While the Pharma sector struggled during the first half of 2014, the MedTech sector came out on top, according to new reports from the Evaluate Group.
“The most important turnaround for the MedTech sector comes in the form of mega-mergers and acquisitions,” Elizabeth Cairns, author of the MedTech report, said in an interview with Herald Online. “Whether this is the beginning of a recovery or the only way companies can seek growth in an industry that is still facing a lot of pricing pushback from payers and patients is not yet clear.”
The MedTech sector report painted a bright future, reporting a combined value of acquisitions reaching $27 billion during the first half of this year, surpassing the full-year total for 2013 with an increase of more than 40 percent. Yes, you read that right – a 40 percent increase in acquisitions so far this year.
Venture capital MedTech deals rose 33 percent over the first quarter, according to the report, exceeding the billion dollar mark for the first time since the second quarter of 2013. The FDA also awarded 17 first time PMAs, almost double the nine awarded in 2013. Even better? Devices are now assessed almost twice as fast as last year.
According to another report released by Evaluate this month, the Pharma/ BioTech industry struggled during the first half of the year, with IPOs peaking in the first quarter at $2.1 billion but falling back to $913 million by the end of the first half. On a brighter note, the first seven months of 2014 saw the FDA approve 27 novel agents, Evaluate researcher Jonathan Gardner reported, which could generate $7 billion in U.S. sales over the next five years. The Pharma sector has a rough road ahead, though, considering controversies over drug pricing and the sustainability of a biotech bull market.
The moral of the story? It’s a great time to be in MedTech, and we’re excited about the new opportunities being presented to entrepreneurs and medical professionals every day – in Boston and beyond.
Jenni Whalen is the Executive Assistant of Editorial at Upworthy. She was previously MedTech Boston's Managing Editor and has an MS in Journalism from Boston University, as well as a BA in Psychology from Bucknell University. Whalen has written for Greatist, Boston magazine, AZ Central Healthy Living and the New England Journal of Medicine, among other places. She has also worked as a conference planner, ghost writer, researcher and content developer.
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