Medical Devices for the Aging Body

Nipro's U.S. unit has completed enrollment in the GREAT trial for the Golazo Peripheral Atherectomy System, a clinical milestone the company says could matter for long-term sentiment. The Japanese medical equipment maker's shares trade at ¥1,319, with a one-year total shareholder return down 9.73% after a weaker 90-day share price return of 14.71%, though investors who held through the last three years still see a 30.60% total shareholder return. Nipro trades on a price-to-earnings ratio of 15.6x, below the JP Medical Equipment industry average of 16x, the peer average of 19.4x, and an estimated fair P/E of 18.8x, while recent earnings growth of 144.4% over the past year and higher net profit margins of 2.1% compared to 0.9% last year give context for the mid-teens multiple. The SWS discounted cash flow model, however, sends a different signal, with the share price of ¥1,319 against an estimated future cash flow value of ¥938.68 suggesting the stock screens as overvalued.

Stryker Corporation said on October 6 that Kevin Lobo will become executive chairman and Spencer Stiles will become chief executive, both effective January 1. The succession comes with the shares at around $275 on October 7, down 1.01% on the day and 24.85% lower over twelve months, and 30% below their 52-week high of $392.55. The handover is not a response to the operating numbers: revenue grew 9.40% in the most recent quarter, earnings grew 44.30%, and free cash flow of $4.70 billion exceeded $3.73 billion of net income. The stock trades at 28.84 times trailing earnings and 16.49 times forward, a gap that shows the market expects earnings to rise sharply but will not pay for the increase in advance. Spencer Stiles inherits that gap on January 1, and the number to watch is operating margin, because 27.02% is what the new chief executive has to defend first.

Medacta Group's modeled fair value has been trimmed from CHF 167.98 to CHF 155.17, a moderate reset to the price target tracked by investors. The revision reflects a more cautious debate over balancing the company's long term growth story against investment needs and valuation risk. Berenberg reaffirmed a positive stance while trimming its price target to CHF 180 from CHF 185, still above the revised fair value. Deutsche Bank initiated coverage with a Hold rating and a CHF 121 price target, citing growth normalization and the capital required to sustain future expansion. The updated model raised the revenue growth assumption from 10.01% to 13.52%, lowered the net profit margin assumption from 14.46% to 13.19%, adjusted the future P/E from 29.73x to 27.86x, and moved the discount rate from 4.42% to 4.46%.

Johnson & Johnson is expected to report quarterly earnings of $2.66 per share in its forthcoming report, a decline of 5% year over year, on revenues projected to reach $25.37 billion, up 5.8% from the same quarter last year. Over the last 30 days, the consensus EPS estimate for the quarter has been revised downward by 0.3%. Within the company's Innovative Medicine segment, analysts project worldwide sales of $16.59 billion, up 6.6%, including $708.49 million for CARVYKTI, up 35.2%, and $612.16 million for SPRAVATO, up 33.4%. In MedTech, the consensus estimate for worldwide Orthopaedics Trauma sales stands at $831.48 million, up 4.9%, while worldwide Orthopaedics Spine, Sports & Other is projected at $700.77 million, up 0.4%, and worldwide Surgery Advanced at $1.17 billion, up 0.7%. International sales are expected to reach $10.77 billion, up 4.7%, and organic sales growth is projected at 6.8% versus 5.4% a year ago.

AngioDynamics said Eric Honroth will become its president and chief executive officer and join the company's board of directors, effective Nov. 2, 2026. Honroth will succeed Jim Clemmer, who will step down from the board on Nov. 2 and remain with the company in a consulting role to support the leadership transition. Honroth brings more than 20 years of medical device and life sciences leadership experience and most recently served as global president, life science at Getinge.

Boston Scientific has appointed Joseph M. Fitzgerald as executive vice president and chief operating officer, effective January 1, 2027, and will reorganize its global operations into three reportable segments: Interventional Therapies, Rhythm Solutions, and MedSurg. Fitzgerald is expected to oversee the transition to the new segment structure as part of a broader operational realignment at the medical device maker, which has a market value of about $61.1b. The company's refreshed narrative leans on about US$500m of planned annual cost savings by 2029, integration of deals like Penumbra, and support for areas facing softer trends such as Electrophysiology and WATCHMAN. The first real check on whether the reset is working likely comes in 2027 reporting once the three segments go live, when investors can watch how Boston Scientific discloses segment-level margins and whether management ties the early portion of the US$500m restructuring target, along with Penumbra integration progress, directly to Interventional Therapies and Rhythm Solutions performance.

