5 Biggest Medical Device Companies in the World

In this article we will take a look at the 5 biggest medical device companies in the world. If you want to know more about the industry and discover additional companies, take a look at 15 Biggest Medical Device Companies in the World.

5. Edwards Lifesciences Corporation (NYSE:EW)

Market Cap as of November 18: $45.58 B
Number of Hedge Fund Holders: 57

Edwards Lifesciences Corporation (NYSE:EW) places a high premium on patient-centered medical advancements for heart disease and critical care monitoring. The company’s products are divided into three categories: Transcatheter Heart Valves, Surgical Structural Heart, and Critical Care.

On October 28, Cowen analyst Joshua Jennings maintained an ‘Outperform’ rating and trimmed his price objective on Edwards Lifesciences Corporation (NYSE:EW) to $100 from $125. According to the analyst, ongoing issues with the company’s employees, a spike in COVID in Japan, and a higher yen caused the company’s TAVR for the third quarter to fall short of forecasts.

At the end of Q3, Fisher Asset Management was the leading shareholder of Edwards Lifesciences Corporation (NYSE:EW), holding over 7.54 million shares. Overall, 57 hedge funds in Insider Monkey’s database were bullish on Edwards Lifesciences Corporation (NYSE:EW) in Q3, up from 39 in the previous quarter.

Here is what Wedgewood Partners said about Edwards Lifesciences Corporation (NYSE:EW) in its Q3 2022 investor letter:

“Edwards Lifesciences Corporation (NYSE:EW) reported just +5% growth in revenue (foreign exchange adjusted) compared to a year ago. While this quarter represented a deceleration in revenue growth from earlier this year, much of that was due to hospital staffing shortages and the vagaries of global healthcare systems emerging from pandemic disruptions. The Company received FDA approval for its minimally invasive mitral valve repair system, PASCAL, and also presented compelling related clinical data, which should help support accelerating growth over the next few years. As for Edwards’ core TAVR system, there continues to be a (unfortunately) pent-up, untreated population suffering from severe aortic stenosis that will finally be able to find their way back into healthcare systems as labor market pressures ease.”

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4. Boston Scientific Corporation (NYSE:BSX)

Market Cap as of November 18: $60.44 B
Number of Hedge Fund Holders: 53

Boston Scientific Corporation (NYSE:BSX) creates, produces, and sells medical equipment. The company’s business divisions include Cardiovascular, Rhythm and Neuro, and MedSurg. With a market cap of $60.44 billion, Boston Scientific Corporation (NYSE:BSX) stands fourth on the list of 15 biggest medical device companies in the world.

Canaccord analyst William Plovanic retained a ‘Buy’ rating on Boston Scientific Corporation (NYSE:BSX) shares on October 27 and raised his price target from $45 to $48. The analyst thought the conditions for 2023 were favorable given that organic growth was solid.

According to Insider Monkey’s data, Boston Scientific Corporation (NYSE:BSX) was part of 53 hedge fund portfolios at the end of Q3 2022, compared to 56 funds in the second quarter.

Artisan Partners mentioned Boston Scientific Corporation (NYSE:BSX) in its Q2 2022 investor letter. Here is what the firm has to say:

“We took advantage of Boston Scientific Corporation (NYSE:BSX)’s share price pullback during the quarter. We believe the company is well-positioned to benefit from an expected return of elective medical procedures and several innovative product profit cycles in the periods ahead. Meanwhile, the company’s health care end market could prove relatively resilient in a recession scenario.”

3. Stryker Corporation (NYSE:SYK)

Market Cap as of November 18: $82.87 B
Number of Hedge Fund Holders: 34

Stryker Corporation (NYSE:SYK) is a global medical technology corporation based in the United States. Stryker Corporation (NYSE:SYK)’s shares rallied 1.89% last month, resulting in an $82.87 billion market capitalization.

Due to inflation and currency challenges, Stryker Corporation (NYSE:SYK)’s third-quarter results fell short of expectations. As a result, on November 1, analyst Shagun Singh from RBC Capital decreased his price objective on Stryker Corporation (NYSE:SYK) from $255 to $240 while maintaining a ‘Sector Perform’ rating on the stock.

Among the hedge funds tracked by Insider Monkey, 34 were long Stryker Corporation (NYSE:SYK) at the end of Q3 2022, compared to 46 funds in the last quarter. Terry Smith’s Fundsmith LLP is the leading stakeholder of Stryker Corporation (NYSE:SYK), with 5.63 million shares worth $1.14 billion.

