Megamergers Dominate MedTech Industry in 2014 with Nearly $40 Billion in Deals

LONDON, BOSTON & TOKYO

The one word to sum up the medtech sector in 2014 – megamergers. The total value of mergers reached nearly $40 billion, more than twice as much as 2013. Even more astonishing is the fact that this figure does not include the Medtronic-Covidien megamerger, which closed in early 2015.

The number of companies going public also increased in 2014 with as many as 34 device makers conducting IPOs on Western exchanges. Not only did offerings surge, the total value raised was nearly triple the haul of 2013. A total of $2.2 billion was raised through IPOs according to the MedTech 2014 in Review report published by EP Vantage, the editorial arm of market intelligence firm Evaluate Ltd.

MedTech 2014 in Review Highlights

• FDA approved devices rose to 33 in 2014, a 43 percent increase from 2013
• Seven of the top 10 M&A deals were worth more than $1bn, showing huge appetite for consolidation at the top
• 34 device makers raised $2.2 billion in IPOs, more than triple the 2013 total
• European markets were comparatively weak for both stock prices and IPOs
• The total amount of venture funding in 2014 saw little change at $3.9 billion but the number of rounds dropped 15 percent from 406 in 2013 to 345 in 2014

“Following the sombre days of 2013, last year saw the industry enjoy a resurgence in the merger and IPO markets, a near-doubling in FDA approvals of innovative devices and soaring company valuations on the public markets,” said Elizabeth Cairns, report author and EP Vantage MedTech reporter. “However, the trend towards company consolidation was not universally good news as it was partly driven by increased pricing pressures. The string of megamergers also shifted the focus away from smaller acquisitions, denying investors a key source of short-term returns.”

The full version of the MedTech 2014 in Review report, based on market intelligence from EvaluateMedTech™, can be downloaded at www.evaluategroup.com/Medtech2014inReview.

About Evaluate Ltd.

Evaluate is the trusted source for life science market intelligence and analysis with exclusive consensus forecasts to 2020. Our services include EvaluatePharma, EvaluateClinical Trials and EvaluateMedTech. Our award-winning editorial team, EP Vantage, leverages our strategic analysis to cut through the noise, giving you daily opinion and insights. The Evaluate services enable the life science community to make sound business decisions about value and opportunity. For more information please visit www.evaluategroup.com. On Twitter: @evaluatepharma, @evaluatemedtech, @evaluateJP @epclinicaltrial, @epvantage.