Although several big medtech firms fared well last year, few would argue against the opinion that 2013 was not a great year to be in the business of medical technology. But how bad was it, really?
EP Vantage recently published a report, “Medtech 2013 in Review,” that says things were pretty bad, especially for early-stage firms. “With less money coming in,” the report explains, “large firms are avoiding risky acquisitions of early-stage companies. Venture capitalists are following suit, with most awarding investments cautiously to companies with approved products.”
Mergers and acquisitions, the report says, were down only 16% in number from 2012, but the total value of those acquisitions totaled $19.3 billion, which was less than half the amount spent in 2012. While EP Vantage reports that device makers raised just over $3.6 billion in venture capital investments in 2013, the MoneyTree Report that Thomson Reuters compiles for PriceWaterhouseCoopers (PwC) and the National Venture Capital Association only counts $2.1 billion in VC financing rounds in 2013 their Medical Devices and Equipment category.
For the full story, see the EE Times sister site Qmed.
-- Steve Levy is a contributor to Qmed.