Needham says overturning of ACA may spell trouble for some MedTech cos

NuVasive

21/09/2020 15:44

** Brokerage Needham says if the Affordable Cares Act (ACA)
is overturned, it will have a potentially negative impact on
certain MedTech companies heavily involved in elective
procedures and those supplying capital equipment to hospitals  
    ** U.S. Supreme Court is scheduled to hear oral arguments
for the case, which challenges the constitutionality of the ACA,
on Nov. 10; decision is expected next year and could come as
late as June 2021
    ** Brokerage says the decision could lead to decline in
elective procedure volumes as millions of people will lose
insurance coverage
    ** Companies with most exposure to elective procedures are
Axonics Modulation Technologies Inc  AXNX.O , Boston Scientific
Corp  BSX.N , Cantel Medical Corp  CMD.N , Conmed Corp  CNMD.N ,
Globus Medical Inc  GMED.N , LivaNova Plc  LIVN.O , Medtronic
Plc  MDT.N , NuVasive Inc  NUVA.O , SI-BONE Inc  SIBN.O ,
Stryker Corp  SYK.N , and Zimmer Biomet  ZBH.N 
    ** Decision could hit hospital capital spending, in turn
affecting budget for capital equipment - Needham
    ** Companies with the most capital equipment exposure are
Hologic Inc  HOLX.O , Hill-Rom Holdings Inc  HRC.N , and Stryker
among others
    ** Brokerage says given the change in the Supreme Court's
make-up with the death of Ruth Bader Ginsburg, legal scholars
see an increased chance that the law could be overturned

 (Reporting By Mrinalika Roy in Bengaluru)
 ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 8325;))