Medical Devices

Weight-loss drugs are starting to dent demand for bariatric and related surgical procedures, while ACA marketplace changes threaten the insured patient volumes Intuitive's robotic systems depend on. Two structural threats landing on the same earnings call is worse than either one alone.

Cochlear plunged the most in 30 years after cutting full-year profit guidance by 15 percent, citing slower hearing implant adoption rates in key markets. The Australian medical device maker blamed delayed surgeries and cautious patient spending on elective procedures. Revenue growth slowed to 3 percent in the latest quarter, well below the 8-12 percent range Cochlear maintained for the past five years. The guidance cut suggests post-pandemic healthcare normalization is taking longer than medical device companies anticipated.