Stock Markets March 12, 2026

Raymond James: Med Tech Prices Largely Stable in 2025 After Short Upturn

Analysis shows industry pricing flat when excluding JNJ's Stelara loss of exclusivity; volume, not price, continues to drive revenue

By Marcus Reed ABT BDX JNJ SYK ZBH
Raymond James: Med Tech Prices Largely Stable in 2025 After Short Upturn
ABT BDX JNJ SYK ZBH

Raymond James analyzed decade-long pricing data for medical technology and found that, after a period of deflation followed by modest price gains in 2023-24, reported pricing in 2025 was effectively flat once Johnson & Johnson's Stelara loss of exclusivity is removed. The firm concludes that volume growth, not price increases, remains the key revenue driver and that new product development is critical for future pricing improvement.

Key Points

  • Raymond James found Med Tech pricing overall is flat in 2025 when Johnson & Johnson's Stelara loss of exclusivity is excluded.
  • From 2015 to 2022 the sector experienced price deflation; pricing turned positive in 2023-24 but had minimal impact on revenue growth.
  • Volume growth, supported by new product development, remains the primary driver of revenue for the med tech sector.

Raymond James reviewed publicly available pricing information covering 2015 through 2025 and concluded that medical technology pricing has been largely flat in 2025 when the outsized effect of Johnson & Johnson's Stelara loss of exclusivity is removed from the data set.

The firm's analysis highlights a multi-year pattern. From 2015 through 2022, MED Tech pricing experienced seven consecutive years of deflation. That trend shifted in 2023 and 2024 when reported pricing turned positive, a move Raymond James attributes to pricing responses linked to COVID-19-related inflation. Despite that temporary improvement, the firm notes that price changes had a negligible effect on overall revenue growth during the covered period.

In 2025, reported pricing for the sector moved negative on a headline basis, but Raymond James emphasizes that the decline was driven largely by the loss of exclusivity for JNJ's Stelara. Because Johnson & Johnson reports pricing at the corporate level and includes its Innovative Medicine business in those figures, the JNJ impact materially influenced the aggregate result. Excluding JNJ from the sample, the firm finds Med Tech pricing to be effectively flat in 2025.

The study focused on five companies that consistently disclose annual pricing trends in their 10-K filings: ABT, BDX, JNJ, SYK, and ZBH. Collectively, these firms accounted for roughly $170 billion in revenue in 2025; removing JNJ's Innovative Medicine segment reduces that figure to about $110 billion. Raymond James supplemented the company-reported figures with government data from FRED's Med Devices Producer Price Index and data from HCA Healthcare, the largest hospital provider in the United States.

Raymond James observed that many med tech end-markets retain favorable competitive structures, and the firm expressed surprise that pricing has not trended higher in response. The analysis indicates volume remains the dominant driver of industry growth, underscoring the importance of new product development as the most significant lever for achieving sustained pricing improvement.


Methodology note: The conclusions are based on a combination of company-reported pricing data in annual filings and supplemental sector measures, as specified above.

Risks

  • Loss of exclusivity for major pharmaceutical or device products can materially distort sector-level pricing metrics - impacts hospital procurement and med tech revenue reporting.
  • Continued reliance on volume rather than price increases means med tech companies remain exposed to demand fluctuations in hospital and provider networks.
  • If pricing fails to improve, companies may face pressure on revenue growth unless new products generate higher unit volumes or differentiated pricing - affecting investor expectations in med tech equities.

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