Tariff Talks: One-on-One with MedTech Experts – Episode 1 Part 2

Episode 1 – Part 2: Tim Sheehan, Managing Director at BlackPoint Capital Markets

Interviewed By Guillaume Viallaneix, President at MedTech Momentum and Editor-in-Chief of The MedTech Digest

Tim, in the first part of our discussion, we covered how tariffs and political uncertainty are reshaping capital flows and depressing valuations in the MedTech space. But we also explored how, despite the turbulence, disciplined execution and bold strategic moves can help companies not only survive but emerge stronger. 

Today, I want to focus on President Trump’s recent move to delay tariffs for most countries by 90 days while raising them to 125% for China. 

Guillaume: Tim, with the recent 90-day tariff delay for most countries, except China, how do you see these changes influencing the MedTech industry’s global investment landscape?” 

Tim Sheehan: It’s a mixed bag. On one hand, the 90-day delay offers a glimmer of hope that maybe the administration is using this as leverage primarily against China. On the other, we’re still left in a holding pattern. Investors hate uncertainty, and what we have now is just another 90 days of not knowing what comes next. That paralyzes decision-making, whether it’s deploying capital into early-stage companies or greenlighting cross border manufacturing investments. 

For MedTech in particular, the implications are amplified. Typically, pricing for healthcare products is fixed under negotiated payor-based contracts leaving little room for companies to recapture the additional costs imposed by tariffs. While this might be addressable by a geographic shift in a manufacturing line, for a cleared device or biologic, you may need new approvals or revalidation, which adds risk and delay. So, while the market reacted positively in the short term, there’s no real clarity yet for long-term planning. 

Guillaume Viallaneix: Given the current trade dynamics, are you noticing any shifts in how MedTech companies are approaching international partnerships or M&A? 

Tim Sheehan: Absolutely. The larger corporates—the Medtronic’s and Stryker’s of the world—they’re still thinking long-term. They can weather short and intermediate-term market disruptions. But for early-stage, growth-stage and mid-tier companies, time really matters. If you’re in the middle of a cross-border transaction or considering expansion, this kind of uncertainty makes it incredibly difficult to move forward with confidence. 

Still, some strategics are quietly becoming more active again. We’re already seeing a modest resurgence in early-stage corporate investing, and in some cases, potential acquisitions of distressed but high-potential assets. It’s selective, but it’s happening. Companies need to focus on surviving this stretch while scanning the market for those long-term synergy plays. 

Guillaume Viallaneix: Are you saying that in just a few months, some investors are already viewing this as an opportune time to invest in undervalued MedTech assets? 

Tim Sheehan: Investors are cautious, Guillaume, especially those who have been burned by recent market moves. But there’s also a segment that sees this dislocation as an opportunity. We’ve been having more contrarian conversations: “What can I buy now that others are missing?” The public markets are jittery, but that creates openings on the private side. 

The key is trust. If a company has good fundamentals, loyal investors, and can hit milestones, it stands a much better chance of attracting capital even now. And for the bold, this might be a great time to do strategic tuck-ins or even full acquisitions. 

Guillaume Viallaneix: How is BlackPoint Capital Markets adapting its strategies to navigate these trade tensions? Are there specific regions or sectors you’re now focusing on more closely? 

Tim Sheehan: Look, we are big believers in free trade and the fundamental principles that have made the United States the safest country for Foreign Direct Investment for the better part of the last eighty years. These principles include the Rule of Law, Constitutionally Protected Property Rights, and Policy Stability. That puts North America, Europe, and Asia Pacific (Japan, South Korea, Taiwan, and Australia) at the forefront of the free world. If we as a nation honor these principles and a free trade environment, we believe the free world will continue to advance and we can operate within this sphere with confidence. 

Interestingly, China and Russia came close to joining the free trade world at the end of the last century but diverged when control of their governments was taken over by autocratic leaders. We are watching China closely. There’s a sense that they’re on the defensive with mounting debt issues, failed internal investment programs, and growing internal pressure. That said, it’s still a massive market, and they have a vast array of resources to lever if this turns into a protracted trade war. Our primary concern is that historically prolonged trade wars turn into hot wars. 

At BlackPoint Capital Markets, we’re guiding clients toward sectors where geopolitical uncertainty is less of a headwind. And yes, we’re encouraging portfolio companies to explore selective M&A opportunities while valuations are low. 

Guillaume Viallaneix: Despite the challenges posed by the tariffs, do you see any emerging opportunities for MedTech innovators? 

Tim Sheehan: Definitely. Look, this is capitalism. Yes, we’ve lost a lot of companies over the past 18 months. But in many cases, these were companies with strong technologies or great teams that just had insufficient capital to withstand the funding drought. That means there’s IP, talent, and early traction out there at discounted valuations. If you have capital, now is the time to think about consolidation. Pick up those assets, bring key people in, and accelerate your ramp up. 

Also, companies struggling with insufficient capital right now may find better outcomes by aligning with a stronger partner. The opportunities are out there; you just need to think more strategically about it. 

Guillaume Viallaneix: So, let’s say you’re advising the CEO of a small-to-mid-midsize MedTech company, someone who’s raised a Series A or B and is wondering what to do next. What’s your advice? 

Tim Sheehan: If you truly have the capacity, don’t be passive. Don’t hide. If you’re in a strong position, maybe it’s time to acquire. Look around, your competitors might be vulnerable. But be smart about how you structure deals. Use payout structures that limit upfront cash and reward success. 

And if you’re on the edge, discuss with your board and investors whether this is the time to sell. To recapitalize? Every situation is different, but the one thing you can’t afford is inertia. This environment will reward those who move decisively. 

Guillaume Viallaneix: Tim, as always, your insights are clear and to the point. It gives our community real tools to think strategically, even in the face of uncertainty. Thank you again. 

Tim Sheehan: Thanks, Guillaume. Always a pleasure. 

Stay tuned for the next edition of Tariff Talks as we continue unpacking the fast-moving dynamics shaping MedTech. 

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