The top medical device companies by 2017 fiscal year sales are Medtronic, Johnson & Johnson, GE Healthcare, Philips and Siemens.
The global medical device market is expected to be worth US$409.5 billion by the year 2023.
That’s a huge pie, and the market is dominated by a handful of major international companies. So what are the top medical device companies?
According to this list from Medical Product Outsourcing, the five firms listed below are the top medical device companies based on 2017 fiscal year sales. Here’s a look at what each company is all about — read on to learn more about this growing life science sector.
1. Medtronic (NYSE:MDT)
2017 fiscal year sales: $29.7 billion
First on our list of top medical device companies is Medtronic. It is a large global company with executive offices in Ireland and operational headquarters in Minneapolis. With more than 85,000 employees in over 160 countries, it is a major player in the medical device industry.
Medtronic released its Q1 results for the 2019 fiscal year midway through 2018, claiming $7.4 billion in revenue. Medtronic’s cardiac and vascular division brought in $2.8 billion alone, representing an increase of 6.2 percent year-over-year. The company also released its 2019 guidance, raising its organic revenue growth outlook to 4.5 to 5 percent.
2. Johnson & Johnson (NYSE:JNJ)
2017 fiscal year sales: $26.6 billion
Johnson & Johnson is the second-largest company in the medical device industry. The medical device section of this international firm is comprised of its global medical solutions, global orthopaedics and global surgery groups.
In its Q2 2018 results, the company reported $20.8 billion in sales for the period, up 10.6 percent year-over-year. Chairman and CEO Alex Gorsky said, “[o]ur strong second-quarter results reflect double-digit growth in our Pharmaceutical business and the accelerating sales momentum in our Medical Devices business, driven by the continued growth of our market leading products and strategic new launches.”
The products that Johnson & Johnson makes are used by a wide variety of healthcare professionals. For instance, Biosense Webster (a Johnson & Johnson company) is a leader in the production of advanced cardiac diagnostic, therapeutic and mapping tools — it produced the first EP diagnostic catheters two decades ago. Meanwhile, Cordis is a pioneer in the field of interventional vascular technology.
3. GE Healthcare
2017 fiscal year sales: $19.1 billion
Third on this list of top medical device companies is GE Healthcare, the healthcare division of General Electric Company (NYSE:GE). It is a leader in the medical device manufacturing field. Some of the company’s latest products include Discovery IGS 740 (a mobile angiography system), Vscan with Dual Probe (the world’s first handheld ultrasound machine with two transducers in one probe) and Invenia ABUS (an automated breast ultrasound machine).
At the close of Q2 2018, the company reported total revenues of $30.1 billion for the quarter, representing a 3-percent increase compared with 2017. In the report, CEO John Flannery said, “[t]he second quarter was in line with expectations, and we saw continued strength across many of our segments, especially in Aviation and Healthcare.”
4. Philips Healthcare
2017 fiscal year sales: $16.3 billion
Philips Healthcare is a subsidiary of Koninklijke Philips (AMS:PHIA), a diversified technology company. Healthcare makes up 42 percent of Philips’ global sales revenue. It is a large company with over 71,000 employees scattered across 100 countries, and has produced more than 450 products and services.
The company reported that its HealthTech sales grew by 4 percent in Q2 of this year. It also highlighted its acquisitions — Philips recently bought EPD Solutions, a company focused on on image-based treatments for conditions like cardiac arrhythmia. The company acquired Remote Diagnostic Technologies as well, which provides cardiac therapy, monitoring and data management. These two companies are expected to strengthen Philips’ therapeutic care division.
5. Siemens (ETR:SIE)
2017 fiscal year sales: $16.3 billion
Last but not least on this list of top medical device companies is Germany-based Siemens, the largest European medical device company. Founded in 1847, it now has 343,000 employees worldwide.
Siemens reported a solid Q2 for the 2018 fiscal year, saying it brought in revenue of 20.1 billion euros. The company did cite expectations for further geopolitical “uncertainties,” like the trade war between the US and China, for example, which could affect investment sentiment. Siemens also noted that currency conversion caused lower profitability in the quarter.
Which of the top medical device companies would you invest in? Why or why not?
This is an updated version of an article first published by the Investing News Network in 2016.
Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.