- Start-up medical device firms account for 53% of the 769 deals in 2010
- Majority of PE/VC funding between 2007-2010 was for less than $10m
- US is biggest market for PE/VC investment
LONDON--(BUSINESS WIRE)-- 2010 saw 769 venture capital (VC) and private equity (PE) deals in the medical devices sector, in comparison with 556 in 2009, according to a new report available on companiesandmarkets.com.
PE/VC Activity in Medical Devices - Number of PE/VC Investments in Small Sized Medical Devices Companies has Increased in the Past Four Years
The fragmented medical devices market is driven by innovation and R&D, and represents distinct growth opportunities. Medical device companies seek investment to gain management and financial support to speed up development, while PE/VC companies enhance their portfolios and take advantage of future growth potential.
Investments are prevalent in the US where many small development stage firms are located, although during the 2007-2010 period there was also strong interest in companies in Europe, Canada and Asia-Pacific. Specialist start-up firms often have limited management expertise and low turnover (sub-$5million), therefore investors focus on bringing them to a point where they can realise exit strategies and make them available for acquisition.
In 2010, investment in in-vitro diagnostic (IVD) devices represented 20% of all deals, followed by cardiovascular devices (13%), and healthcare IT (10%). Of the IVDs, clinical chemistry and immunochemistry are proving popular, while interventional cardiology is of particular interest in terms of cardiovascular devices. Diagnostic imaging, orthopedic devices, disease detection, surgical equipment and minimally invasive technologies are also proving popular with investors.
In 2010 more than half of investments made were with start-up medical device firms, at 53% of the total. Expansion stage investments followed (21%), then later stage investment (16%).
The report provides analysis of eighteen device segments: Anesthesia and Respiratory; Cardiovascular; Diabetes Care; Diagnostic Imaging; Drug Delivery; Ear, Nose and Throat (ENT); Endoscopy; Healthcare IT; Hospital Supplies; IVD; Nephrology and Urology; Ophthalmic; Orthopedic; Patient Monitoring; Surgical Equipment and Wound Care Management.
The 90 page July 2011 report includes information concerning 2007-2010 PE/VC deals, broken down by stage of investment, value and geography; via tables, graphs and additional commentary.
Companies & Markets
London (UK): +44 (0) 203 086 8600
KEYWORDS: United Kingdom Europe
INDUSTRY KEYWORDS: Health Medical Devices Other Health Communications Other Communications