VC funding flows into device projects

With the pharmaceutical industry facing generic competition and biotechs running into the federal ban on stem cell research and other impediments, healthcare venture capital investment continues to flow into the medical device sector. Business 2.0 reports that 70 companies received $690 million in VC funding in the first quarter of this year, an increase of more than 60 percent over a year ago. The magazine talks with Mark Brooks of BA Venture Partners who notes that the relative shortage of investors focused on the sector makes gains for those who do choose to enter the field potentially greater. Another attraction: Regulation remains less of an issue for devices than for either pharma or biotech. Brooks argues that wireless startups that focus on healthcare are likely to remain popular with Silicon Valley-focused VC for some time.

- see this article from CNN Money

PLUS: "For years device makers took a quiet support role," writes the Boston Globe. No longer. Now Boston Scientific sits on top of the local power pyramid with two products that gross a billion dollars a year. Waltham's Thermo Electron Corp stands to triple in size if its $10.8 billion bid last week for Fisher Scientific goes through. Article

ALSO: On Monday, Boston Scientific announced a recall of about 1,000 potentially faulty defibrillators. The devices were made by Guidant, which Boston Scientific formally acquired in April. Article