By Siddhi Mahatole and Sriparna Roy
July 17 (Reuters) – Intuitive Surgical shares fell nearly 10% on Friday after it maintained global growth forecast for procedures performed with its da Vinci surgical robots and flagged that changes to some insurance plans could weigh on demand.
The warning revived concerns that the loss of enhanced subsidies for Affordable Care Act or Obamacare plans could dampen demand for elective procedures, a risk Abbott brushed off as a “flawed assumption” a day earlier.
HCA Healthcare, the largest for-profit U.S. hospital operator, earlier this week had signaled softer demand for surgical procedures and increasing numbers of uninsured patients, with many Americans dropping ACA plans after pandemic-era subsidies expired.
“We thought medtech was set for a relief post ABT (Abbott) print,” Evercore ISI analyst Vijay Kumar said, adding that softness in Intuitive’s U.S. procedures, which is slowest in three years, rekindles the debate.
Stryker shares fell about 2%, while other medtech firms Boston Scientific slipped 1% and Medtronic was marginally down. Abbott was up 3%.
Intuitive’s shares fell to $363.91. The selloff appeared “increasingly overblown,” Leerink Partners analyst Mike Kratky said, even as insurance-related changes add uncertainty to U.S. procedure growth.
COVERAGE CHANGES AFFECT CARE TIMING
Intuitive expects 2026 worldwide da Vinci-assisted procedure growth to come near the midpoint of its forecast of 13.5% to 15.5%.
Da-Vinci systems are used in a broad range of procedures, including weight-loss surgeries and treatments for digestive, urologic and cardiac conditions.
Second-quarter U.S. da Vinci procedure growth was 12%, down from 14% in the first quarter and below Intuitive’s expectations at the start of the year, driven primarily by softness in procedures that can be deferred, it said.
“In our customer conversations, some have said changes in patient coverage and premium dynamics may be affecting when patients seek care and move forward with treatment,” CEO David Rosa said on a call on Thursday.
The expiration of enhanced ACA premium subsidies had a “modest adverse impact” on second-quarter U.S. da-Vinci procedure growth, the company said, without quantifying it.
At least a dozen brokerages have cut their price targets on the stock.
(Reporting by Siddhi Mahatole and Sriparna Roy in Bengaluru; Editing by Shilpi Majumdar)
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