With the final quarter of 2018 almost over, the Investing News Network is profiling the top medical device stocks on the NASDAQ year-to-date.
Brain scans, dermatology lasers and oxygen saturation monitors are just a few of the devices companies have used to disrupt the modern healthcare industry.
Dominantly, gains for the medical device industry are still being made in the US, but this could shift as expansion takes place through consolidation and collaborations in the industry. The medical device excise tax moratorium was extended again, until January 2020, which may encourage investors to continue investing in these companies.
President Donald Trump’s recent tariffs on China will actually increase prices for consumers in the US, for devices coming from China, according to Health Leaders.
The medical device industry is expected to increase to an estimated US$409.5 billion value by 2023, growing at a compound annual growth rate (CAGR) of 4.5 percent between now and then, according to a report by Lucintel.
With the final quarter of 2018 almost over, the Investing News Network is profiling the top medical device stocks on the NASDAQ year-to-date, to give investors insight as to the growth this industry has experience so far this year.
All numbers and figures are current as of market close on December 4, with data compiled from Trading View’s stock filter. Figures are reported in US dollars, unless otherwise noted. Companies listed below have a market cap between $50 million and $500 million.
1. CAS Medical Systems (NASDAQ:CASM)
Market cap: $56.27 million; year-to-date gain: 149.38 percent; current share price: $1.92
First on our top NASDAQ medical device stock list year-to-date is CAS Medical Systems. The company is known for specializing in manufacturing and developing blood pressure measurement devices, vital signs monitors, apnea monitors and neonatal supplies. Now the company is primarily focused on its Fore-Sight tissue oximetry product.
Thus far in the quarter, CAS announced an increase in sales for Q3. The Fore-Sight cerebral oximetry sales increased 20 percent to $5.3 million and the sensor sales increased 22 percent to $4.8 million, compared to the same quarter in 2017.
As for cash, equivalents and available borrowings, the company had $5.9 million at the end of the quarter.
2. Strata Skin Sciences (NASDAQ:SSKN)
Market cap: $92.82 million; year-to-date gain: 147.97 percent; current share price: $3.05
Strata Skin Sciences has the biggest dermatologist focus for medical device companies on this list. The company has developed the XTRAC excimer laser, the Vtrac lamp systems and the Stratapen MicroSystem to treat psoriasis, vitiligo and other skin conditions.
The company had a revenue increase of eight percent to $7.9 million last quarter, as reported in the company’s Q3 financial report. The biggest chunk of this revenue was the recurring XTRAC revenue, which increased 70 percent to $5.6 million. Recurring dermatology procedures increased six percent to 68.4 percent of the revenue margin.
Net loss also made a significant drop to $3.9 million from the nine months ending September 30, compared to $17.11 million from the previous year.
3. Nuvectra (NASDAQ:NVTR)
Market cap: $362.39 million; year-to-date gain: 144.33 percent; current share price: $18.96
Middle of our top medical device NASDAQ stocks list year-to-date is Nuvectra. Based on neurostimulation, Nuvectra works in the niche area of spinal cord stimulation, with its product the Algovita. The device is CE marked and US Food and Drug Administration (FDA) approved for chronic intractable pain in the truck and other limbs.
Other developing technologies include the sacral neuromodulation to treat overactive bladder, and deep brain stimulation to treat Parkinson’s Disease. The company’s subsidiary NeuroNexus also develops neural-interface technologies for neuroscience.
In early December, the company received FDA approval for head-only MR-conditional of the Algovita SCS system. The company intends to apply for full-body MD-conditional approval in early 2019.
4. Pro-Dex (NASDAQ:PDEX)
Market cap: $60.88 million; year-to-date gain: 113.97 percent; current share price: $14.55
Next on the top NASDAQ medical device stocks list is Pro-Dex, which focuses on surgical and dental instruments and motion controlled products used in industrial areas. The company is broken up into three business sectors: Pro-Dex, OMS and Engineering Services.
In the company’s fiscal 2019 Q1 financial results, net sales increased by $1.8 million to $6.9 million representing a 34 percent increase from the same period in 2017. The results noted this increase was due to increased sales to its largest unnamed customer.
This also increased the cash and equivalents increasing to $8.31 million from $5.18 million for the same time period.
5. SeaSpine (NASDAQ:SPNE)
Market cap: $363.79 million; year-to-date gain: 82.71 percent; current share price: $18.49
Last on our top NASDAQ medical device stocks year-to-date is SeaSpine, which has devices for spinal disorders. The company has developed orthobiologics and spinal fusion hardware. The devices are used by neuro and orthopedic spine surgeons to perform fusion procedures in the lumbar, thoracic and cervical spine.
Some highlights from the company’s Q3 2018 financial results includes a 13 percent year-over-year increase in revenue to $35.8 million. This includes a 13 and 12 percent increase to $15 million for spinal implants and $16.7 million for orthobiologics revenues, respectively.
The company also raised $54 million from net proceeds of its October public offering. The company intends to use these funds to repay its outstanding borrowings to Wells Fargo Bank, among other purposes.
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Securities Disclosure: I Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.