Mid- and small-cap medtechs find themselves at the mercy of government responses to the Covid-19 pandemic.
The overall rate of device approvals in 2019 is holding steady on last year – but the types of approvals are different.
Investor excitement about smaller medtechs’ technology is unchecked, but these groups will have to deliver on their promises.
The US FDA granted seven approvals in two days last week, including an eagerly awaited thumbs-up for Novartis’s gene therapy Zolgensma.
The fastest share price growth in medtech is always recorded by small-caps, but Tandem reached a new extreme last year.
Many small groups are up thanks to takeover speculation, and this may end up being self-defeating.