Moody's: US medical device outlook positive — 7 expectations & headwinds

Spinal Tech

In the Moody's Investor Service Healthcare – Global 2020 Outlook report, the agency outlined seven key headwinds and expectations for the medical devices market next year.

1. The EBITDA for U.S. medical devices and products is expected to grow 5 percent to 6 percent. New products will likely help with growth.

2. Emerging market demand is expected to grow in the low double-digits. However, GDP growth deceleration is expected to slow overall growth.

3. Unless Congress acts, the medical device excise tax may be reinstated next year.

4. Orthopedic robotic system installation is expected to grow next year, with Stryker leading the space.

5. Moody's expects mergers and acquisitions next year to "remain brisk," citing Stryker's recent $5.4 billion acquisition as a model of what to expect going forward.

6. The acceleration in trade tensions with other countries are a headwind for the U.S. medical device industry, which could result in tariffs for imported components or slower GDP growth.

7. Moody's outlook on the U.S. medical products and devices industry is positive.

 

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