When investors think of the health care sector, most imagine the stability of pharmaceutical giants or the high-risk/high-reward profile of up-and-coming clinical stage drug developers. Medical device companies operate within a unique ecosystem and are often easy to overlook. The fact that these firms have unique business models, revenue drivers, and innovation cycles may make them appealing as a supplement—or even an alternative—to better-known corners of the health care space.
Investors seeking the advantages of companies that don't depend on the approval of blockbuster drugs, can more easily make incremental innovations, or can derive revenue from recurring procedures, may want to consider the companies below. These and other similar firms stand to benefit from growing specialized demand for procedures such as spine surgery, sleep apnea treatment, and stroke treatment.
