Medical Instruments and Devices

Most medical device companies are either large or very small. During the late 1990s and into the early 21st century, many companies in the medical devices industry acquired or merged with other firms. The medical device industry spends large amounts of money on research and development. For example, the industry is working on developing innovative medical devices to deliver new biotech products. It is also looking toward markets outside of the United States. Although North America, Japan and Europe are the largest markets for medical equipment and supplies, the industry is interested in selling more devices in China, Central Europe and Latin America.

Medical device companies have struggled with regulatory issues as well as problems with reimbursement from insurance companies. In addition, during 2007 and 2008 some medical device companies stock prices fell due to safety concerns about products such as drug-coated stents. Medical device firms have also struggled due to the recession. Companies that sell less costly devices directly to hospitals have performed better than firms that sell products to consumers. As the U.S. population ages, the demand for medical equipment and supplies, especially home health-care products, should grow.