LONDON & BOSTON -- (BUSINESS WIRE) -- Despite most large-cap medtech companies seeing reliable share price growth, 2013 has been a disappointing year so far for the medical technology industry, according to the newly released “MedTech Half Year Review 2013” report from Evaluate’s editorial arm, EP Vantage. Not only did the sector experience a steep decline in FDA-approved medical technologies, the low number of completed mergers and acquisitions puts 2013 on track to be the most disappointing year for M&A activity in a decade. The report, based on data from EvaluateMedtech, can be viewed at http://www.evaluategroup.com/MedTechHalfYearReview.
The dip in venture financing first seen in 2012 has also continued, with higher regulatory standards for medtech perhaps driving investors towards the greater rewards offered by pharma.
Indeed, when compared to the pharmaceutical and biotech sectors, whose venture investment increased 189 percent between the first and second quarters of 2013, the medtech sector’s 1.2 percent increase proves the industry still has a lot of catching up to do.
“When the US medical device sales tax went into effect in January, it was expected that the medtech sector would face difficulties in the first half of 2013,” said Elizabeth Cairns, report author and EP Vantage medtech reporter. “While the most dire predictions about the effect of the tax have not come true, it’s still been a disappointing start to the year. There is, however, hope that the second half of the year will bring improvements, particularly in research and development where the flow of new innovations will resume.”
Among the key findings of the MedTech Half Year Review 2013 report:
To read the complete EP Vantage MedTech Half Year Review 2013 report, download your free copy at http://www.evaluategroup.com/MedTechHalfYearReview.
About Evaluate Ltd.
Evaluate is the trusted source for high quality commercial market intelligence and exclusive consensus sales forecasts to 2018. Our services are EvaluatePharma, EvaluateMedTech and EvaluateClinicalTrials. Our award-winning editorial arm, EP Vantage, leverages our market intelligence and analysis to provide daily opinion and insights. Evaluate’s services give you the insights you need to ask the right questions and get the right answers. That’s intelligence you can act on. For more information visit: www.evaluategroup.com. On Twitter: @evaluatepharma, @evaluatemedtech, @epclinicaltrial, @epvantage.