Danaher unveiled its first AI-powered autonomous laboratory on October 7, with ramp-up expected in early 2027. Installed at Abcam, the platform is designed to discover antibodies and affinity reagents through a continuous “design-build-test-learn” loop. AI models propose molecules, robotic systems produce and test them, and each result is used to retrain the model for the next design cycle. The stated targets are ambitious: accelerating discovery by up to eightfold and increasing annual reagent production capacity tenfold, from a few dozen to several hundred. These figures remain design targets that have yet to be validated; the announcement’s main significance lies in the platform’s architecture. The laboratory combines technologies from five Danaher operating companies—Beckman Coulter Life Sciences, Cytiva, Genedata, IDT and Molecular Devices—orchestrated by Automata, a start-up in which Danaher invested in January. Danaher is positioning the project within a broader programme of “smart” instruments that can be controlled through software and generate data directly usable by AI. For a research tools provider, selling integrated workflows rather than standalone equipment is a way to differentiate itself from Thermo Fisher and Agilent. It also offers a means of increasing the share of recurring revenue generated by consumables and software. Over the longer term, the automation of early-stage research could become a structural driver of demand for laboratory equipment, and Danaher is positioning itself to capture that value.In September, CPR Invest – MedTech declined by 3.5% in euro terms compared with a 4.07% decrease for its benchmark, the MSCI World Health Care Equipment & Supplies 10/40 Index, representing an outperformance of 56 basis points. In an environment that once again proved unfavourable for growth stocks, the fund therefore cushioned part of the market decline. Relative performance was driven almost entirely by stock selection, which contributed 45 basis points, while the sector allocation effect remained virtually neutral. The month was marked by renewed interest-rate pressures amid monetary tightening in both the United States and Europe, rising oil prices, and higher US government bond yields. This environment weighed on the valuation multiples of growth companies, which account for a large share of the medical technology universe. These macroeconomic factors were compounded by several sector-specific developments: Stryker reported longer-lasting supply constraints than anticipated and continued weak demand for hip implants; Boston Scientific announced a cyberattack that disrupted its manufacturing and shipping operations; and Cooper Companies issued a weaker-than-expected outlook. These announcements led to significant performance dispersion, with Orthopaedics declining sharply, while Surgery benefited from gains in Intuitive Surgical. Against this backdrop, stock selection in Cardiology and Neurology was the main driver of outperformance, contributing approximately 46 basis points. AtriCure, a high-conviction off-benchmark holding, rose by 18.9% and alone contributed nearly 40 basis points. The stock continued to benefit from strong commercial momentum and the upgrade to its full-year guidance announced with its second-quarter results. Other specialist holdings, including Alphatec, also supported relative performance. Diagnostics contributed 36 basis points, primarily thanks to Thermo Fisher, which rose by 11.9%, as well as Danaher. Both companies benefited from the resilience of life-science tools and provided favourable diversification amid the challenges faced by several medical-device manufacturers. The fund’s lack of exposure to Cooper Companies, which fell by 17.5% following disappointing guidance and the abandonment of plans to divest CooperSurgical, contributed 20 basis points. The absence of Zimmer Biomet, which was affected by broad weakness in the orthopaedics segment, together with underweight positions in ResMed and EssilorLuxottica, also proved beneficial. Conversely, the main detractor was the fund’s underweight position in Intuitive Surgical, whose 10.3% gain cost the fund 18 basis points. The off-benchmark position in Enovis, which declined by 24.0%, the underweight position in Medtronic, and the overweight position in Insulet also weighed on performance. Lastly, Stryker made a negative contribution, as the fund’s modest overweight position amplified the impact of the stock’s 12.8% monthly decline.The U.S. medical technology sector is entering 2027 from a more favourable position, following several years of relative underperformance and slowing growth. In 2026, it is expected to underperform the S&P 500 for the seventh time in eight years, weighed down by the concentration of equity-market gains in artificial intelligence, as well as concerns over post-pandemic normalisation, GLP-1 therapies, hospital budget constraints and several company-specific challenges. This lack of investor confidence has brought the average valuation of large-cap companies down to approximately 16 times forward earnings, its lowest level in a decade and its widest relative discount to the S&P 500 since the technology bubble. Nevertheless, this weakness appears excessive given that underlying fundamentals remain solid. Organic revenue growth for large-cap companies is expected to reach 5.6% in 2026, broadly in line with its 20-year historical average. The main concern lies less in the absolute level of growth than in its deceleration from the 8.5% peak recorded in 2023. Company-specific headwinds—including the reset of Abbott’s Nutrition business, the cyberattack affecting Stryker, and Boston Scientific’s challenges in electrophysiology and with Watchman—have also reinforced the perception of a broad-based deterioration. The central scenario for 2027 is based on stabilisation, or even a modest reacceleration, in organic growth towards 6%, supported by easier comparison bases, the easing of certain temporary headwinds and contributions from new products. Innovation remains the sector’s main structural source of support. U.S. regulatory approvals are accelerating, with 24 new premarket approvals already granted in 2026 and the median approval time falling to 284 days. Electrophysiology, transcatheter valves, robotic surgery, diabetes, neuromodulation and vascular disease continue to offer sustainable growth opportunities. Several product launches and clinical readouts could support investor sentiment in 2027.