Australian medtech companies had a spectacular 2015 financial year in terms of share prices, rising 45.6% against 1.2% for the general market.
Canaccord Genuity Australia believes structural drivers are responsible for this impressive performance, including commercial demand for products to cut healthcare costs, gross margins typically in excess of 80%, and underlying technology underpinning new products.
Medical device products, unlike biotech, also often generate revenue within three years of listing.
Here’s how Australia’s medtech stocks compare to the ASX 200:
An equally weighted index of 25 ASX-listed drug development companies was down 4.3%.
Eleven of the 16 ASX-listed medtech device companies saw share price gains during during the year. Three had rises of more than 100%.
Here’s the detail:
“Some of the more successful ASX-listed medtech companies are leveraging structural changes emerging in the healthcare landscape,” says Canaccord Genuity Australia.
“A key driver in Canaccord’s stock selection has been to harness the commercial demand for products that reduce healthcare costs. While healthcare economics have always played an important part in the adoption of new technologies, there is an increasing focus on reducing healthcare costs through prevention.”