Venture capital funding, PMA approvals and granted patents grew for Massachusetts-based medical device companies last year, according to a new report from firm Grant Thornton.
The report, presented by managing principal George Serafin at MassMedic’s annual meeting, found that the Bay State’s medical device sector is second only to California for VC funding – reeling in $3.7 billion between 2014 and 2017. Massachusetts is also ranked just behind California for the most approved medical device patents, garnering 7% of total approvals in the U.S.
The number of 510(k) applications approved in the Commonwealth is trending downward, Serafin reported, while PMA approvals are up in 2017 compared to prior years. The majority of those approvals are in the cardiovascular segment, followed by the in vitro diagnostics space, according to the report.
A survey of MassMedic members revealed that most consider expanding R&D as a primary driver for growth, followed closely by controlling expenses. While most members reported an increase in pricing pressure as a top variable influencing the industry, few felt prepared to handle it, according to the survey. An evolving regulatory environment was also cited as a key change-driver, but most felt primed to accommodate anticipated changes.
The report also showed that while national employment for the medical device industry fell -3.8% from 2011 to 2015, employment in Massachusetts’ sector grew by 1%.
“With 420 medical device companies, prominent research hospitals, and access to top talent, Massachusetts continues to be a hub for innovation and a leader within the medtech sector,” Serafin said in prepared remarks. “Massachusetts ranked second only to California for most 510k approvals over the five-year period from 2013-2017 and PMA approvals in 2017.”
“The big picture painted from this comprehensive study is that the medical device sector in the Commonwealth is strong, vital and growing more than the vast majority of all the other states in the nation,” Tom Sommer, president of MassMedic, added. “The study numbers point to big leads in venture funding and patents, two areas of particular strength. While we still are concerned about the expiring delay of the national medtech tax and what that might mean for the future, we are in good shape right now.”