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The Five Worst-Performing Medical Device Companies of 2013
June 17, 2013
2 Min Read
While the first half of 2013 has been marked by stock growth across a variety of different industries, some medical device companies have faced the ire of investors since start of the year. In particular, five medical device companies stand out as the worst performers of the year so far, according to the financial-services firm Motley Fool.
One of the companies on the list is Mako Surgical, which has faced a 5% stock price drop so far this year. While sales of the company's surgical products has met expectations, sales of the company's Rio Surgical system have been flat in recent months. While company expects 37% procedural growth for this year, the 2.3% medical device tax could pose a significant problem for the company.
Accuray, a radiation oncology company, has also seen poor performance this year: it's stock is down roughly 10% so far in 2013. The company is now undergoing restructuring.
Given Imaging, an Israeli imaging company, faces a 20% drop so far this year. Given Imaging's flagship product line includes the Pillcam, a device for internal imaging of the body. However, sales of the device have been on decline in over the past year. If the Pillcam Colon, a new version of the device, lands FDA approval this year, shares of the company may rise.
Stock for Edwards Lifesciences has been down 24% this year. The company's flagship device, the Sapien Heart Valve, has not been able to meet sales expectations so far this year. While it is the only product in its class in the United States, it does face competition in overseas markets. If the company can't overcome poor international sales with strong sales in the United States, Edwards could continue to face reduced investor confidence throughout the rest of the year.
Orthofix International, a spinal orthopedic manufacturer, has dropped more than 28% so far this year. While the spinal orthopedics market has been stronger than the cardiovascular market, this company has experienced issues in both Brazil and Europe. While the company states these issues can be solved, the small size of this company and limited cash reserves could prove a liability in the future.
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