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July 17 (Reuters) – Intuitive Surgical shares fell more than 12% before the bell on Friday after it maintained its global growth forecast for procedures performed with its da Vinci surgical robots and warned that changes to some insurance plans could hurt demand.
The update came as a disappointment to Wall Street analysts, especially after medical device maker Abbott argued that enrollment declines related to Obamacare or Affordable Care Act plans materially affecting the medical technology and diagnostics industry was a “flawed assumption”.
HCA Healthcare, the largest for-profit U.S. hospital operator, earlier this week had warned of softer demand for surgical procedures and increasing numbers of uninsured patients, with many Americans dropping ACA plans after pandemic-era subsidies expired.
“We thought medtech was set for a relief post ABT (Abbott) print,” Evercore ISI analyst Vijay Kumar said, adding that softness in Intuitive’s U.S. procedures, which is slowest in three years, rekindles the debate.
COVERAGE CHANGES AFFECT CARE TIMING
Intuitive expects 2026 worldwide da Vinci-assisted procedure growth to come near the midpoint of its forecast of 13.5% to 15.5%.
Da-Vinci systems are used in a broad range of procedures, including weight-loss surgeries and treatments for digestive, urologic and cardiac conditions.
Second-quarter da-Vinci procedure growth in the U.S. was 12%, moderated from Intuitive’s expectations at the start of the year, predominantly in surgeries that can be deferred, it said.
“In our customer conversations, some have said changes in patient coverage and premium dynamics may be affecting when patients seek care and move forward with treatment,” CEO David Rosa said on a call on Thursday.
The expiration of enhanced ACA premium subsidies, according to Intuitive, had a “modest adverse impact” on second-quarter U.S. da-Vinci procedure growth.
“Procedures drive the whole revenue build downstream, so a key piece of the story is figuring out how much of an impact the ACA subsidy expirations have had — management isn’t yet able to yet quantify it, but our sense is that it’s a small percentage impact,” said J.P.Morgan analyst Robbie Marcus.
(Reporting by Siddhi Mahatole and Sriparna Roy in Bengaluru; Editing by Shilpi Majumdar)
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