Intuitive
Surgical
23 U.S. (ISRG, $514)
THE ROBOT surgeons
are here. And they’re
making investors a
boatload of money.
Intuitive Surgical has
long been ahead of the
game when it comes
to “minimally invasive
surgery”—technology
that uses futuristic ro-
botic arms, controlled
remotely by humans,
to slice, dice, and
otherwise manipulate
internal organs with-
out the need to actu-
ally cut a patient wide
open. Intuitive is fac-
ing competition from
firms like Medtronic
and Johnson & John-
son but is expected
to extend its reach
through a shift toward
a leasing model.
Coupled with the
increasing popular-
ity of robot-assisted
surgery, expect to see
the growth continue.
Vertex
Pharmaceuticals
10 U.S. (VRTX, $169)
Boston-based drug-
maker Vertex, which
specializes in rare dis-
orders like cystic fibro-
sis, doesn’t always at-
tract Big Pharma–level
attention. But the firm is
on a serious growth tra-
jectory, slated for dou-
ble-digit expansion in
the coming years, per
analysts. And the com-
pany is branching out
into new, brand-name
science it hopes can add
to its $43 billion market
value, including a recent
$950 million deal to ac-
quire Semma Therapeu-
tics—a startup that
aims to use stem cells
to cure Type 1 diabetes.
Jiangsu Hengrui
Medicine
14 CHINA ($11)*
Hengrui, which made
$2.5 billion in sales last
year, invests twice as
much as any other
pharma in R&D, and its
investments are paying
off: It’s China’s largest
pharmaceutical com-
pany and a leader in in-
novation. China’s plan
to bulk-purchase ge-
neric drugs in 2020 will
drive down industr y
prices, but analysts say
only 1% to 2% of Jiang-
su’s revenue will be im-
pacted, while competi-
tors in its peer group
will be more exposed.
Illumina
28 U.S. (ILMN, $297)
The genetic-testing
company hit a buzz saw
when it downgraded its
2019 earnings forecast
earlier this year follow-
ing a slowdown in the
consumer market. But
the fact remains that
Illumina’s platforms
dominate the genomic
sequencing space (its
technology has helped
slash the cost of whole
genomic sequencing to
mere thousands of dol-
lars while considerably
speeding up the pro-
cess).The $44 billion
company has “demon-
strated an uncanny
ability to out-innovate
and extend its compet-
itive lead,” according to
J. P. M o r g an.
Edwards
Lifesciences
29 U.S. (EW, $225)
Heart disease causes
one in four American
deaths ever y year. Ed-
wards Lifesciences,
which creates artificial
heart valves, including
for patients deemed
too risky for open sur-
gery, has significantly
expanded its interna-
tional footprint and
shows no signs of slow-
ing down. The most
promising growth ave-
nue is among lower-risk
patients who require
noninvasive heart valve
replacements.
Alexion has had its share of controversies. Concerns
over the company’s sales practices have dogged the
rare-disease biotech and led to major C-suite
shake-ups. But the firm has attempted to rebuild
trust among patients and investors, and has ac-
quired or partnered with upstart biotechs such as
Syntimmune and Caelum Biosciences. Though these
deals are filled with early-stage and unproven as-
sets, many investors still see upside.
Alexion
Phar maceu ticals
41 U.S. (ALXN, $95)
HEALTH & MEDICINE
Give them a hand:
Intuitive Surgical
dominates minimally
invasive surgery.
*Shares are traded only on a local exchange in China.
CONCERT: COURTESY OF LIVE NATION; INSTRUMENTS: COURTESY OF INTUITIVE SURGICAL
