Experts explore the state of M & A in medtech

At DeviceTalks West 2018, a panel of experts gathered to discuss the state of M&A in medtech and the forces driving startups to seek an exit. Buyouts like Medtronic‘s (NYSE:MDT) $1.7 billion acquisition of Mazor Robotics (NSDQ:MZOR) dominated the headlines in 2018, but industry veteran Shayan Bhattacharyya found himself intrigued by the smaller deals that didn’t make the press. “The things that keep me interested are the deals that are the tuck-in, bolt-on acquisitions,” he said at DeviceTalks West 2018 in Costa Mesa, Calif., last month. “The classic medtech model has been to go into a new therapeutic area,” he added. “But now we’re seeing complementary plays. Now that you have the product, how can you help a hospital or a practice manage patient flow better? I’ve seen a number of those smaller plays and that’s not to be ignored.” Fellow panelists Josh Copp, a partner at McKinsey & Co., noted that while 2018 was a slower year for M&A in terms of value, it was on par with past years in volume. Much of that was driven by explosive growth in the digital health sector. “The reason to highlight digital is if you look at the volume of deals in 2008 to 2012 versus 2013 to 2017, the fastest-growing subcategories are the digital or software-oriented ones, and also care services,” Copp said. Alongside the growing digital health market, companies are also experiencing increased quality and regulat...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Featured Mergers & Acquisitions Wall Street Beat Boston Scientific DeviceTalks West mazorrobotics Medtronic Source Type: news