Johnson & Johnson's MedTech segment, which accounts for around 36% of the company's total revenues, is expected to perform better in the second half of 2026 than in the first half, with the Zacks Consensus Estimate for the segment standing at $8.78 billion. The unit delivered mixed results in the second quarter, as competitive pressure in electrophysiology and lower Abiomed sales offset continued double-digit growth at Shockwave, and J&J now expects only modest Abiomed growth in the second half. The company said overall procedure volumes were stable in the second quarter with no broad-based slowdown, and its Surgery, Vision and Orthopedics businesses are likely to have continued accelerating in the third quarter. J&J continues to face headwinds in China from the government's volume-based procurement program, with those pressures expected to persist in the second half. The Zacks Consensus Estimate for 2026 earnings has declined from $11.59 to $11.54 over the past 60 days, while the 2027 estimate has fallen from $12.80 to $12.64 per share, and J&J carries a Zacks Rank #3 (Hold).

The US FDA has approved Edwards Lifesciences' AUTUS surgical pulmonary valve for pediatric patients with congenital heart disease. AUTUS is the first such pulmonary valve approved for children that can be expanded as a child grows, with the expansion performed through a transcatheter procedure. The approval was based on a study that found no patients had device-related complications after 30 days and no AUTUS valve reinterventions through six months. In patients with one-year follow-up, all showed consistent outcomes, with a right ventricular outflow tract mean gradient of 40 mmHg or less, less than moderate pulmonary regurgitation, and no valve reinterventions.

Integer Holdings Corporation has entered into a definitive agreement to be acquired by affiliates of Kohlberg Kravis Roberts & Co. L.P., with each eligible share convertible into the right to receive $127 in cash at closing. The transaction, announced on Aug. 2, 2026, is not subject to a financing condition, and the buyer has obtained equity and debt financing commitments; completion remains subject to customary conditions, including approval by holders of a majority of outstanding shares and required regulatory clearances. The agreement provides for a $307 million parent termination fee in certain circumstances involving a buyer breach or failure to complete the transaction when required, and if completed, Integer Holdings would become a wholly owned subsidiary of the buyer and its shares would be delisted from the NYSE. The medical device outsourcing manufacturer, which has a market capitalization of $4.3 billion, reported mixed second-quarter 2026 results, with revenues declining 2.6% year over year to $464.1 million and adjusted earnings per share rising 3.2%. Cardio & Vascular sales fell 2% to $280.3 million on lower-than-expected adoption of two new electrophysiology products, while Cardiac Rhythm Management & Neuromodulation sales rose 1% to $173.7 million, and gross margin declined to 24.3% from 27.1% a year earlier. The Zacks Consensus Estimate for third-quarter 2026 revenues is $457.3 million, indicating a 2.2% decline from the year-ago quarter, with earnings pegged at $1.65 per share, implying a 7.8% decline.

BofA Securities raised its price target on Johnson & Johnson to $278 from $263 while keeping a Neutral rating, lifting its forecasts for Icotyde and updating its model for recent in-process research and development charges. The new target applies 22x BofA's 2027 earnings estimate excluding those charges, up from 20.33x, which the firm tied to a sector re-rating for defensive stocks. For the third quarter, BofA expects sales of $25.5 billion, in line with consensus, and EPS of $2.53, 12% below the Street, with J&J having disclosed $0.64 of in-process R&D dilution for 2026, mostly falling in the third quarter. BofA models 6% revenue growth, with Pharma up 7% and MedTech up 4%, and points to IQVIA data showing four-week rolling prescriptions up 50% year over year for Tremfya in inflammatory bowel disease and 60% for Caplyta in major depressive disorder. Separately, J&J is reportedly in talks with Apollo Global Management over a potential sale of its orthopedics unit, which could be valued at nearly $20 billion.