Diamond Hill Capital mentioned Stryker Corporation (NYSE:SYK) in its Q3 2022 investor letter. Here is what the firm has to say:

“Stryker Corporation (NYSE:SYK) was the only new addition to the portfolio in Q3. It is one of the largest medical device manufacturers with a track record of consistently outgrowing its end markets and competitors. Stryker has a highly performance driven culture with a decentralized operating model that results in strong incentive alignment within the company. We believe the management team has executed well, making small but meaningful decisions that have positioned the firm well among competitors. Management operates with a market share gain mentality and strives to be a category leader in the market they are in. Stryker also benefits from its broad portfolio of surgical tools, small and large cap hospital equipment, waste management products, etc., which enables it to address all the needs of a hospital operating room and be a one-stop shop for health care facilities. This is particularly appealing to hospitals, and it positions Stryker to be the supplier of all operating room equipment versus a single product, thus enabling the company to gain market share.”

2. Medtronic plc (NYSE:MDT)

Market Cap as of November 18: $106.25 B
Number of Hedge Fund Holders: 55

Medtronic plc (NYSE:MDT) is a global company that develops, produces, and distributes device-based medical therapies to healthcare systems. On November 15, Medtronic plc (NYSE:MDT) unveiled the Medtronic Extended infusion set in the United States, the first and only infusion set with a label allowing for up to seven-day wear.

Pito Chickering, an analyst at Deutsche Bank, downgraded Medtronic plc (NYSE:MDT) from ‘Buy’ to ‘Hold’ on November 16 with a price objective of $85, down from $121. According to Chickering, the firm had a challenging year due to several product difficulties in Q4 of 2021 and economic headwinds that influenced earnings growth in fiscal 2023.

By the end of the third quarter of 2022, Insider Monkey identified 55 hedge funds that had stakes in Medtronic plc (NYSE:MDT). The total value of these stakes was over $2.65 billion. As of September 30, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital is the lead stakeholder in Medtronic plc (NYSE:MDT). The fund owns more than 7.16 million shares of stock, which are worth $578.31 million.

Artisan Partners shared its outlook on Medtronic plc (NYSE:MDT) in its Q2 2022 investor letter. Here’s what the firm said:

“While Medtronic plc (NYSE:MDT)’s procedure volumes recovered to pre-COVID levels, foreign exchange headwinds overshadowed underlying business value growth, and supply chain issues, including those related to China’s lockdowns, impacted the surgical innovations business. The downdraft in the market during the quarter led to a pile-on. We are being patient with our investment in Medtronic because the company continues to be a strong free cash flow generator and is attractively priced, with a FCF yield of 5% on trailing one-year numbers and a dividend yield of 3%. Medtronic is under new management that is focused on growing the company’s top line, reinvesting in R&D, returning cash to shareholders and growing operating profits. We like new management’s strategy and believe new product launches, increased surgery visits, sound M&A transactions and a shareholder returns focus, should reinvigorate the business. We added to our positions in these health care names during the quarter.”

1. Abbott Laboratories (NYSE:ABT)

Market Cap as of November 18: $178.82 B
Number of Hedge Fund Holders: 62

Abbott Laboratories (NYSE:ABT) tops the list of the 15 biggest medical device companies in the world. It is involved in researching, developing, producing, and marketing a vast and varied range of medical goods. Currently, Abbott Laboratories (NYSE:ABT) sells branded generic drugs, food nutritional items, medical devices, equipment, and diagnostics.

Mizuho analyst Anthony Petrone commenced coverage of Abbott Laboratories (NYSE:ABT) on October 26, rating it as ‘Neutral’ with a price objective of $105. Among the hedge funds tracked by Insider Monkey, Ken Fisher’s Fisher Asset Management is the leading position holder in Abbott Laboratories (NYSE:ABT), with 9.13 million shares worth about $883.29 million. Overall, 62 hedge funds were long Abbott Laboratories (NYSE:ABT) at the end of September 2022, down from 61 funds in the earlier quarter.

Here’s what Diamond Hill Capital said about Abbott Laboratories (NYSE:ABT) in its Q3 2022 investor letter:

“Also among our bottom contributors were health care products manufacturer Abbott Laboratories (NYSE:ABT), global pharmaceutical company Pfizer, media and technology giant Alphabet, and insurance company American International Group (AIG).

Abbott has been working through a recall of its infant formula brand Similac in the US, which has continued to pressure its share price. Although the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company given it is one of the highest quality names in health care, in our view, with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in its medical device business. The company continues to launch innovative products in key strategic areas (such as diabetes, structural heart, and diagnostics), which should help drive not only revenue growth but margin expansion.”

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