Medical supplier stocks collectively toppled to a 10-month low intraday Tuesday with Becton Dickinson (BDX) among the biggest losers after reports emerged that Amazon.com (AMZN) is planning to sell supplies to hospitals.
But analysts largely doubted Amazon could put pressure on manufacturers of “higher tech” products, including implantable devices.
This would insulate companies like Medtronic (MDT), Stryker (SYK), Cantel Medical (CMD), Conmed (CNMD) and Teleflex (TFX), Needham analyst Mike Matson wrote in a note to clients. In other industries, Amazon has typically disrupted the middlemen more than the manufacturers, he said.
“In our view, Amazon’s model may work for ‘lower tech’ products but is unlikely to work with ‘higher tech’ products,” Matson said.