DoD tests AI models that make it easy to switch from vendors like Palantir
On Wednesday, President Donald Trump introduced a new reciprocal tariff policy that will affect United States trade partners, imposing additional tariffs ranging from 10% to 49% on top of existing ones. TD Cowen analyst Joshua Jennings has identified several Medical (TASE:BLWV) Supplies & Devices companies within their coverage that are expected to be least impacted by these changes.
Allurion (NASDAQ:ALUR), with a current rating of ’Buy’ and a price target of $3.35, manufactures its products entirely within the United States at its facilities in Natick, Massachusetts. InvestingPro data reveals the company maintains impressive gross profit margins of 67%, though it faces challenges with cash burn. According to InvestingPro’s Fair Value analysis, ALUR currently appears undervalued, despite its stock falling over 92% in the past year. InvestingPro subscribers have access to 16 additional key insights about ALUR’s financial position and market performance. Similarly, Avita Medical (NASDAQ:RCEL), also rated ’Buy’ with a target of $7.81, produces its RECELL System in Ventura, California, although it sources various components from suppliers whose origins are not specified.
Edwards (NYSE:EW), holding a ’Hold’ rating and a price target of $72.05, produces domestically for products distributed within the US, and the company believes that the percentage of manufacturing imported for the US market is minimal. Establishment Labs (NASDAQ:ESTA), rated ’Buy’ with a target of $41.59, manufactures its silicone products in Costa Rica and, due to its location, enjoys tariff-free trade with significant markets including China and Europe. However, under the new policy, a minimum 10% tariff will be applied to the Customs Value of products from Costa Rica.
Humacyte (NASDAQ:HUMA), with a ’Buy’ rating and a price target of $1.46, produces its Symvess product in North Carolina and sources key components from US-based vendors. Procept Biorobotics (NASDAQ:PRCT), rated ’Buy’ with a target of $57.74, manufactures its robotic systems in San Jose, California, relying on third-party suppliers, whose origins are not disclosed in the company’s 10K report.
TransMedics (NASDAQ:TMDX), with a ’Buy’ rating and a target of $73.11, assembles its OCS Consoles and disposable OCS Perfusion Sets in Andover, Massachusetts, and sources components from third-party suppliers, while Fresenius acts as its single-source supplier for OCS Solutions. Lastly, Vericel (NASDAQ:VCEL), also rated ’Buy’ with a target of $44.31, operates a cell manufacturing facility in Cambridge, Massachusetts, for its US manufacturing and distribution, with NexoBrid manufacturing conducted by MediWound in Israel.
These companies are anticipated to experience less impact from the new tariff measures due to their US-based manufacturing operations or favorable trade conditions in their manufacturing locations. For investors looking to identify other resilient medical device stocks, InvestingPro offers detailed financial analysis and Fair Value calculations for the entire healthcare sector, helping you make informed investment decisions in this changing trade environment.
In other recent news, Allurion Technologies reported a decline in its Q4 2024 revenue, which fell to $5.6 million from $8.2 million in the same quarter of the previous year. Despite this drop, the company successfully reduced its operating expenses by 39% year-over-year. For 2025, Allurion anticipates revenue of approximately $30 million, a decrease from the $32 million reported for 2024. The company also raised an additional $15 million in net cash through equity offerings, bolstering its cash reserves to support operations into 2026. In regulatory news, Allurion received clearance from the French National Agency for the Safety of Medicines and Health Products to resume sales of its flagship product, the Allurion Balloon, in France. Analysts from Chardan Capital Markets maintained a Neutral rating on Allurion, highlighting tempered expectations for the resumption of sales in France. The company is also preparing for a potential U.S. market entry pending FDA approval, with a focus on innovative product launches.
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