Med Tech Pricing Stagnates in 2025, Raymond James Reports

Med Tech Pricing Trends Turn Flat in 2025

Medical technology pricing has flattened in 2025 after a brief positive trend, according to a new analysis from Raymond James. The report indicates that after turning positive in 2023 and 2024 in response to inflation, the sector's pricing momentum has stalled. The initially reported negative pricing for 2025 was found to be distorted by Johnson & Johnson's Stelara patent expiration.

Analysis of Recent Pricing Shifts

The firm's analysis, covering major companies like Abbott, Becton Dickinson, and Stryker, shows a shift from seven years of price deflation to a temporary increase. However, when excluding Johnson & Johnson's corporate-level reporting, which includes its pharmaceutical segment, the true Med Tech pricing trend for 2025 is neutral. This suggests the price impact on overall revenue growth has been negligible.

Volume Remains Key Growth Driver

Raymond James highlights that volume continues to be the dominant driver of industry growth, not pricing. The firm expressed surprise that pricing has not trended higher given the favorable competitive structure in most Med Tech markets. The analysis concludes that new product development is the most critical factor for achieving sustained improvement and driving revenue.

Outlook and Key Takeaways

The outlook suggests that the Med Tech sector's growth will depend more on innovation and product volume than on price increases. Companies that focus on developing new products are best positioned for sustained success. The market will continue to monitor how these dynamics affect company revenues moving forward.

FAQ

Q: Why did Med Tech pricing appear negative in 2025?
A: The figure was skewed by Johnson & Johnson's Stelara loss of exclusivity. When JNJ is excluded from the data, pricing was flat.

Q: What is the main driver of growth in the Med Tech industry?
A: According to the report, volume driven by new product development is the dominant growth driver, not pricing.

Source: Investing.com