Device industry 2019 outlook beats hospitals, pharma: Moody’s

Dive Brief:

  • The outlook for the U.S. medical device industry in 2019 is positive​, according to a report released Thursday by Moody’s Investors Service. The credit ratings agency said industry success will be aided by earnings growth from new products and solid demand in emerging markets, which is expected to see a double-digit percentage increase.
  • The forecast for earnings before interest, tax, depreciation and amortization is for growth of 4.5% to 5.5% for companies on an organic basis, the credit ratings agency said in the report.
  • Headwinds on the horizon for the industry include the potential for rising trade tensions and the reinstatement of the medical device excise tax in 2020, Moody’s said.

Dive Insight:

Moody’s sees the U.S. medical device industry as a bright spot in healthcare in the year ahead. In contrast to the positive outlook for devices, the credit ratings agency gave a stable outlook to the global pharmaceuticals and U.S. for-profit hospital industries.

Healthcare will represent a rising portion of the gross domestic product for most countries in 2019, but with that growth will come severe budgetary pressures and efforts to control spending. Payers will continue to focus on cost-effectiveness and value as a result.

Medical device makers will see mid-single-digit revenue growth driven by product innovation across most companies and categories, the agency said. Sales in emerging markets will continue to grow more than 10%.

By Susan Kelly | MEDTECHDIVE

Image Credit: Depositphotos


About Peter Coffaro 510 Articles
Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.

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