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The global economy continues to grapple with the persistent crisis triggered by the coronavirus pandemic. While most sectors were hit hard by the economic turmoil, the MedTech sector was resilient enough to recover from the chaos quite swiftly.

The sector started showing signs of a turnaround from the second half of 2020, courtesy of a number of positive developments. These are regulatory clearances and the launch of several COVID-19 diagnostic tests besides the rapid consumer adoption of digital healthcare options plus critical care products and services.

Below we discuss three MedTech subindustries, which have been performing steadily through the pandemic year and are likely to have held ground in the soon-to-be-reported quarter. 

Diagnostic Testing

With the recent emergence of the new coronavirus strains and the resurgence of a fresh wave of cases from the end of 2020, demand for testing witnessed a sharp spike. Lately, the diagnostic testing space is flourishing with newer and more improved tests being developed on a daily basis by several leading MedTech players.

Per a Fortune Business Insights report, the global COVID-19 diagnostics market value stood at $6.22 billion in 2019 and is anticipated to reach $11.40 billion by 2027, seeing a CAGR of 7.9%. Apart from an uncontrolled spread of coronavirus worldwide, the development of real-time test, robust WHO recommendations to make COVID-19 diagnostic a top priority and the rising government initiatives targeted toward the implementation of mass testing are fueling the market.

In this regard, it can be mentioned that in March 2021, PerkinElmer (PKI - Free Report) introduced two Research Use Only (RUO) solutions, namely PKampVariantDetect SARS-CoV-2 RT-PCR Assay and Next Generation Sequencing-based NEXTFLEX Variant-Seq SARS-CoV-2 Kit to detect genomic mutations reported in connection with SARS-CoV-2 variants. Notably, laboratories can utilize these assays through nucleic acid extracted from samples that tested positive earlier.

For the first quarter of 2021, revenues are expected to be $1.19 billion, indicating a swell of 82.9% from the year-ago reported figure while EPS is estimated to be $3.03, suggesting a jump of 352.2% from the year-ago reported figure.

Over the past year, this currently Zacks Rank #3 (Hold) company’s shares have soared 52.4% compared with the S&P 500 Index’s rally of 50%.

Medical Services

This subindustry within the broader MedTech sector boasts digital healthcare options, such as remote patient monitoring among other trends. With the onset of the pandemic, digital healthcare treatment became indispensable and evidently, remote patient monitoring tools saw a steady surge in demand. It is a form of AI-powered technology, which can be leveraged to analyze patient data outside the traditional bounds of healthcare as well as keep the patient health under a close vigilance. This was necessitated by the urgency to minimize the exposure to the deadly virus by curtailing clinic and hospital visits.

Per a Grand View Research report, the global medical services market size was valued at $7.8 trillion in 2018 and is expected to witness a CAGR of 8.1% from 2019 to 2026. Amid the pandemic, this line of healthcare is becoming a major choice for contactless healthcare services.

Here we ask investors to take notice of PRA Health Sciences, Inc. PRAH. In April 2021, the company announced that Merck KGaA, Darmstadt, Germany, which is known as EMD Serono in the United States, chose PRA Health’s remote patient monitoring platform to operate along with its human growth hormone (HGH) treatment system. This development is likely to boost PRA Health’s Data Solutions segment, which offers data, analytics, technology and consulting solutions to the life sciences market.

For the first quarter of 2021, revenues are expected to be $854.9 million, indicating a rise of 9.1% from the year-ago reported figure while EPS is expected to be $1.34, suggesting an improvement of 27.6% from the year-earlier reported figure.

Over the past year, this currently Zacks #3 Ranked company’s shares have soared 87.8% compared with the industry’s increase of 23.2%.

Women’s Health Industry

Amid this prevalent public health crisis, cases of pregnancy are particularly calling for special care. The buoyancy in demand for women health solutions to address different medical challenges like infertility, postmenopausal osteoporosis, gynecologic cancers, polycystic ovary syndrome, reproductive health complications is consistently adding momentum to the market.

Diagnostic imaging tests, bone densitometry, ovulation testing, and biopsies among others in the wake of the coronavirus outbreak have been aiding the expansion of the women healthcare market for a while now.

Per a Grand View Research article, the global women’s health market size was valued at around $32 billion in 2019 and is projected to see a CAGR of 4.9% over the forecast 2020-2027 period.

Given this scenario, attention can be drawn toward Hologic, Inc. (HOLX - Free Report). This companyhas been making an impressive progress in its Breast Health arm through the pandemic months so far. The company launched SuperSonic MACH 20 ultrasound system in January 2021, thus expanding its ultrasound portfolio.

In the same month, management announced the availability of 3D ultrasound imaging on the SuperSonic MACH 30 and 20 ultrasound systems in Europe. A notable buyout that Hologic completed in January is that of SOMATEX Medical Technologies GmbH, a well-known name in the biopsy site markers and localization technologies space.

For the March quarter of 2021, revenues are expected to be $1.54 billion, indicating a skyrocketing surge of 104.2% from the year-ago reported figure while EPS is expected to be $2.62, implying 359.7% growth from the year-ago reported figure.

Over the past year, this currently Zacks Rank #3 company’s shares have soared 58.5% compared with the industry’s rise of 32.2%.