Every year, as part of their strategic planning, executives’ minds turn to setting performance targets—and then achieving them. In so doing, those at medical-device companies should bear in mind the high hopes shareholders have for future growth. Can these hopes be met?
The global medical-device sector has performed well in recent years, recording average total returns to shareholders (TRS) of 18 percent a year from 2011 to 2016, compared with 15 percent for the S&P 500. A subset of the largest medical-device companies also outperformed the S&P 500 over this time frame, averaging 15.5 percent TRS (Exhibit 1).
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