I'm Vivian Wohl, Portfolio Manager, Federated Hermes.
What are you excited about?
I'm excited that for the first time, we're seeing a confluence of positive developments, both on the regulatory front and on the payer front. And it really takes both of those to work together for the medtech space to be a good place to invest. And so what do I mean by that, is that the FDA environment has been pretty healthy for a while, but the payers have long put up roadblocks to adoption of new technologies. And I think today, in this COVID environment, nobody wants to be on the wrong side of this pandemic. So barriers to adoption are coming down. Payers are opening up reimbursement for things that they have long resisted. And it's exciting. It's especially exciting for telemedicine. It's especially exciting for new kinds of diagnostic testing, for testing of conditions that can be moved from the hospital setting to the home setting.
What are the current challenges?
The challenges are many, not the least of which is keeping hospitals open. And as we're seeing today, and in some states like Florida, Texas, Arizona, you do see ICUs that are reaching capacity and hospitals that may, in select cities, need to shut down elective surgeries once again. I don't think that's something that we're going to see across the whole country, but it is something that we're monitoring on a city by city basis.
Disclosure: Views are as of July 8, 2020 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Investing in IPOs involves special risks such as limited liquidity and increased volatility. Federated Global Investment Management Corp. 20-30302 (7/20)