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Medtech Salary Survey 2024: Full Report

See MD+DI's report on medical device salaries in research and development, product design engineering, management, quality control, regulatory affairs, and production.

Where do you stand in comparison to what your colleagues are making? Do you know if your salary is as high as it should be for your position and level of experience? Is it time to ask for a raise? And more importantly, do you truly have job security?

Those questions and more are the impetus behind?MD+DI’s 2024 Medtech Salary Survey. Each year, we ask medical device and diagnostics industry professionals detailed questions about their salaries, bonuses, benefits, job satisfaction, job security, and more. This year’s survey was fielded online from March 25 through May 6, 2024, with 425 respondents completing the survey anonymously. Responses were filtered so that only those working full-time for a manufacturer of medical devices, a manufacturer of in vitro diagnostics (IVDs), or a manufacturer of both medical devices and IVDs were included in the final analysis.

Embecta M&A Rumor Not Surprising

A media report claims Embecta is exploring a potential sale.

By Amanda Pedersen

A recent media report suggests Embecta, the company that spun out of BD in April 2022, is exploring a potential sale.

Citing two unnamed sources, the Financial Times reported that the company has hired advisors from Centerview Partners to assess a potential sale. According to the article, Embecta's "lackluster" stock performance, low market value, and similarity to other companies that have recently attracted buyout interest could make it a good acquisition candidate. The media outlet said Embecta did not respond to a request for comment and Centerview Partners declined to comment.

"While we do not know whether the report is true, we are not surprised by the suggestion," Marie Thibault, a medtech analyst at BTIG, wrote in a report Sunday.

Thibault noted that Embecta's stock price fell nearly 50% between January and May, with little news to explain the weakness. The analyst also wrote that a strong fiscal second-quarter report in early May drove a sharp recovery in the shares, though the stock has remained in the low- to mid-teens in the weeks since. She also pointed to the fact that Embecta trades well below its peers on any valuation measure.

"As we have written before, we think this is likely due to investor uncertainty on the company's eventual margin profile and [free cash flow] generation capabilities as it eyes the T2D patch pump market, ability to compete in the patch pump market, lack of sales growth, and potential risk around developments with long-acting insulin and GLP-1s," Thibault wrote.

But there is also plenty to like about Embecta as an asset, she noted, including the company's track record of quarterly beats, its relatively healthy operating margins compared to may medtech peers, its market leadership, global presence, dividends, and the nearly complete separation process.

"While underscoring that we do not know if the Financial Times report is true, we think Embecta could be appealing to private equity or companies evaluating a broader reach, scale, and manufacturing capabilities in medical supplies, diabetes, or drug delivery, among others," Thibault wrote.

Breaking up is hard to do

Neil Sedaka was right about breaking up being hard to do, and his lyrics appear to be especially true for large spinoff companies.

In addition to the above-mentioned struggles Embecta has faced in its two years as a standalone company, ZimVie has also struggled to find its footing since spinning out of Zimmer Biomet.

ZimVie originally spun out as a dental implant maker and spine company, but sold its spine business to H.I.G. Capital a few months back in a deal valued at $375 million. Earlier this month, Bloomberg reported that ZimVie is exploring alternatives after receiving interest from potential buyers, which include buyout firms and companies in the industry.

GE HealthCare has also had some ups and downs since spinning out of GE in January 2023. While the company came out of the gate hot on the M&A trail, quarterly earnings have been somewhat of a sore spot. Ryan Zimmerman, another medtech analyst at BTIG, recently called GE HealthCare out as a "better not miss" stock for the second quarter, given its disappointing first-quarter earnings report.

"When we consider the step-up in growth in 2H needed to make guidance, a 2Q miss could be devastating," Zimmerman wrote.

An earlier report from Zimmerman explains that despite the first-quarter miss, GE HealthCare reaffirmed its full year 2024 guidance of 4% organic growth and adjusted earnings per share of $4.20 to $4.35, meaning the company needs to see at least 7% growth in the second half of the year to hit the target.

