that Hologic completed in January is that of SOMATEX Medical Technologies GmbH, a well-known name in the biopsy site markers and localization technologies space.
Over the past year, the stock has surged 79% compared with the
industry’s rally of 29.9%. The estimated EPS growth rate over the next five years is 15.4% compared with the industry’s 14.6%.
Becton, Dickinson and Company ( BDX Quick Quote BDX - Free Report) : For fiscal 2021, this presently Zacks #2 Ranked company is set to launch its new BD COR in the United States with its BD Onclarity HPV assay constituting extended genotyping, which is developed to enhance the diagnosis and treatment of cervical cancer. With BD COR, BD is going to tap the high-throughput molecular testing market with a very unique, fully automated sample-to-answer platform in a highly differentiated assay. The system attained the CE mark and has been seeing favorable customer reception since its launch in Europe.
In the past six months, shares of the company have inched up 1.9% against the Zacks Medical sector’s decline of 3.7%. The estimated revenue growth rate over the past five years has been 10.7% compared with the
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