Smaller-cap cardiac device companies bypass macroeconomic headwinds in the health care sector through individualized catalysts, offering opportunities for investors looking for alternatives to Big Pharma and big medical device companies, says Dr. Duane Nash, Senior Vice President at Wedbush Securities.
“[Smaller-cap cardiac device companies] tend to be more affected by individualized events than macro events, and what I mean by that is the results of their own clinical trials, for example, tend to have a far more profound effect on them than global macro events,” Dr. Nash said.
Dr. Nash points to Endologix (ELGX) as a small-cap medical device company making a device to treat abdominal aortic aneurysm. ELGX‘s alternative to open surgical procedures is less invasive, cheaper and requires shorter recovery time for patients.
“Endologix is competing against three major players, far bigger companies. And at the moment, they have about a 10% market share,” Dr. Nash said. “They’re making gradual improvements to their device, and I think in the next two years or so they should be able to increase their market share up to 20%.”
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