"Investors never like a back-half set-up and order growth has been soft the past three quarters providing limited line of sight to the 7% needed to hit numbers," Zimmerman wrote. "At the same time,?[GE HealthCare] will face easing order comps through the rest of FY24, benefit from economic stimulus in China, and new products in ultrasound."

Looking at medtech spinoffs on a more historic basis, Abbott's pharma spinoff, completed in January 2023, remains among the most successful spinoffs in the industry. Today, AbbVie is larger than Abbott, with a market cap of over $304 billion.

Abbott Recall Small Number of FreeStyle Libre 3 Sensors

Internal testing reportedly unveiled potential sensor inaccuracies in three product lots.

By Katie Hobbins, Managing Editor

Abbott Laboratories has initiated a voluntary recall of a small number of FreeStyle Libre 3 sensors within three lots distributed throughout the US. Designed to be what the company says is the world’s smallest sensor, the continuous glucose monitor (CGM) is considered one of the big players in the diabetes market, along with Dexcom’s G7.

The recall of FreeStyle Libre 3 only pertains to the sensor — one of the three parts of the system, including the sensor, reader, and app. Affecting sensors distributed during the first half of May 2024, Abbott wrote that internal testing unveiled that some sensors from lots T60001948, T60001966, and T60001969 may provide incorrect high glucose readings. If these incorrect readings were to go undetected, it may pose health risks for patients and could lead to taking too much insulin and other incorrect treatment decisions.

If experiencing symptoms that do not match the CGM reading or if it is suspected that the reading is inaccurate, Abbott recommends customers conduct a fingerstick test using any blood glucose meter.

For customers, Abbott said in the recall notice to check the lot or serial number to determine if a device in use is part what is being recalled. To do this, it is recommended to locate the product package and find the serial number (identified as SN) on the bottom of the packaging, and if packaging is unavailable, the SN is displayed within the FreeStyle Libre 3 app or reader.

If the sensor is found to be faulty, customers should immediately discontinue use and dispose of any recalled sensors. Abbott will replace affected sensors at no charge.

"We sincerely regret the disruption this may have on our customers," said Jared Watkin, executive vice president of Abbott’s diabetes care business, in the company press release. "We’re actively working with the U.S. Food and Drug Administration and distributors, as well as providing information to affected customers, who will receive replacements at no charge as quickly as possible."

The company reiterated that the only item being recalled is the sensor of the FreeStyle Libre 3, meaning that the reader and app are not impacted. Additionally, sensors from lots outside of the three noted can continue to be used and there is no impact to users outside of the US.

Intuitive Surgical’s New Robot Continues to Bedazzle

While still early in the launch, the new Dv5 surgical robot is living up to its hype.

By Amanda Pedersen

Intuitive Surgical's management team did its best to manage expectations for the continued da Vinci 5 (Dv5) momentum, but the company's newest surgical robot appears to be living up to the hype.

Intuitive placed 70 da Vinci 5 systems in the second quarter as the company moved into the next phase of its rollout for the new robotic surgical system. This represents about 47% of total U.S. system placements for the quarter.

"As the launch continues to progress in line with our plans, customer feedback points to improvements in precision, imaging, ergonomics and integration, the combination of which customers indicate has led to overall efficiency improvements," Dave Rosa, the company's president, said during an earnings call last week.

Intuitive designed the Dv5 with 150 enhancements over its previous multiport system. These enhancements include:

The enhancements, according to the company, include:

