Medical Technology: Searching For Stability In The New Normal

2020 has been a year like no other! In the center of it all medical equipment and consumable manufacturers, diagnostic test providers, and pharmaceutical/biotechnology developers have been working tirelessly in the effort to combat COVID-19. In addition to helping treat those who have contracted COVID-19, these companies have also been critical players in the push to develop and manufacture massive numbers of diagnostic tests, as well as to test and validate potential vaccines for the disease.
Like nearly all publicly traded U.S. equities, the stock performance of PMCF’s four Medical Technology indices turned negative during the spring months, with a rapid decline in valuations, followed by varying levels of recovery and growth. Aside from the Orthopedic Medical Device index, a sector particularly challenged by the effects of COVID-19 related shutdowns, the other indices outperformed the Dow Jones Industrial Average over the last twelve months but underperformed the S&P 500 Growth Index.
While PMCF’s Medical Technology indices reacted sharply to previous COVID-19 milestones and events, the likely effect of the recent second wave spike in cases and vaccine data readouts remains unclear.