In the midst of a global pandemic, medical equipment, and consumable manufacturers, diagnostic test providers, and pharmaceutical / biotechnology developers have been thrust into the spotlight as the government and the public alike lean on them. The critical role these companies play in public health has been underscored as they produce products that keep people safe and limit the spread of infection, help treat those who contract COVID-19, and race in the attempt to develop a cure and vaccine.
Despite their critical role in helping the world overcome the challenges related to COVID-19, the stock performance of medical companies has differed little from that of the broader market during 2020. All four PMCF MedTech indices declined during Q1, with the Diversified Diagnostic Index faring the best at -9.4%, and the Orthopedic Medical Device Index sliding the farthest at -25.2%, likely related to the temporary ban on elective procedures.
While PMCF’s Medical Technology indices reacted sharply to COVID-19 events during the first quarter, as discussed above, as of this report’s May 15th data cut off date all indices had rebounded in a significant way, with the Diversified Diagnostic Index leading the way up 2.1% year to date.
