3 MedTech Stocks To Rebound After Coronavirus-Led Recoil
Zacks Investment Research | Mar 05, 2020 09:13PM ET
The massive coronavirus outbreak in China has sent shock waves through the global health community. The Center for Diseases Control and Prevention (CDC) has reported that 10 people have succumbed to the virus in the United States, while 99 cases have been confirmed in total, as of Mar 5.
While most U.S. stocks have been hit by the outbreak, the mixed impact of the epidemic on U.S. MedTech companies is interesting. The virus has without a doubt bumped up sales of respiratory masks to unforeseen levels. Meanwhile, medical device firms are facing supply chain disruptions.
The FDA has issued an emergency use authorization (EUA) of a diagnostic test for the novel coronavirus, which will allow the use of the test panel in any CDC-qualified laboratory across the United States.
There are a few MedTech companies whose business within emerging markets, particularly China, has faced an immediate aftermath of the coronavirus.
In this regard, Boston Scientific (NYSE:BSX) projects a preliminary $10 million to $40 million potential headwind to first-quarter 2020 revenues as a result of deferred procedures and supply chain disruptions. Boston Scientific anticipates a reduction in volume for all non-emergency medical device procedures as its China business is bound to have been affected in February as well as March by the outbreak.
Similarly, Becton Dickinson (NYSE:BDX) expects around a $20-$30 million headwind to second-quarter fiscal 2020 revenues.
Meanwhile, there are a few MedTech stocks that deserve investors’ attention at the moment following several recent initiatives taken by them to control the coronavirus-led damage.
Novavax, Inc (NASDAQ:NVAX) recently announced the start of animal testing for a potential coronavirus vaccine. Management at Novavax stated that human testing for the vaccine will begin by the end of spring 2020.
QIAGEN (NYSE:QGEN) also announced the shipping of its newly-developed QIAstat-Dx Respiratory Panel 2019-nCoV test kit to four hospitals in China for evaluation.
3 Stocks to Focus On:
There are a few companies which are expected to recover from the initial virus-dealt jolt on strong segmental performance in markets outside of China. The following are three such companies with a Zacks Rank #2 (Buy) or 3 (Hold). You can see industry .The stock has lost 0.1% compared with the industry’s 5.2% fall.
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