Reuters: Medtech Stocks Plunge After U.S. Launches Import Probe

Following the U.S. Commerce Department's announcement of an investigation into medical device imports, U.S. medtech stocks experienced a downturn. The probe, initiated under Section 232 of the Trade Expansion Act of 1962, will evaluate the potential impact of imported personal protective equipment, medical consumables, and medical devices on national security. The Commerce Department is expected to issue its recommendations within 270 days. The S&P Health Care Equipment index subsequently declined by 2%. Several prominent companies saw significant stock decreases, including GE HealthCare, Becton Dickinson, Stryker, Insulet, Intuitive Surgical, and ResMed, with declines ranging from 4% to 11%. Abbott Laboratories and Medtronic also experienced losses, falling 1.6% and 2.3%, respectively. Analysts anticipate the investigation could negatively affect companies with globalized supply chains. Needham analyst Mike Matson characterized the sector as "beleaguered" and stated the probe "creates a new overhang." Matson further commented that the ultimate impact hinges on the ability of companies to transfer any new tariff costs to consumers. Year-to-date, the medtech index has risen a modest 2.3%, significantly lagging the broader S&P 500 index's 12.5% gain. AdvaMed CEO Scott Whitaker responded by stating that the association is eager to collaborate with the Administration to bolster the U.S. medtech industry.