• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » Medical device sector to consolidate?

Medical device sector to consolidate?

June 14, 2011 By MassDevice staff

Historical Trend in US M&A Activities 2005-May 2011

Impending federal excise taxes, downward pricing pressure and declining volumes of big-ticket procedures constitute a triple threat that will drive the medical device industry to consolidate, according to a PricewaterhouseCoopers report.

The total value of health care deals over the past 12 months rose 40 percent, according to the consulting giant’s “U.S. Mid-Year M&A Outlook.” That trend is likely to continue, the report predicts.

“PwC expects healthcare M&A and joint venture activity will continue to accelerate, driven by the need to reduce costs, increase productivity and develop more integrated business models,” according to a press release.

For the medical device industry, according to the report, that means more M&A and joint venture activity as companies look to expand their footprints and create savings.

“The medical device industry will consolidate to achieve cost savings and diversify product portfolios, driven by the need to combat the impact of federal excise taxes, downward pressure on pricing and reimbursement and declining procedure volumes in certain high-cost treatment areas,” the authors wrote.

News of 1,276 deals broke during the first five months of 2011, worth $454 billion. That’s a 39 percent increase in value over the same period in 2010, although deal volume was off 4 percent (there were 1,336 deals worth $327 billion during the same period last year, according to the report). Average deal size rose 45 percent to $356 million, from $245 million.

One factor that’s driving the increased dealflow is a sell-side drive from firms looking to streamline portfolios and “exit those businesses in which they don’t have number 1 or 2 market positions,” according to the report.

“In the last twelve months ending May 2011, carveouts comprised 29 percent of deal activity,” the authors wrote.

Filed Under: Mergers & Acquisitions Tagged With: PricewaterhouseCoopers (PwC)

More recent news

  • BD files patent infringement lawsuit against Baxter over infusion pump tech
  • Tandem Diabetes Care subsidiary earns new FDA clearance for insulin infusion set
  • Apreo Health emerges from stealth with positive data for lung scaffold
  • Tivic adds new vagus nerve stim patent
  • Study backs Teleflex stapler for reducing post-op GERD rates

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy