Medical device companies can be profit-making machines – one manufacturer of magnetic resonance imaging (MRI) machines and other high-tech products is up more than 250% over the past 12 months, for instance.
Most of them make their living by staying on the leading edge of innovation, producing some of the coolest gadgets you can imagine.
And, even better, they can deliver some of the most impressive gains in the bioscience industry to their shareholders.
The good performance of these manufacturers gives you some idea of the potential we're dealing with here.
Just look at these soaring share prices…
These Three Companies Have Easily Beaten the Markets
Boston Scientific Corp. (NYSE: BSX) develops, manufactures, and markets medical devices for the cardiology markets, including stents, balloon catheters, wires, and peripheral embolization devices, among many, many other items. The company also makes products to treat diseases of the digestive, urinary, and pulmonary (lung) systems. Boston Scientific is up 40% over its price this time last year.
Hologic Inc. (Nasdaq: HOLX) makes a broad array of diagnostics products, medical imaging systems, and surgical products for women, such as digital and film-based mammography systems, computer-aided detection (CAD) for mammography, invasive breast biopsy devices, breast biopsy site markers, breast biopsy guidance systems, and breast brachytherapy products (radioactive inserts). Hologic shares are currently up 64% over their value one year ago.
IRadimed Corp. (Nasdaq: IRMD) develops, manufactures, markets, and distributes magnetic resonance imaging (MRI) compatible products in the United States and internationally. It offers non-magnetic intravenous (IV) infusion pump systems and accessories, wireless remote displays/controls under the mRidium name, sidecar pumps, and dose error reduction systems, among many other products. IRMD stock is up a whopping 250% over the past 12 months.
This Is a Big Market – and It's Getting Bigger
Although medical device companies and biotechs that develop new drugs play on similar fields, there are significant differences both in the markets they target and in the regulatory process they undergo. It's important for investors to understand these differences when choosing where to put their capital.
About the Author
Ernie Tremblay has more than 25 years of experience in following and analyzing the latest developments in health, medicine, and related technologies. He understands the FDA approval process, as well as the "hard science" behind new, experimental drugs and the market demand for them - and has a comprehensive grasp of the complex dynamics that determine whether a new drug will be a breakthrough winner, or just another casualty of the FDA approval process.