• Improved accuracy and precision:?da Vinci 5 is designed with new surgeon controllers and powerful vibration and tremor controls, making it the smoothest and most precise system Intuitive has developed to date.
• Next-generation 3D display and image processing:?da Vinci 5 is equipped with Intuitive’s highest quality and most natural 3D imaging system, enabling surgeons to see more today and supporting future generations of surgical endoscopes and vision software as those technologies evolve.
• Force-sensing technology:?Intuitive said its da Vinci 5 introduces Force Feedback technology and optional instruments designed to enable the system to measure, and surgeons to feel, subtle forces exerted on tissue during surgery. In preclinical trials with surgeons at all experience levels, Force Feedback demonstrated up to 43% less force exerted on tissue, which may translate to less trauma on tissue. The company noted that the ability to measure this force adds an important new data stream to surgical data science, which can bring future analytical insights supported by artificial intelligence. These optional Force Feedback instruments are cleared for use in the same procedures as da Vinci Xi, except pediatric and cardiac procedures, and there is a specific contraindication for the Force Feedback needle driver for use in suturing during hysterectomy and myomectomy procedures.
• Throughput and workflow enhancements:?da Vinci 5 has features designed to help increase surgeon autonomy and streamline surgeon and care team workflow. For example, da Vinci 5 has integrated key OR technologies, including insufflation and an electrosurgical unit. The system also includes an optimized user interface, with settings that are accessible by the broader surgical team and by the surgeon directly from the head-in menu. Surgeons have access to other key settings while head-in to help them stay focused on the surgical field. All of this, theoretically, translates into faster procedure times.
• Expanded computing power and advanced data capabilities:?The new multiport system has more than 10,000 times the computing power of da Vinci Xi (Intuitive's fourth-generation system). This enables new system capabilities and advanced digital experiences, now and in the future, including integration with Intuitive’s My Intuitive app, SimNow (a virtual reality simulator), Case Insights (a computational observer), and Intuitive Hub (edge computing system).
• Greater surgeon comfort:?The da Vinci 5 system features a redesigned console capable of customizable positioning, allowing surgeons to find their best fit for surgical viewing and comfort, including the ability to sit completely upright. The surgeon can make any necessary adjustments while their head is in the console, with options designed to fit different body types, including surgeons who are pregnant.

"Both Force Feedback and Case Insights bring new capabilities and analytics to surgery. We are encouraged by early insights these capabilities are presenting and are working hard to improve production and supply for Force Feedback instruments and smooth our computational pipelines and workflows for Case Insights," Rosa said. "We expect these capabilities to be powerful and the maturity and evidence of impact to build over coming quarters."

The company continues to be in a measured rollout phase for the Dv5 launch and continues to monitor several key metrics across this rollout phase. Rosa also mentioned ramping supply and responding to customer input.

"We expect our measured rollout to continue through the first half of 2025," Rosa said.

CFO Jamie Samath reiterated later in the call that da Vinci 5 placements will be constrained through the first half of 2025. He cited a planned hardware and software update to Dv5 in the second half of this year, along with a continued focus on maturing, manufacturing, and expanding capacity.

Intuitive hired about 550 employees during the second quarter, and Samath said about half of these new hires are in manufacturing operations to support growth in customer demand.

"With respect to how we've organized the measured rollout of Dv5, we've really focused the sales force on looking to place da Vinci 5 for incremental capacity for our customers versus the trading cycle," Samath said. "I think we'd rather get to a broad launch where we essentially have unconstrained supply relative to demand before we look at the trade-in cycle."

Despite management's comments about placements of the new surgical robotics system being constrained through the first half of 2025, analyst enthusiasm for the new system remains high.

Recommended Reads ??

?? What Kind of Planning Should Go Into Designing a Device?: Gavin Braithwaite, CEO of Cambridge Polymer Group, said that designers must take a next-generation mindset when developing devices. Braithwaite is set to host a session titled Don’t Develop Your Device Twice: Planning for the Next Generation, and the Next, and the Next….” at MEDevice Boston.

?? Dexcom’s Not-So-Flattering Earnings Results: The San Diego, CA-based company missed consensus for the quarter and saw its shares drop nearly 45% as a result.

?? From Toxic to Transparent: How Shuren's Leadership Transformed CDRH: A look back at how far the Center for Devices and Radiological Health (CDRH) has come under the leadership of Jeff Shuren, MD.

? What Devices Made FDA's Naughty List in July?: Find out which companies were deep in the depths of FDA recalls.

?? BD & Quest in Collaboration to Develop Companion Diagnostics: The collaboration comes on the heels of both companies making separate acquisitions.

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