The Leadership Dividend

This Commentary:

Analyses key takeaways from JPM’s 2025 CEO Call Series featuring 12 top-performing MedTech leaders
Reveals how innovation, disciplined capital allocation, and operational agility drive sustained outperformance
Contrasts high performers with underperforming peers stuck in legacy models and reactive strategies
Offers a sharp, urgent lens for boards and executives to reassess priorities and leadership behaviours
Makes the case that bold, long-term thinking is a prerequisite for MedTech success

If you are a MedTech CEO, board director, or senior executive still steering the future with one eye on the past, J.P. Morgan’s 2025 CEO Call Series is both a mirror and a wake-up call. Each CEO was asked: “How do you and your board create shareholder value?” The responses - drawn from twelve leading companies, including ABT, ATRC, BDX, BSX, COO, GEHC, HAE, INSP, MDT, PODD, SYK, and ZBH - form the foundation of this Commentary.

What emerges is an analysis of sustained outperformance. These companies are not chasing quarters. They are building durable advantage through long-term discipline, scaled innovation, and relevance in an industry that does not wait.

Grounded in executive insights, investor perspectives, and proprietary data, the JPM report describes what sets this leadership cohort apart: a proactive stance on transformation, disciplined capital allocation, and an intent to shape the future of healthcare technology. In a sector defined by disruption, these leaders are writing the next chapter.

J.P. Morgan’s thesis is clear: consistent success in MedTech is never accidental. It is the product of deliberate, often difficult, strategic choices - anchored in long-horizon thinking and an understanding that advantage compounds over time. From Abbott to Stryker, this group aligns around three disciplines: (i) innovation-led growth, (ii) rigorous capital deployment, and (iii) operational agility linked to long-term intent. These are not slogans - they are visible in every investment decision, leadership behaviour, and incentive structure.

For companies clinging to legacy assets, guided by outdated assumptions, or focused on marginal gains, the contrast is stark. Every MedTech firm faces the same macro forces: rising care complexity, digital acceleration, shifting reimbursement, and the transition to value-based ecosystems. Yet only a few navigate with clarity, conviction, and coherence.

This Commentary focuses on those few - not to dismiss the sector’s challenges, but to extract the choices that drive enduring performance. For others, the message is blunt: underperformance is no longer just a market problem. It is a leadership one. And in today’s MedTech landscape, accountability is not optional. It is the price of relevance.

In this Commentary

This Commentary distils strategic insights from J.P. Morgan’s 2025 CEO Call Series, analysing how 12 top-performing MedTech companies are outperforming through innovation-led growth, disciplined capital allocation, and operational agility. It challenges underperforming leaders to confront uncomfortable truths, rethink legacy strategies, and adopt a future-focused mindset. The core thesis: in today’s MedTech landscape, bold, long-term leadership is not optional - it is the price of relevance.

Innovation Is the Growth Model - Not Just a Line Item

In today’s MedTech landscape, innovation is no longer a function to fund - it is the foundation to build upon. The high-performing companies profiled by JPM are not just increasing R&D budgets or chasing the next product iteration. They are treating innovation as a strategic engine - integrated across clinical development, digital infrastructure, go-to-market models, and how care is delivered.

This distinction is critical. It is not about how much you invest; it is about how intentionally you innovate. The standout leaders - Boston Scientific, Insulet, Abbott, among others - are deploying innovation as a lever to reshape categories, expand addressable markets, and build economic moats. For example, Mike Mahoney’s strategy at Boston Scientific fuses internal R&D with a venture-style approach to external innovation, systematically placing bets on next-gen technologies that can transform care and accelerate growth. At Insulet, a focus on patient-centric simplicity and digital-first integration has enabled consecutive years of 20%+ growth, supported by a scalable, high-margin, recurring revenue model that most MedTechs can only envy.

By contrast, many underperforming players remain mired in a reactive, tactical posture - adjusting legacy offerings, shadowing competitor moves and approaching innovation primarily as a capital expenditure rather than a lever for strategic distinction. While such companies may meet short-term targets, they often forgo the broader opportunity: to shape clinical pathways, influence standards of care, and secure premium economics. In some cases, this posture reflects not just organisational inertia, but a deeper leadership mindset - one that prioritises operational continuity over reinvention. Progress, in this context, may depend as much on the willingness of senior leadership and boards to acknowledge their role in setting the tone for strategic ambition as it does on the tactics themselves. Only when such responsibility is embraced can a more transformative path forward take root.

The lesson: innovation should not just be a source of new products. It must be a driver of category leadership, margin expansion, and long-term shareholder value. If your R&D strategy is not explicitly aligned to those outcomes - if it does not scale across clinical, digital, and commercial domains - you are not investing in innovation. You are spending capital without building future relevance.

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Bet Boldly Where the Growth Is - And Prune What Isn’t

One of the most striking and consistent patterns emerging from the JPM 12 is clarity - and courage - with which high-performing MedTech leaders reallocate capital. These CEOs are not protecting historical strongholds or clinging to legacy product lines. They are systematically shifting their portfolios toward higher-growth, higher-margin segments with the discipline of long-term investors and the urgency of entrepreneurs.

This is not just a matter of portfolio management - it is strategic renewal in action. Consider Haemonetics, which has transformed from a plasma-concentrated business to one where ~85% of its revenue now flows from high-growth, high-margin categories. Or Stryker, which exited low-growth spinal implants to double down on peripheral vascular and other adjacencies with greater runway. Becton Dickenson (BD), meanwhile, is redeploying capital into secular growth arenas like biologics, AI-enabled diagnostics, and smart monitoring - driving up its compound annual growth rate (CAGR) and repositioning the company for sustained value creation.

