BUZZ-Medical device makers fall after US tariffs spark cost concerns

Reuters02-03 19:29
BUZZ-Medical device makers fall after US tariffs spark cost concerns

** Shares of medical device makers fall in premarket trading after U.S. President Donald Trump ordered sweeping tariffs on goods from Mexico, Canada and China

** Shares of Intuitive Surgical ISRG.O fall 2.3% to $558.99, Boston Scientific BSX.N fall 1.3% to $100.99

** Significant portion of ISRG's surgical instruments and accessories, which constitute more than ~60% of its sales, are manufactured in Mexico, Baird analysts say

** Medtronic also has manufacturing facilities in Mexico and China and estimate tarrifs to impact EPS by up to ~3.4%, according to BTIG analysts

** Mexico is largest source country of ~40% of imported medical devices in United States, J.P.Morgan analysts say

** The companies did not immediately respond to requests for comment

** Trump imposed 25% tariffs on Mexican and most Canadian imports and 10% on goods from China

** Up to last close, BSX was up ~58%, ISRG was up ~49% and MDT was up ~4% over past 12 months

(Reporting by Mariam Sunny in Bengaluru)

((Mariam.ESunny@thomsonreuters.com;))

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