Acquisitions spur medical device industry growth
Medical device companies saw growth in 2010 despite a slow economy and pressure on pricing, and that growth should continue for the next few years, according to Kalorama Information.
The Rockville, Md.-based market research firm indicated that medical device companies grew at an average of six percent in 2010, on the higher side of most growth estimates a year ago. The report noted that the $305 billion medical device market should see growth in that range over the next few years as a result of emerging markets, an aging population and increased acquisitions.
The medical device market is not without its challenges, including regulatory procedures, group purchasing negotiations and a new tax as part of U.S. healthcare reform. However, Kalorama pointed to a robust amount of merger and acquisition activity in the market as an indication that the medical device industry is optimistic about the future.
Among the acquisitions that occurred last year was Covidien’s $2.6 billion acquisition of endovascular company ev3. Stryker purchased the neurovascular unit of Boston Scientific, and Baxter Healthcare assumed bone graft maker Apatech. Medtronic acquired several companies, including spinal neuromodulation products company Axon Systems, heart valve maker ATS Medical and Invatec, a producer of stents.
The Rockville, Md.-based market research firm indicated that medical device companies grew at an average of six percent in 2010, on the higher side of most growth estimates a year ago. The report noted that the $305 billion medical device market should see growth in that range over the next few years as a result of emerging markets, an aging population and increased acquisitions.
The medical device market is not without its challenges, including regulatory procedures, group purchasing negotiations and a new tax as part of U.S. healthcare reform. However, Kalorama pointed to a robust amount of merger and acquisition activity in the market as an indication that the medical device industry is optimistic about the future.
Among the acquisitions that occurred last year was Covidien’s $2.6 billion acquisition of endovascular company ev3. Stryker purchased the neurovascular unit of Boston Scientific, and Baxter Healthcare assumed bone graft maker Apatech. Medtronic acquired several companies, including spinal neuromodulation products company Axon Systems, heart valve maker ATS Medical and Invatec, a producer of stents.