The global medical device industry growth rate has been steadily increasing since 2013, and year over year growth to 2022 is forecasted at 5.1% with sales of $522 Billion – only slightly off the pace of the pharmaceutical industry according to the EvaluateMedTech World Preview 2017, Outlook to 2022, the annual report from pharma and medtech commercial intelligence firm, Evaluate.
Whether it’s a cause or reflection of the growth forecast, the total value of medtech M&A deals has risen by a massive 178% in H1 2017. The surge was driven by an increase in deal value, as the actual number of deals struck has actually decreased from high in 2015. Notable deals with a significant impact on future forecasts include:
- Abbott’s acquisition of St. Jude, which positions it to become the third largest medtech company by 2022 with sales of $19.5 billion, a significant jump from its $9.9 billion in sales and eighth place ranking in 2016.
- Becton Dickinson’s pending acquisition of C.R. Bard. If completed, the combined company could achieve sales of over $18bn in 2022, and increase Becton Dickinson’s 2022 ranking from eighth to fourth.
Venture financing deals for medtech tell a similar (if less pronounced) story, with a 56% increase in value in H1 2017, despite an 11% decrease in the number of deals.
Interestingly, while M&A and venture financing grow, the opposite is true for funding generated from IPOs, which appear to be getting smaller in value. The total value of medtech IPOs was down 27% in H1 2017 when compared to the same period in 2016, despite a slight increase in the number of closed deals.
Key highlights of the EvaluateMedTech World Preview 2016, Outlook to 2022 report include:
- Total value of medtech M&A deals rises by a massive 178% in H1 2017
- In vitro diagnostics is expected to remain the largest medtech segment in 2022 with annual sales of $70bn; Roche remains top player with expected sales of $12.8bn in 2022
- Total value of medtech venture financing deals rises 56% in H1 2017 despite the number of deals falling by 11%
- Total value of medtech IPOs continues to fall in H1 2017 to $122m
- Global medtech R&D spend set to grow by 3.7% (CAGR) to $33.5bn by 2022
- Following the 10 year high in 2015, number of first-time PMAs and HDEs down 22% in 2016
The analysis is based on in-depth consensus forecast models for the top 300 global medtech companies available within the EvaluateMedTech service.
To read more about the expected performance of the global medtech industry, download the full EvaluateMedtech® World Preview report at: http://info.evaluategroup.com/WPMT2017-MA.html.