Medtech M&A report: Quality beats quantity in 2012, with more activity ahead

March 27, 2013 by Arezu Sarvestani

There were fewer mergers and acquisitions in 2012 than in 2011 but the deals were more valuable, and analysts foresee more activity ahead in 2013.

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The medical device sector posted some strong merger & acquisition figures in 2012, and the year ahead is looking bright as well, according to a report from analysts at PricewaterhouseCoopers.

Although deal quantity dropped slightly year-over-year, the value of the medtech M&A market gained significantly, driven primarily by the $21.3 billion Johnson & Johnson (NYSE:JNJ) buyout of Synthes, which closed in July 2012.

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The total number of deals dropped from 52 in 2011 to 50 in 2012, but deal value increased from $24.6 billion to $36.4 billion, according to the report. With healthcare reforms causing industry-wide shifts in strategy, analysts expect M&A activity to increase further in 2013.

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