How strong patent portfolios attract strategic investments and deals

Amassing strong patent portfolios helps medical device companies attract interest from strategic investors and potential acquirers.

David J. Dykeman, Greenberg Traurig and Patrick West, Mirus Capital Advisors

The medical device industry has demonstrated strong and sustainable growth in recent years. Given the aging population, increasing incidence of chronic and lifestyle diseases, emergence of artificial intelligence (AI) and big data, and significant investments in R&D and M&A, the medtech sector appears to be in prime health. According to KPMG, the medical device industry’s global annual sales are forecast to rise more than 5% a year to reach nearly $800 billion by 2030. As the industry evolves, medtech companies are making strategic moves to stay ahead in their respective markets.

[See Dykeman discuss medtech industry investment during a panel at DeviceTalks Boston, Oct. 8–10.]

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.

Get the full story on our sister site Medical Design & Outsourcing.