This aggressive capital reallocation suggests that the leading MedTechs are not defending yesterday’s relevance - they are buying into tomorrow’s opportunities. And crucially, they are willing to divest, exit, or deprioritise non-strategic assets to fund that future. This is a pragmatic recognition that strategic clarity requires trade-offs - and growth requires fuel.

By contrast, many traditional peers remain anchored to legacy franchises that have long since ceded both growth momentum and pricing power. The hesitation to divest or reconfigure these assets often presents as prudence, but more often reflects inertia masked as strategic caution. The consequences are evident: reduced investment flexibility, a waning competitive edge, and a strategic narrative that struggles to engage stakeholders. In many instances, these outcomes are less about structural constraints and more about leadership choices - implicit decisions to preserve the familiar over pursuing the necessary. It is only when senior teams are willing to confront these trade-offs directly that the conditions for meaningful reinvention can emerge.

The lesson: the top performers are not just reallocating capital - they are reallocating conviction. If you are still optimising yesterday’s business, you are missing tomorrow’s advantage.

Operate with Lean Discipline

One of the defining insights from the JPM survey of 12 CEOs is the fact that the most successful MedTech leaders are mastering the dual mandate of operational discipline and strategic boldness. They are not choosing between near-term performance and long-term reinvention - they are delivering both. Their businesses are built to run lean, act fast, and invest decisively. And they are doing it with a level of precision that suggests capital is not just managed; it is weaponised.

Take GE Healthcare, which has emerged from its spin-off with a sharper cost base, clearer accountability, and a renewed focus on solving end-to-end care challenges. Or Becton Dickinson, where the “BD Excellence” initiative is driving gross margin expansion while simultaneously funding innovation in biologics and smart monitoring. These companies are not just trimming fat - they are building agility into their core. Margin expansion becomes a growth enabler, not just a reporting line.

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Even MedTech giants with legacy complexity - Medtronic, for instance - are embedding financial discipline into their strategic pivots. They are not waiting to be “fixed” before investing in innovation. They are finding ways to do both, using leaner operations and sharpened performance metrics to unlock EPS leverage, restore credibility, and buy back strategic optionality.

In contrast, legacy organisations often find themselves weighed down by remediation fatigue, inflated SG&A structures, and diffuse accountability models. Operational constraints in these contexts are too often treated as fixed boundaries rather than challenges to be reshaped. Yet these constraints are frequently the result of cumulative choices - to postpone difficult decisions, to preserve organisational comfort, and to manage around complexity rather than address its root causes. While these patterns may emerge gradually, they are rarely accidental. More often, they reflect a leadership posture that prioritises stability over clarity and control over coherence. Reversing this trajectory begins with a willingness at the top to reframe constraints not as inevitabilities, but as opportunities to lead with intention.

The lesson: lean operating discipline is not about austerity - it is about creating strategic freedom. It gives you the margin to reinvest, the resilience to adapt, and the confidence to lead. Without it, you are not building the future. You are funding decline.

What Underperforming MedTechs Must Do

It is easy to blame underperformance on external headwinds. Interest rates, labour shortages, remediations, supply chain volatility, regulatory drag. But the outperformers in JPM’s 2025 CEO Series are facing the exact same macro pressures. They are not shielded from turbulence - they have built organisations designed to navigate it. The delta is not in the environment. It is in the response. And that response is rooted in mindset, governance, and execution.

Too many underperforming MedTechs are trapped in a reactive operating model. Strategy is filtered through the lens of remediation, not reinvention. Capital is consumed by constraints, not deployed toward opportunity. Innovation is treated as discretionary, while yesterday’s products are defended with shrinking returns. In these environments, leadership teams are managing downside risk while others are creating upside leverage. This is not prudence; it is drift.

The deeper issue is strategic posture. While the leaders in the JPM cohort are reshaping their portfolios, building next-generation capabilities, and investing in markets with durable tailwinds, many underperformers are anchored to business models, geographies, and products that no longer command growth or strategic relevance. The playbook has changed - but the bottom quartile is still running old plays.

This demands questions that boards and executive teams can no longer defer:

Are we investing behind platforms and markets that could double our enterprise value - or just preserving legacy segments that no longer differentiate?
Is our culture built to reward innovation, agility, and accountability - or has it normalised caution and incrementalism?
Are we allocating capital toward the company we aspire to be - or are we trapped in sustaining what we used to be?
Can our leadership team credibly claim to be shaping the market's future - or are we simply reacting to forces shaped by others?

The most painful realisation is often the most liberating: underperformance is not just a financial problem - it is a leadership problem. But it is also a solvable one. The CEOs in JPM’s research are not just out-executing. They are out-thinking, out-prioritising, and out-focusing. This is the bar. If your organisation cannot meet it, the market - and your competitors - will move on without you.

Takeaways

The CEOs spotlighted in J.P. Morgan’s 2025 series are not just outperforming - they are redefining what high performance looks like in MedTech. They have embedded innovation into their DNA, institutionalised financial discipline, and made strategic choices that reflect clarity of vision, not comfort with consensus. They are not waiting for stability to return - they are creating competitive advantage during volatility. And the markets are rewarding them accordingly - with superior margins, outsized market share gains, and rising valuations.

For leaders of legacy MedTechs, the message is not just a benchmark - it is a provocation. The time for incrementalism has passed. If your leadership team is not actively interrogating its assumptions, reallocating its bets, and rebuilding for relevance, then you are choosing passivity in a market that punishes hesitation. This is a moment that demands conviction. That demands leadership willing to rethink legacy portfolios, challenge internal orthodoxies, and reorient around where value will be created - not where it used to be.

The next decade in MedTech will not belong to the cautious. It will belong to the category-shapers - the ones who move first, think long, and act boldly. The future is being claimed now. The only question is: are you shaping it - or watching it take shape without you?

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