Health Devices

By pjain      Published July 18, 2020, 6:53 a.m. in blog Invest   

Health Devices

Health Devices Industry

Instrumentation

EXAS R5 c$97

Exact Sciences Price Target: $130 – developed disruptive innovation in colon cancer screening with Cologuard DNA testing product. Colon cancer is slow growing and easily treated if discovered early enough. The old gold standard, Colonoscopy is expensive, invasive, requires anesthesia and uncomfortable bowel cleansing the night before. Cologuard is a do it yourself home stool DNA based test that is gaining wide acceptance in what could be a $15 billion market. It is growing revenue 70% this year and last year before this week’s US FDA approval and recommendation to lower the testing age to 45 from 50 for healthy individuals, potentially adding another $3 billion to their addressable market.

MDT r5 c101// c89 m118b y=2.3% 41y/ 17%cagr Div=$2

  • stents, etc to continue

  • Largest maker of medical devices

  • Recurring income machine

  • Very DIVERSIFIED - Medtronic holds more than 4,600 patents on products ranging from insulin pumps for diabetics to stents used by cardiac surgeons. Look around a hospital or doctor’s office – in the U.S. or in about 160 other countries – and there’s a good chance you’ll see its products.

Medtronic aims to return a minimum of 50% of its free cash flow to shareholders through dividends and share repurchases.

MDT ?T=$120

  • recent breakout in stock - up 15% for year vs broad market

SEG: Cardiac devices, pacemakers

SEG: Diabetes Insulin Pumps

BDX r5 c243 m66 y1.3% 47y/

  • 5yr EPS 13% expected

  • Focus on Medical Consumables - Infectious treatment

  • makes everything from insulin syringes to cell analysis systems,
  • Looking for growth to be driven by markets outside the U.S., including China.

  • M&A Growth

  • 2017 $24b acq C.R. Bard strong for infectious diseases.
  • 2015 CareFusion, a complementary player

STE R5 c113 m10 y1.2% cagr10% pay 36%

  • last 10yrs $ 8%, 11% eps , FCF +15%,
    • Guidance 14% eps for 2019
  • Acquisitions have boosted the recurring component of the company’s revenues from 50% to 75% and created a more predictable cash flow stream for supporting double-digit dividend growth

  • CORE: Sterilization products and related services to hospitals, pharmaceutical makers and life science labs in more than 100 countries. Rising health care spending, heightened public awareness of the risks posed by hospital infections and greater regulatory scrutiny of sterile procedures in pharmaceutical manufacturing are all trends raising demand for the company’s products.

SYK r5 c212//

BSX r5 c41.4 / topped out

ISRG M60b c500 b250 fpe=40 ps=17x n22% 5$8%e10%

  • Phe 47x vs Med-instruments Industry 32x, PEC is 3.2 vs 2.5x
  • Phe 47x 12/15 fall some - but HUGE 2017 HYPED - flatish 50>200 in 7yrs then jump to 600! 1/24/18 EPS
  • Slowdown in Q4
  • Exp Q4 earns $1b+14.5%~ $3 y16.5%, Full year $3.7b+18%, Eps $11+22%

  • Old Cramer fav Attractive niche in the healthcare sector and there's an upgrade cycle coming for its robots

![High PE, Is growth over?][/media/invest/ISRGmonthly.png]

Intuitive Surgical, which makes robotic surgery a reality with its da Vinci surgical systems. The technology assists surgeons in making procedures less invasive, leading to better patient outcomes. Far from an unproven flyer, Intuitive Surgical already has billions in annual sales and has been consistently wildly profitable -- think gross margins in the 60% to 70% range and net margins in the 20% to 30% range. It's easy to see a growth path forward with increased adoption by surgeons and hospitals and increasing numbers of approved procedures.

Other Health Devices Companies

IDXX - pet health a Cramer fav


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