Medical device industry venture capital investment dropped 20% in dollars in Q1, with 10% fewer deals reported compared with Q4 2012, according to a new funding report.
Many medical device companies have their eye on China – and with good reason – but the country’s approach to healthcare is shifting, and companies that hope to capitalize on the China’s exponential growth must be prepared to change with it, according to analysts at PricewaterhouseCoopers.
The medical device sector posted some strong merger & acquisition figures in 2012, and the year ahead is looking bright as well, according to a report from analysts at PricewaterhouseCoopers.
Medical device venture capital funding took a harsh turn for the 3rd quarter of 2012, with a 37% drop in dollars spent since the previous quarter, according to a PricewaterhouseCoopers report.
The medtech sector fell from its 2nd place seat for sectors collecting the most VC dollars to 6th, with funding lower than it’s been since 2004.
The industry collected $434 million over 65 deals in Q3 2012, a 42% year-over-year decline in spending and a 27% drop in the number of deals.
Shine Medical closed an $11.4 million funding round for its method of generating a low-energy neutron source for medical imaging that uses a particle accelerator instead of a nuclear reactor.
The FDA’s new authority to change the risk classification on a medical device could present a challenge for med-tech companies, according to a new report from PricewaterhouseCoopers that examines how the recently signed user fee deal will affect the life sciences industry.
Venture capitalists shied away from riskier med-tech bets during the 1st quarter of 2012, sticking more often to companies they had invested in previously or device makers nearing an exit.
Medical device VC funding increased to $687 million, a 6% jump from the same period last year and a 33% spike over the previous quarter, even as investment in life sciences overall decreased 22%.
Venture capital funding of life science startups, including biotech and medical device enterprises, rose by 21% last year, according to PricewaterhouseCoopers.
VCs dropped $7.5 billion on 785 life sciences deals during the year, according to a PwC report, "Zigzagging Upward," compiled using data from the PricewaterhouseCoopers LLP/National Venture Capital Assn. MoneyTree Report and Thomson Reuters.
Biomedical CEOs in California continue to see a burdensome FDA regulatory environment as a major hinderance to the industries growth, according to preliminary results of a CEO survey conducted by the California Healthcare Institute, BayBio and PwC.
In a preview of a broader survey to be released in February, 8 in 10 CEOs said that the current FDA regulatory approval process "has slowed the growth of their organization" and is among one of the biggest threats to the growth of the med-tech sector in the U.S.