5 financial challenges facing the medtech sector (MedTechDive)
As medical device leaders gather this week at AdvaMed’s annual Medtech Conference, several questions loom over the industry. After years of pandemic-driven uncertainty, supply chain snags and financial pressures, what does growth look like for the sector? And how will technologies including artificial intelligence and a new class of GLP-1 drugs affect medical device companies in the long term?
The challenges that emerged last year have intensified, according to a report released Monday by professional services firm Ernst & Young. Investment and mergers have declined, as have companies’ stocks and IPOs.
Here are five takeaways from the EY report:
1/ M&A is ‘practically nonexistent,’ but could accelerate
Mergers and acquisitions have been “really nonexistent” so far in 2023, EY Life Sciences Partner John Babitt said on a call with reporters. The total value of deals decreased 44% to $44.6 billion for the 12-month period ending June 30, 2023, according to EY’s report.
There have been just a handful of large deals this year, with the largest being Johnson & Johnson’s $16.6 billion purchase o...
