The merger & acquisition frenzy that consumed the medical device industry during the 2nd quarter stayed strong during the ensuing period, although the value of the Q3 deals slipped a bit, according to PricewaterhouseCoopers.
Medtech posted more deals during Q3, going from 11 to 13 deals on a sequential-quarter basis, according to PwC’s Pharmaceutical & Life Sciences Deals Insights Quarterly.
But the value of the deals declined from $5.6 billion to $3.6 billion during the 3rd quarter, compared with Q2, and slid 38.1% from Q3 2013, according to the report.
The consolidation trend in pharma and life sciences was especially evident in medical devices, PwC found.
“While companies are continuing to consolidate across all sectors within the PLS industry, this trend is particularly evident in the medical device sector. With recent consolidation among the payor and provider groups, medical device companies have sought to maintain their bargaining power by expanding the breadth and depth of their product offerings and capitalizing on opportunities to demonstrate value to their customer bases through new business models," according to the report. "This trend may create increased competition in deals going forward as participants vie for increasingly scarce assets. On the other hand, consolidators are likely to undergo a wave of divestitures as they evaluate newly combined businesses and seek to maximize the value of their assets, creating additional opportunities for potential acquirers."