Total deal volume in the medical device industry contracted by about 13% in 2013, according to new analysis from audit shop PricewaterhouseCoopers.
Medtech companies executed 41 deals worth a total of $14.3 billion last year, down from 47 deals worth $31.8 billion in 2012. But the previous year’s numbers were inflated by the $21.3 billion marriage between Synthes and Johnson & Johnson (NYSE:JNJ), which closed in the 2nd quarter of 2012.
Excluding the JNJ/Synthes merger, deal value in the medical device sector increased 22.3% in 2013, the PwC analysts said.
During the 4th quarter of 2013, medtech companies executed 15 deals valued at $4.76 billion, compared to 16 deals valued at $2.81 billion in the final frame of 2012.
Included in the analysis was the $1.7 billion Mako Surgical (NSDQ:MAKO) buyout by Stryker (NYSE:SYK), which closed in December 2013, and CareFusion‘s (NYSE:CFN) deal with GE Healthcare (NYSE:GE) to acquire Vital Signs for $500 million. Excluding those deals, total dollars spent on M&A declined by 11% in the 4th quarter.
"Medical device manufacturers remained active in M&A, primarily in middle-market deals as they sought to complement existing product portfolios with innovative technologies," the analysts wrote.
The analysts also noted that there were no "mega deals" across the entire life sciences spectrum during 2013, as companies looked to bolt-on acquisitions and divestitures in order to boost shareholder value.