Smith+Nephew has launched the EVOS PELVIC Plating System, the newest addition to its EVOS plating platform, designed for pelvic and acetabular fracture management. The all-in-one system combines pre-contoured plates for the posterior wall, quadrilateral surface and pubic symphysis, locking and non-locking utility plates, a new cannulated screw system built specifically for the pelvis and acetabulum, and specialized instrumentation to support exposure, fracture reduction and implant placement. Nate Folkert, President of Smith+Nephew Orthopaedics, called the launch an important milestone in the continued expansion of the EVOS Plate portfolio, while John Rawlinson, Senior Director of Global Marketing, said the brand reflects the company's mission to drive the Evolution of Osteosynthesis. Design surgeon Dr. Reza Firoozabadi of the University of Washington and Harborview Medical Center said the system was built to address the full spectrum of injuries, from straightforward to the most complex pelvic ring and acetabular fractures, including elderly patients with compromised bone quality. The EVOS PELVIC System is currently available in the United States, with availability and launch timing in other markets varying, and will be previewed at Smith+Nephew's booth #301 during the 2026 Orthopaedic Trauma Association Annual Meeting in Nashville, Tennessee from September 23 to 26.

MiniMed Group reported first-quarter fiscal 2027 results for the period ended July 31, 2026, with worldwide net sales up 16.6% as reported and 15.8% organically to $843 million, U.S. net sales up 13.1%, and management raising full-year organic revenue growth guidance to approximately 10.5% from 10%. Nine analysts raised their price targets after the print, with BofA lifting its target to $28 from $24, Mizuho to $26 from $21, BTIG to $28 from $25, and Wells Fargo's Larry Biegelsen to $26 from $22, all citing pipeline milestones landing ahead of schedule, including MiniMed Fit's FDA submission with a full U.S. launch expected summer 2027, a CE Mark for MiniMed Flex, completed enrollment in the Vivera closed-loop trial, and IDE approval for the next-generation extended wear sensor. Operating detail supported the optimism, with new pumps sold in the U.S. up more than 20% year-over-year, new prescribers writing for Flex up 24%, competitive conversions from rival pump makers doubled from a year ago, and the global CGM attachment rate reaching 69% from 64%. The cash flow picture was weaker: adjusted EBITDA margin was just 9.9% and free cash flow was negative $90 million, of which $111 million came from separation and standup costs tied to building MiniMed into an independent company, without which free cash flow would have been positive $21 million, while $8 million in pulled-forward spending and a $12 million currency remeasurement charge together cut about 230 basis points from EBITDA margin. Only 17 of the 160 transition service agreements with Medtronic have been exited, most of the rest are not expected to wrap up until sometime in calendar 2027, and an extra week in the fiscal calendar added 4 to 6 percentage points to reported growth that management said will normalize out next quarter. Hedge fund ownership rose to 26 funds from 22, while short interest sits at 28.25% of float.

ResMed Inc. reported fourth-quarter fiscal 2026 revenue of $1.5 billion, up 9% year over year, driven by strong demand for sleep devices, masks, and accessories. Americas device revenue rose 6%, total Americas Sleep and Breathing Health revenue rose 8%, and Americas masks and other revenue increased 10%. On September 15, RBC Capital upgraded ResMed stock to Outperform from Sector Perform and raised its price target to $262 from $244, expecting high single-digit earnings per share growth over the next three years and assuming Philips Respironics returns to the US market in fiscal 2028. The company's fiscal 2027 revenue guidance of $5.75 billion to $5.85 billion fell short of analysts' expectations of $5.92 billion, and Astral ventilator sales remain suspended following a device correction the FDA classified as a Class I recall. Hedge fund interest held steady at 45 funds in the second quarter, with Arrowstreet Capital raising its stake by 151% to approximately $220.16 million and AQR Capital Management increasing its position by 161% to approximately $177.14 million, while short interest stood at 9.06% of shares outstanding as of August 31.

IR-MED Ltd. and Dice Technologies Co., Ltd. announced the signing of a letter of intent to cooperate on the evaluation, research support, localization, commercialization preparation and regulatory preparation of IR-MED's PressureSafe medical device in Japan. The LOI is not intended to create legally binding obligations between the parties, except for provisions relating to confidentiality and data protection, intellectual property rights, and device management, return and disposal. The collaboration targets a Japanese market that includes more than 36 million people aged 65 and older, approximately 8,000 hospitals, 13,600 long-term care facilities, and 16,000 or more home-visit nursing stations. Dice Technologies, based in Osaka, will lead and coordinate the evaluation program in Japan, leveraging a nationwide footprint serving over 1,000 clinics, and will support Pharmaceuticals and Medical Devices Agency consultation preparation while integrating PressureSafe data into its CareNest platform and domestic Electronic Health Records. Clinical research and evidence-generation activities are expected to include cooperation with the Department of Plastic Surgery at Kobe University, subject to required ethics review, institutional approvals and separate written arrangements. IR-MED's PressureSafe combines infrared spectroscopy with a proprietary algorithm to support assessment of early signs of pressure injuries, and the partners intend to evaluate it in hospitals, long-term care facilities and home healthcare settings.

