May. 5 at 7:47 PM
$ISRG $MDT $DHR $GEHC
GLP1 makers have weaponized fat loss and declared war on medical device makers -- particularly those that make devices for treating cardiovascular and coronary heart disease (CHD). That's why the whole sector is going to hell in a handbasket. Of course it's unrealistic for everyone to be on GLP1. But insurers are reasoning that it costs less to put them on fatloss pills than let them get fat. Plus when the generics come out, fatloss could become really widespread. Now, 2/3s of us are fat; imagine if we lowered this to only 1/2. That could in theory lead to less CHD procedures involving stents, angioplasties, balloons, branded statins, etc. All it takes is deceleration to decimate high-flying medical device stocks like ISRG-TMO-MDT-DHR-BSX. Look at LULU : the company is still very profitable, the margins are still good. But it's no longer growing at 25% but at 5-10%. That's all it takes to lose half of your value.
