Global Medtech Top 100 Released: Two Chinese Firms Make the List!

Sep 05, 2024 16:45 CST Updated 16:45

Medtronic

Medical Device Manufacturer

Johnson & Johnson

Medical Device R&D and Manufacturer

Mindray

Medical Device R&D Manufacturer

Shockwave Medical

Cardiovascular Disease Treatment Device Developer

ZimVie

Developer of Dental and Spinal Treatment Products

Medical Design & Outsourcing, a medical device industry website, released the 2024 Global Top 100 Medical Device Companies. Medtronic, Johnson & Johnson, and Siemens Healthineers continue to rank as the top three by revenue. The highest-ranked Chinese company is Mindray, placing 27th. MicroPort also made the list, ranking 73rd.

Total Sales of the World's Top 100 Medical Device Companies Reach $474.8 Billion in 2024, a New High with Nearly 5% Growth

Currently, as the largest medical device companies in the world continue to grow in scale, the annual revenue required to rank among the top 100 companies also keeps rising. This year, the annual revenue of the top 100 companies reached $3.54 billion, which is $40 million higher than last year and nearly $1.18 billion higher than the year before.

M&A Drives Revenue Growth

In 2024, mergers, acquisitions, and spin-offs are the main trends on the Global Top 100 Medical Device Companies list. Many companies that ranked lower in previous years have reached agreements to be acquired by the top 20 global medical device companies. Three-quarters of the companies reported sales growth, with 33 companies achieving double-digit growth. The leading companies in growth have increased sales through mergers and acquisitions or reached acquisition agreements.

Wave after wave of mergers and acquisitions have led to the continuous expansion of the world's largest medical device companies, with the sales revenue, R&D expenditure, and number of employees of the top 100 global medical device enterprises all increasing year by year.

For example, the merger of Globus Medical and NuVasive elevated Globus's ranking by 12 positions, with the company reporting a 53% increase in revenue following the merger with NuVasive.

Shockwave Medical and Axonics achieved significant growth with increases of 49% and 34%, respectively, making them highly attractive potential acquisition targets. In May 2024, Johnson & Johnson MedTech successfully acquired Shockwave Medical for $13.1 billion, a move that not only demonstrated market recognition of Shockwave Medical's value but also opened up new competitive space for future mergers and acquisitions in the medical technology sector. Meanwhile, Boston Scientific is actively advancing its acquisition plan for Axonics, with an expected transaction value of $3.7 billion, further highlighting Axonics' growth potential and market position in the medical technology field.

On the other hand, ZimVie became a pure dental company by selling its spine business, which halved its ongoing operating income. The spun-off company, Highridge Medical, made its debut as an independent entity in the Medtech Big 100.

Following ZimVie, the company experiencing the second-largest revenue decline is Avanos Medical, a drop attributed to its strategic business divestiture. Avanos Medical, a prominent player in pain management and chronic care devices, has significantly contributed to reducing opioid use through its products. However, following the divestiture and sale of its respiratory health business unit to SunMed Group Holdings, the company announced an 18% decline in sales, a move that undoubtedly drew significant market attention.

Other spin-offs include 3M Health Care (now named Solventum) and Mozarc Medical, the latter being a kidney care company co-founded by Medtronic and DaVita.

Baxter Plans to Sell Its Kidney Care Business (Named Vantive) to Carlyle Group for $3.8 Billion.

In addition to growth driven by acquisitions, Inspire Medical Systems’ sales surged 53% in 2023 to reach $624.8 million. Inspire’s neurostimulator implants treat obstructive sleep apnea, offering patients an alternative to continuous positive airway pressure (CPAP) therapy after Philips exited the CPAP market following a wave of recalls. Inspire allocated 19% of its revenue to research and development while increasing its workforce by 34%.

Personnel changes vary.

This time, the majority of the top 100 medical technology companies also disclosed their employee numbers. These 83 companies reported a total workforce of 1.25 million, with 23 companies achieving double-digit growth in employee numbers. This represents a 6% increase from last year, though it remains slightly lower than the statistics from 2022.

M&A again drove employment growth, offsetting layoffs across the industry. For example, Globus Medical nearly doubled its workforce through its merger with NuVasive.

Before being acquired by Johnson & Johnson, Shockwave Medical's workforce grew by 47%.

Notably, MicroPort Scientific Corporation saw the largest reduction in employee numbers in the 2023 fiscal year, with a decrease of 1,205 employees (13%). CEO and Chairman Zhaohua Chang wrote in the annual report that, due to disruptions in the supply chain and the negative impact of tightened compliance controls on hospital surgeries, MicroPort "proactively adjusted its business strategy and implemented various cost-control measures," focusing on core products while reducing R&D and administrative expenses.

In contrast, despite a 4% decrease in sales, Mindray's ranking remained stable at 27th, and the number of employees increased by 12%, with overall changes being not significant.

Appendix: Medtech Big 100

▲Source of the article:Medical Device Innovation Network

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