U.S. Medical Devices & Supplies: MedTech Innovation and Growth Alive and Well in Southern California – Takeaways from Our 2026 Virtual Bus Tour

研报英文原文证据摘录

U.S. Medical Devices & Supplies: MedTech Innovation and Growth Alive and Well in Southern California – Takeaways from Our 2026 Virtual Bus Tour

Barclays | U.S. Medical Devices & Supplies

market growth. Concerns around macro spending persist (patient willingness to adopt

higher-cost tubeless systems), but management believes improved form factor plus market

access will alleviate these barriers and support incremental share capture.

•• Formulary Progress Ahead of Plan; ASP Volatility Driven by Mix Shift: Mgmt noted that

they reached ~40% formulary coverage (low end of 40–50% FY target) already in 1Q26, with

momentum ahead of the typical July contracting cycle and some payers already locked for

2027 formularies. U.S. ASP pressure in 1Q26 was driven by mix shifts (government vs. private

plans) and contract variability, rather than structural pricing erosion. Transition dynamics

(pharmacy vs. DME) will continue to create near-term ASP and revenue volatility but should

normalize as volumes scale and payer coverage broadens.

•• Pump Economics Reset: Near-Term Revenue Headwind, Long-Term Utilization Tailwind:

The shift to pharmacy structurally reduces upfront pump revenue (given pay-go model), but

creates a more recurring, utilization-driven revenue stream tied to supplies. In 2026, ~20% of

pump shipments expected as pay-go with downstream supply pull-through, while ~10% of

patients expected to source via pharmacy (mix of conversion + new starts). Management

emphasized that copay improvements vs. DME are critical to accelerating adoption, though

physician education and workflow disruption (new prescriptions required vs. annual DME

scripts) remain gating factors.

•• OUS Expansion Driving Structural Upside; Direct Model to Lift Pricing (~30% over 4