Deutsche Bank has warned that consumables-heavy medical device companies face the greatest exposure to rising petrochemical input costs, as recent polymer price moves add a new layer of cost pressure across UK healthcare and life sciences.
Analyst Kane Slutzkin notes that polypropylene and polyethene prices have risen around 35-40%, creating potential headwinds for companies whose products rely on polymer-based inputs.
Deutsche Bank identifies ConvaTec Group PLC (LSE:CTEC), Smith & Nephew PLC (LSE:SN) and AMS as carrying the clearest structural sensitivity, given their reliance on polymer-intensive consumables, though the bank says near-term impact is moderated by supplier contracts, product mix and pricing power.
Pharma and tools companies, including Hikma and Oxford Nanopore, sit in the middle of the exposure spectrum, with more indirect sensitivity owing to broader, diversified cost bases and lower dependence on polymer inputs.
Companies with biologics or diagnostics exposure, such as Oxford Biomedica and Niox, show limited direct exposure, while asset-light businesses, including Creo Medical Group PLC (AIM:CREO, FRA:1RC, OTC:CMEOF) and Tristel, are similarly well insulated.
Services companies such as Spire Healthcare and CVS Group, along with distribution group Uniphar, are described as largely protected from the pressure.