Blog | 7/30/2025

Riding the GLP-1 Tide: How MedTech is Embracing GLP-1s

By Jessica Dubuque, Andrew Millar, and Darcy Krzynowek

The disruption of GLP-1 receptor agonists (GLP-1s) on medical markets extends far beyond the biopharma sector. Initially feared to be a threat to MedTech, with device OEMs seeing dramatic declines in stock prices in the latter half of 2023 (at the time, analysts estimated that nearly $370B in market cap losses occurred [1]), MedTech executives responded with messages of optimism, suggesting how GLP-1s could instead create tailwinds for various MedTech sectors [1].

Of course, MedTech companies aren’t leaving this up to chance. Thoughtful strategies are being employed by major OEMs to demonstrate the value their technologies deliver alongside GLP-1s. Here, we explore how MedTech companies are taking action to ensure they rise with the tide of GLP-1 instead of being swamped by them.

Advocating for a Multimodal Approach to Obesity Care

One area most directly threatened by GLP-1s is bariatric surgery. The American Society for Metabolic and Bariatric Surgery’s estimated volume of bariatric surgeries declined ~4% from 2022 to 2023 [2], and executives at companies such as Intuitive Surgical have confirmed that GLP-1s continued to impact total bariatric surgery volumes through 2024 [3]. Despite these short-term impacts, an argument can be made that GLP-1s will drive bariatric procedure volumes in the long term. As more patients seek out treatment for weight loss via GLP-1s, a subset will eventually require alternatives due to the side effects or expense of the drugs.

J&J MedTech, a leader in bariatric surgery instruments, is emphasizing the role of both procedures and medication in addressing obesity. In a recently published article, J&J executives discuss how GLP-1s have changed the way clinicians think about obesity treatment, and the opportunity for a multimodal approach to become standard of care. They advocate for the development of patient registries to understand how patients navigate through different therapeutic options over time [4].

Boston Scientific is similarly establishing its place in the obesity care paradigm through strategic marketing. BSC acquired Apollo Endosurgery in 2023 for their OverStitch device used in endoscopic sleeve gastroplasty (ESG). In a recent feature for World Obesity Day 2025, a patient shared her story of success with ESG after GLP-1s proved too expensive to be sustainable [5]. In another Boston Scientific article published in the Wall Street Journal, a patient’s story was shared of undergoing ESG after feeling laparoscopic bariatric surgery was too invasive [6].

Even bolder, metabolic therapeutic innovator Fractyl Health reshaped the development strategy for its Revita device to focus solely on obesity. The duodenal hydrothermal ablation device was previously in trials for Type 2 Diabetes as well, but investment in this indication was paused in January 2025. Instead, Fractyl is prioritizing development as a weight maintenance solution following GLP-1 discontinuation. Harith Rajagopalan, Co-Founder and CEO, explained, “The real challenge in obesity is no longer losing the weight, it is keeping the weight off…we are doubling down on our efforts in this space” [7]. Fractyl’s decision affirms the belief that there is room for both GLP-1s and interventional approaches to weight loss to grow.

Adapting Commerical Strategy in OSA Management

MedTech companies in the obstructive sleep apnea (OSA) space were also shaken up by GLP-1s. Given the link between obesity and OSA, investors expressed concerns that declining rates of obesity might shrink the OSA market. Then in December 2024, Eli Lilly’s Zepbound got specific approval for treatment of adults with moderate to severe OSA and obesity, furthering the potential for disruption.

ResMed is proactively addressing this threat through targeted provider outreach. In a recent investor call, CEO Mick Farrell explained how their field force is engaging directly with highest-volume PCP prescribers of GLP-1s, anticipating that Lilly will target the same providers for Zepbound marketing. ResMed is performing continuing medical education with this group, emphasizing the role of CPAP, APAP, and bilevel therapies as the gold standard in OSA care. Farrell noted that this effort has driven increases in device prescriptions, which they hope to sustain as Lilly ramps up its marketing efforts for OSA in the months ahead [10].

Inspire Medical Systems, manufacturer of a hypoglossal nerve simulator implant for OSA, is also hoping to capitalize on any potential GLP-1 tailwinds. CEO Timothy Herbert explains that patients who will be helped by Zepbound are outside of the addressable population for Inspire, due to different causes of their sleep apnea. Herbert further emphasizes the opportunity for GLP-1s to help patients lose weight and qualify for the implant – Inspire is only approved for patients with BMI up to 40, and some payer coverage policies limit this further. The company has not yet seen an impact from GLP-1s on its sales, but they are collaborating with clinical sites to gather data on this hypothesis [11].

Proving the Value of Drugs and Devices in T2D

Major players in diabetes tech are generating data to show the value of GLP-1s and devices together in managing the condition. Abbott and Dexcom both performed real-world data analyses showing that T2D patients initiating GLP-1s are more likely to use and adhere to CGMs [12]. Further, a large real-world data analysis from Abbott showed that patients on both GLP-1s and CGMs show greater improvements to HbA1c levels than when GLP-1s are initiated alone [13].

These findings largely calmed investor concerns about the CGM market, but data collection is still ongoing. Dexcom announced at JPM 2025 initiation of a randomized-controlled trial broadly targeting people living with T2D, including those on GLP-1s, to prove CGMs’ impact on outcomes in this population. CEO Kevin Sayer explained, “We’re not being bashful about this study. We know that we drive better outcomes…and we’re very cautiously optimistic that we’ll get the data that we’re looking for” [14].

The potential for GLP-1s to disrupt the insulin pump market was also initially feared by investors. Pump makers with recent T2D indication expansions designed their trials with this concern in mind. In Insulet’s SECURE-T2D pivotal trial for Omnipod 5, more than half of participants were on a stable dose of GLP-1s. Significant improvements to HbA1c were seen with Omnipod 5 regardless of GLP-1 use, a critical finding from management’s perspective [15,16].

Similarly, Tandem’s pivotal trial of its Control-IQ+ automated insulin delivery (AID) technology in people living with T2D had nearly half of participants using GLP-1s. The technology received clearance for T2D in February of this year, and results from the trial showed that patients already on GLP-1s saw improvements to A1c with the addition of the AID. The additive benefit was specifically highlighted by CEO Jon Sheridan in a recent earnings call [17,18].

Conclusion

MedTech companies are acting nimbly to showcase the value their technologies will deliver in the era of GLP-1s. The product categories examined here are just a handful of examples where device manufacturers are working to position themselves alongside GLP-1s, rather than in opposition to them. We expect there will be a need for similar strategic action across the broader device industry, with other areas such as cardiovascular surgery, kidney care, wound care, and orthopedics facing increasing pressure.

Health Advances is able to track procedure volumes over time to support the fact base of GLP-1 impact on technology usage. Our cross-sector teams are eager to support clients in shaping their commercial strategies as clinical paradigms evolve.