Declining Surgery Volumes Hits Sentiment Towards Medtech

Research evidence excerpt

Declining Surgery Volumes Hits Sentiment Towards Medtech

Japan | Medical Supplies & Devices EquityJulyResearch14, 2026

Declining Surgery Volumes Hits Sentiment

Towards Medtech

Sentiment towards Japan Medtech may weaken following a sell-off in

US medtech stocks overnight. Hospital operator HCA Healthcare reported

weaker-than-expected surgical volumes, sparking concerns about demand

for procedure-related devices. Among Japan names, Asahi Intecc and

Terumo have the greatest exposure to US procedure volumes. The

implications for Olympus are more limited, while Sysmex is likely to be

largely unaffected.

Surgery volumes decline. US hospital operator HCA Healthcare cut FY26 guidance after

reporting softer-than-expected surgical volumes in Q2. While same-facility admissions

remained healthy, inpatient and outpatient surgeries declined 2.3% and 3.4%, respectively.

Management attributed the decline in surgery volumes to changes in insurance coverage.

Medtech investors may be concerned that a trend towards lower-quality insurance coverage

may reduce demand for surgical procedures.

Stocks decline. Shares of procedure-exposed companies declined, with Intuitive Surgical

declining 6.8% (NASDAQ up 0.9%) and Boston Scientific declining 4.5% (S&P500 up 0.4%).

While it is too early to conclude that US procedure growth is slowing, investors may wish to

consider the relative exposure of Japanese medtech companies to US procedure volumes.

Asahi Intecc and Terumo most exposed. In our view, Asahi Intecc and Terumo are the most

exposed to a potential slowdown in US procedure volumes. Implications for Olympus and

Sysmex, on the other hand, are much more limited. Asahi Intecc's revenue is dominated

by guidewires used in cardiovascular and other interventional procedures, although North