Source: Siyu MedTech; Editor: Sophia
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Recently, a well-known investment bank on Wall StreetNeedhamAnalysts say the number of medtech M&A deals is expected to drop to its lowest level since 2017 in 2024.
Mid-year, the volume of M&A transactions declined, but the transaction value increased. Analysts believe that in an environment of stable interest rates and low valuations,The number of M&A transactions may rebound.
However, analysts believe that antitrust issues may be an obstacle that mergers and acquisitions have to face. At least until the end of the U.S. presidential election, the pressure from antitrust will persist.
The Needham Medical Technology M&A Database shows that, as ofAround the middle of 2024,Total Completion131PenTransaction, Value$32.4 billion。
Based on this inference and prediction, analysts estimate that there may be a total of in 2024269 entriesTransaction, Value$66.4 billion
If the forecast is correct, the number of transactions in 2024 will be lower than any year since 2017.
Source: Medi-Vantage
According to McKinsey statistics,2023A total of745 entriesTransaction, wherein91%The transaction value is less than$1 billion，54%The transaction value is less than$100 million。
Biotechnology and pharmaceutical transactions account for the majority of the transaction volume, respectively.61%And23%。
However, analysts see potential for a rebound in M&A trends.
Interest rates "seem to have peaked" and may decrease;
The medical technology market is in a relatively stable state;
According to historical standard data, the valuation of small and medium-sized medical enterprises is currently low.
So, what types of acquisition targets do large medical technology companies tend to favor?
Needham said,"We believe that large medical technology companiesMore inclined to acquire companies with high-speed growth and huge market opportunities;
Secondly, tend toHigh gross margin, diverse product portfolioAndWith technical barriers (such as享有专利)Such companies as Johnson & Johnson."
Needham Once Released a List of the Most Acquisition-Attractive Medical Companies, Featuring 25 Enterprises.Among themNeuropace, Zimvie, Artivion, and MasimoHas entered the list, replacingNevro, Shockwave Medical, and Silk Road Medical。Among them, Nevro fell off the list due to not meeting the "high growth" criteria, and the other two companies have already been acquired. Apart from these, the rest of the companies remained on the original list.Axonics Has Also Been Acquired。
On April 5, 2024, Johnson & Johnson and Shockwave Medical announced a definitive agreement under which Johnson & Johnson will acquire all outstanding shares of Shockwave in a transaction valued at approximately $13.1 billion, including cash consideration.Other transactions are related to Boston Scientific. In January, the company agreed to acquire Axonics, a manufacturer of devices for urinary and bowel dysfunction, for $3.7 billion.
At the same time, the company is also working hard to complete the acquisition of Silk Road Medical.June 18, 2024BossDun ScienceAnnounced that it will$1.16 billionAcquisitionThe Company that Pioneered Transcarotid Artery Revascularization (TCAR)——Silk Road Medical。$8.4 Billion! Boston Scientific Announces Acquisition of Transcarotid Artery Revascularization Company
Based on the available data so far, although the number of transactions in the first half of 2024 was not high, the value of M&A transactions increased significantly.
Needham stated that although the total transaction value for 2024 seems to be lower than expected (the figure set in 2021), medtech companies spent more in the first six months of this year than they did in the whole of 2023.
Perhaps the M&A trend will pick up somewhat in the second half of the year. The number of deals may not surge, but the total value of M&A transactions is expected to increase compared to 2023.
