From Financial Modeling Prep: 2025-04-04 15:59:00

Shares of Merit Medical Systems (NASDAQ:MMSI) fell by over 10% as China announced a 34% tariff on imported goods in response to U.S. tariffs. While most medtech firms are expected to handle the impact well due to localized production in China, Merit, with 11% of sales from China and no local manufacturing, may face challenges.

Many medtech companies, like Intuitive Surgical and GE HealthCare, have shifted production to China, shielding themselves from import risks. GE HealthCare, for instance, manufactures over 70% of its equipment in China, despite earning 12% of revenue from the country. This strategy has helped mitigate potential tariff-related issues.

Merit Medical’s vulnerability lies in its lack of localized infrastructure in China. With 11% of sales coming from the country and no manufacturing presence, the impact of the tariffs remains uncertain. Investors are worried that without local production, the company may struggle to compete if Chinese buyers opt for domestically produced alternatives to avoid tariff costs.



Read more at Financial Modeling Prep:: Merit Medical Plunges 10% as China Tariffs Spotlig…