Amassing strong patent portfolios helps medical device companies attract interest from strategic investors and potential acquirers.
Strategic investments on the rise
The last decade has seen a dramatic rise in large life science companies creating venture funds to invest in promising early stage medical technologies that align with the larger giants. In the last few years, large medtech companies have been competing in the race to acquire private medical device companies with a particular focus on neurosurgery, orthopedics and cardiology.
Industry analysts note that large medtech players – including Johnson & Johnson, Medtronic, Boston Scientific and HMO Kaiser Permanente – made major investments in medical device startups in 2017. As of August 2017, there were more than 50 corporate deals channeling more than $833 million of investment to private medical device companies. This trend is continuing in 2018.