# A Quick Look at the List of Most Acquirable Medical CompaniesNeedham's report on the most acquisition-attractive companies released on May 20, 2022。This report only fromCompany Product Portfolio, Company Growth Rate, Profit Margin PerspectiveThe evaluation did not take into account the company's valuation. Some companies may not be acquired due to an excessively high valuation.According to the latest updates, currentlyNeuropace, Zimvie, Artivion, and MasimoHas entered the list, replacingNevro, Shockwave Medical, and Silk Road Medical。Excluding companies that are currently being acquired or have already been acquired, the restSome companiesThe information is organized as follows:1. AtriCure（Aichuang Technology）
Main Product Lines AreAblation of Cardiac Tissue, including collaborative system bipolar ablation forceps system and related radiofrequency ablation equipment.AtriCure also ownsFrozen Product Line, characterized by reusable equipment and single-use freezing.In 2021, AtriCure'sEPi Sense®Guiding Coagulation SystemApproved for the treatment of long-standing persistent atrial fibrillation.The cryoprobe under its umbrella, as well asThe EPi Sense Guided Coagulation System is expected to become an important driver of the company's growth.2. Cardiovascular Systems（CSI）An American medical device company dedicated to developing and commercializing innovative solutions for the treatment of peripheral and coronary artery diseases.The company has issued several announcements regarding its product lines and development partnerships, including the collaboration with Innova Vascular to develop a full range of thrombectomy devices, which is expected to provide the company access to higher-growth end markets.An ophthalmic medical technology and pharmaceutical company focused on the development and commercialization of treatmentsGlaucoma, Corneal Diseases, and Retinal DiseasesNew therapy.Under its umbrellaMinimally Invasive Implant Device iStent infiniteFDA ApprovedCity,For patients with primary open-angle glaucoma who are unresponsive to medication and surgical treatment.Net sales in the third quarter of the company's 2023 fiscal year were $78 million, a year-over-year increase of 10%. Net sales of the glaucoma business in the third quarter were $58.3 million, a year-over-year increase of 9%.4. Inspire Medical SystemsA medical technology company dedicated to developing and commercializing innovative minimally invasive solutions for patients with obstructive sleep apnea.The proprietary Inspire system is the first and only FDA-approved neurostimulation technology that can safely and effectively treat moderate to severe obstructive sleep apnea (OSA).In the 26 quarters from 2017 to 2023, the company maintained growth for 25 quarters, with all growth rates being in double digits.Developing disruptive minimally invasive surgical products and cervical disc replacement devices, a globally renowned spinal medical device company.NuVasive currently ownsMore than 90Products, includingAccess Instruments, Expandables, Interbodies, FixationThe four major categories.Through different product combinations and integrated technologies, NuVasive is able to provide comprehensive solutions for minimally invasive surgeries of the anterior, posterior, and cervical spine, helping treat conditions such as intervertebral disc degeneration, lumbar spinal stenosis, degenerative spondylolisthesis, cervical disc degeneration, early-onset scoliosis, and limb length discrepancies.A global leading company in spine and orthopedics, with a comprehensiveBiologics, Innovative Spinal Hardware, Bone Growth Therapies, Specialized Orthopedic Solutions, and Leading Surgical Navigation Systems Portfolio. Its products are distributed across 68 countries worldwide.Galaxy Fixation Gemini™ SystemAs the latest product in the Galaxy series, it is a stable external fixation system that provides a variety of sterile surgical kit configurations (ensuring safety and hygiene during surgery or procedures) and serves as a rapid, ready-to-use solution for treating fractures caused by trauma to the lower and upper limbs.A global healthcare company focused on innovative therapies, dedicated to addressingIschemic stroke, hemorrhagic stroke, and peripheral vascular disease.Its independently developed Indigo thrombectomy system has received FDA approval for the removal of thrombus in peripheral arteries and veins, as well as for the treatment of pulmonary embolism.
Lightning 12 is Penumbra's next-generation aspiration system for peripheral thrombectomy, combining the CAT 12 aspiration catheter with Lightning intelligent aspiration, allowing physicians to optimize thrombus removal using the system’s unique clot detection mechanism while reducing patient blood loss.SacrumBasinGlobal Leader in Anatomical Structure, Musculoskeletal Disorders, and Surgical Treatment TechniquesIn 2009, SI-BONE launched the iFuse Implant System for minimally invasive SI joint surgery.
May 2022Company Announces FDA 510(k) Pre-Market Clearance for iFuse Bedrock Granite Implant System (Granite).Granite implants provide sacroiliac joint fusion and sacral fixation, which are fundamental elements for segmental spinal fusion. Focus on the design, research and development, and manufacturing of ophthalmic medical products.，A leading company in the field of myopia correction.The company's Visian ICL has brought a revolutionary breakthrough to the field of ophthalmology.In addition to Visian ICL, it also includes lenses and medical devices related to the treatment of cataracts and glaucoma.The company focuses on dentistry, including dental implants, surgical tools, non-fusion alternatives, and digital care management solutions. Recently, Bloomberg reported that strategic investors and industry players have shown interest in merger and acquisition deals following the spin-off of its spinal business.Following the announcement, Zimvie's stock price rose above $18, with the company's market value reaching nearly $497 million.Currently, the competition in innovative technologies among medical technology companies is becoming increasingly fierce. Speeding up mergers and acquisitions is a viable method to broaden their product portfolios and strengthen their positions in the global market.
Editor-in-Chief | Zhao Qing Reviewed by | Yi He
