AdvaMed Report: The state of the U.S. med-tech industry – 2010 versus 2009

 

 

The state of U.S. med-tech: An industry snapshot (MassDevice)

The medical device sector was on the rebound in 2010 after a less-than-stellar 2009 performance, according to the latest report from industry lobby AdvaMed.

Revenues for publicly traded companies grew to $205 billion in 2010, a 4 percent increase from the $197 billion reported in 2009, which was a 0.1 percent slide from the prior year.

Net income spiked a whopping 57 percent to $12.4 billion, compared to 2009’s $7.9 billion, largely thanks to relief from merger and impairment charges incurred in 2009, according to the report.

The total number of firms came in at around 7,000; 62 percent of them have fewer than 20 employees. Only 2 percent employ more than 500 people.

The average salary for a U.S. med-tech worker was a reported at $58,000, adding up to about $24.6 billion in payroll.

As an industry, medical device firms spent $9.8 billion on research and development, an 8 percent increase from 2009’s $9.1 billion.

The nation’s hubs reported their own gains, as well as some losses in 2010. Here are the figures for the top five med-tech hubs in the U.S.:

Massachusetts:

  • Home to 38 companies (-3 percent since 2009)
  • $84 billion in market capitalization (+6 percent)
  • $40 billion in revenue (+2 percent)
  • $2.5 billion in R&D spending (+2 percent)
  • $1.2 billion in net income (-201 percent)

Minnesota

  • Home to 19 companies (-10 percent since 2009)
  • $59.5 billion in market capitalization (-10 percent)
  • $22 billion in revenue (+8 percent)
  • $2.3 billion in R&D spending (+10 percent)
  • $4 billion in net income (+33 percent)

Southern California

  • Home to 37 companies (+3 percent since 2009)
  • $53 billion in market capitalization (+33 percent)
  • $17 billion in revenue (+12 percent)
  • $1.6 billion in R&D spending (+12 percent)
  • $1.2 billion in net income (-7 percent)

Northern California

  • Home to 33 companies (+6 percent since 2009)
  • $32 billion in market capitalization (+12 percent)
  • $8.5 billion in revenue (+13 percent)
  • $1 billion in R&D spending (+10 percent)
  • $0.8 billion in net income (+78 percent)

New Jersey

  • Home to 16 companies (same as 2009)
  • $29.6 billion in market capitalization (+6 percent)
  • $11 billion in revenue (+4 percent)
  • $0.7 billion in R&D spending (+6 percent)
  • $2 billion in net income (+9 percent)
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