Apollo Global Management is reportedly in non-binding talks to acquire Johnson & Johnson's orthopaedics business, DePuy Synthes, for nearly $20bn, according to Bloomberg, which first reported the development. Anonymous sources said an agreement could be reached within several weeks, though the talks could also end without a deal or attract another bidder, and DePuy Synthes has drawn interest from several private equity companies. If signed, it would be Apollo's largest healthcare deal to date. The talks come as J&J works to separate itself from DePuy Synthes following its 2025 spinout announcement; the unit posted $9.3bn in sales last year and was created through J&J's $21bn takeover of Swiss company Synthes in 2012, which was combined with its own DePuy business. GlobalData medical devices research director Andrew Thompson called a $20bn deal a low end value, noting J&J bought Synthes in 2011 for $19.7bn and DePuy was a $3.5bn acquisition from Roche in 1998, and said a rival bid would likely come from another private equity group or consortium rather than Stryker or Zimmer due to regulatory hurdles. Neither J&J nor Apollo immediately responded to a request for comment.

Apple has announced its most advanced health and fitness experience yet, introducing the Apple Watch Series 12 and Apple Watch Ultra 4 with a new Health Sensing System that delivers the most accurate heart rate sensing in a wearable, along with a redesigned Health app powered by Apple Intelligence. The new watches measure heart rate every five seconds and HRV as often as every five minutes, 24 times more frequently, and introduce a readiness score from 0 to 10 with recommendations like Recover or Go For It. The redesigned Health app, coming later this year with iOS 27, adds an Insights tab and a Longevity tab featuring Health Age, which compares users' metrics to their chronological age. Users can also schedule and purchase lab tests covering over 50 biomarkers for $119 at approximately 2,000 Quest Diagnostics locations in the U.S., and new movement assessments use the iPhone camera and Apple Watch for at-home evaluations. The watches also support perimenopause and menopause tracking, and watchOS 27 will be available starting September 14 for Apple Watch Series 9 or later, Apple Watch SE 3, and Apple Watch Ultra 2 or later.

Namwiwat Medical Corporation, or NAM, revealed its growth plan under five core strategies during its earnings call for the second quarter of fiscal year 2026. The strategies include expanding its product portfolio to cover the entire value chain from upstream to downstream, building its brand to increase margins and create brand loyalty, expanding into international markets through subsidiaries in Malaysia and Italy, as well as establishing a component assembly base in Indonesia with local partners, using strategic partnerships to develop products, and managing costs efficiently. The company continues to advance medical innovations and health solutions to support the growth of the medical industry, an aging society, and the trend toward treatments that emphasize greater precision and safety.

New Journey announced plans to acquire a 51% stake in Shandong Zepu Medical Technology Co., Ltd. through equity transfers and a capital increase, for a total consideration of 437 million yuan. The company or its subsidiary will pay 130 million yuan to acquire a 23.6364% stake in Zepu Medical from Wu Shaojun, Wu Changlin, Chai Lechun, Chen Yongyuan, Liu Jianwei, and the Chengtou Lukang Medical and Elderly Care Industry Investment Fund Weifang Partnership Enterprise. It also plans to inject an additional 307 million yuan into Zepu Medical. After the transaction, Zepu Medical will be consolidated into New Journey's financial statements, with goodwill expected to be approximately 210 million to 240 million yuan. Zepu Medical is a specialized and innovative 'little giant' enterprise and a national high-tech enterprise that has focused on the research, development, production, sales, and service of intelligent rehabilitation medical equipment for more than a decade. It has obtained 31 domestic Class II medical device registration certificates, and a total of 73 products have received EU CE certification. In the first quarter of 2026, New Journey reported revenue of 720 million yuan and net profit attributable to the parent company of 20.47 million yuan.