For first time in 13 years, devices draw more dollars than drugs
The third quarter of 2011 saw medical device companies outdo their biopharmaceutical counterparts in the competition for venture capital. Investors poured $857 million into the former and $715 million into the latter, occasioning the first time devices bettered biodrugs since 1998.
“Although the biopharmaceuticals sector lost its long-held place as the leader of the healthcare industry, early-stage investment was strong, showing that investors are building a pipeline,” said Jessica Canning of Dow Jones VentureSource, which reported the figures in a statement. “In medical devices, investments were weighted toward the later-stage deals, which could be a result of concerns over the clarity of the FDA’s requirements weighing more heavily on device investors.”
Fresh financing went to 68 medical device makers and 78 biopharm firms.
In healthcare IT, 24 deals brought in $207 million. Overall, the healthcare industry raised $1.9 billion for 184 deals.
“Although the biopharmaceuticals sector lost its long-held place as the leader of the healthcare industry, early-stage investment was strong, showing that investors are building a pipeline,” said Jessica Canning of Dow Jones VentureSource, which reported the figures in a statement. “In medical devices, investments were weighted toward the later-stage deals, which could be a result of concerns over the clarity of the FDA’s requirements weighing more heavily on device investors.”
Fresh financing went to 68 medical device makers and 78 biopharm firms.
In healthcare IT, 24 deals brought in $207 million. Overall, the healthcare industry raised $1.9 billion for 184 deals.
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.