Medical device makers see limited hit from weight-loss drugs
(Reuters) — U.S. medical device makers do not see a big impact of new weight-loss treatments on the sales of equipment used in procedures such as bariatric surgery due to the prohibitive costs of the drugs as well as reimbursement hurdles.
Intuitive Surgical (NASDAQ:ISRG), Johnson & Johnson (NYSE:JNJ) and Abbott have all rushed in to allay fears of a hit to a lucrative slice of their business from GLP-1 drugs such as Novo Nordisk (NYSE:NVO)'s Wegovy and Ozempic, and Eli Lilly (NYSE:LLY)'s Mounjaro
The impact of the weight-loss treatments is likely to be felt across a number of industries, including packaged food and restaurants, as they are known to suppress appetite and promote a feeling of fullness.
Intuitive, which makes a surgical robot used in several procedures including bariatrics, said on an earnings call that the U.S. growth rate for weight-loss surgery was slowing as patients consider using the new drugs instead.
But like Abbott, the company pointed to reimbursement hurdles and high prices for the treatment as some of the issues that limit the hit in the near term.
«I think in the short term, we will see patients who are considering or are in the pipeline for bariatric surgery going to try the drug. However… we expect that many of them will not stay on the drug for longer than a year or two,» said Myriam Curet, Intuitive's chief medical officer.
Medicines such as Wegovy can cost more than $1,000 per month. Only about one-third of patients prescribed a weight-loss drug like Wegovy were still taking it a year later, Reuters reported in July, citing an analysis of pharmacy claims data.
However, shares of medical device companies have dropped sharply in recent weeks as investors assess the impact of the new
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