Seeking Alpha: Not All Great Med-Tech Is Exciting

There is no question that investors can find a lot of exciting growth stories in the medical technology space. From surgical robotics to gene sequencing to radiation therapy, a winning idea can produce not only eye-popping revenue growth, but very solid margins and returns on capital. Better still, customers have yet to show much price sensitivity and the FDA approval process means that competitors cannot exactly sneak up on a company overnight. 

And yet, a lot of would-be world-beating ideas never quite work out as expected. Companies have tried drilling holes in the heart with lasers to improve angina, using pacemakers to treat depression and obesity, and developing entirely new sequencing technologies only to meet with failure.

The good news for investors, though is that there are a lot of "boring" medical technology companies out there that avail themselves of most of those positives – decent (if not great) growth, solid margins, and good returns on capital, and protected market share – without the risks of trying to push risky moon-shots into the market. With these names, investors can often look to remarkable consistency over time, with the shot at occasional break-out winners. All in all, then, investors should give a serious look at some of the less-exciting ideas in medical technologies.

To read the full piece, please go to Seeking Alpha:
Not All Great Med-Tech Is Exciting