Christopher Delporte, Editorial Director11.30.-1
Predictions, predictions. It’s always fun to speculate about what the New Year will hold. While that kind of conjecture makes interesting fodder for Thanksgiving dinner chitchat with rarely seen relatives during a second slice of pumpkin pie or for fun office holiday party conversation with the gang from accounting, medical technology companies need more than idle speculation as they prepare for the near and longer terms.
In this issue of Medical Product Outsourcing, we look back at 2013 not just to rehash the largest deals, the most impactful trends or the latest technological breakthroughs, but more importantly to provide thoughtful feedback about how and why things happened in order to better prepare for the road ahead. Our annual year-in-review (page 32) and regulatory (page 40) features really are more about preparing for 2014 and beyond.
“The regulatory challenges in the U.S. and Europe, the reimbursement challenges, the lack of venture capital—all that was the same this year. And I think that we should not continue with the same negative views but look to the solutions,” Vicki Anastasi, senior vice president of medical devices for Aptiv Solutions, told MPO for our year-in-review article. “It’s time for the industry and the investors to look for ways to accept this new reality and do what we need to do. Next year, we need to focus on efficiencies,
addressing trial design and linking our results to health economics to address the challenges of regulatory, reimbursement and funding.”
And what would future planning be without some facts and figures to help set a course?
According to a report released this fall, the medical device and diagnostics market is set to grow at a compound annual growth rate (CAGR) of 4.5 percent per year between 2012 and 2018, totaling $455 billion in 2018. The report, titled “EvaluateMedTech World
Preview 2013, Outlook to 2018: The Future of Medtech” from London, England-based market intelligence firm Evaluate Ltd., predicts that in-vitro diagnostics (IVD) will retain its position as the world’s largest medtech segment in 2018, with global sales totaling $58.8 billion, followed by cardiology and then diagnostic imaging.
While the IVD category holds the greatest market share, neurology has set the pace as the fastest-growing of the top 15 device areas, with an annual growth rate of 6.9 percent projected between 2012 and 2018. Meanwhile, the diabetic care and orthopedics categories are expected to be the slowest growing of the top 15 device areas, expanding by only 3.4 percent per year (CAGR) between 2012 and 2018.
“Despite the medtech industry having a tough first half of 2013, with M&A (mergers and acquisition) deal values and premarket
approvals (PMAs) declining, consensus forecasts predict healthy growth in the months and years ahead resulting in a $455 billion market by 2018,” said Ian Strickland, product manager of EvaluateMedTech and author of the report. “Within the industry, the leading segment of in-vitro diagnostics continues to grow more strongly than the medtech market as a whole, thanks to advances in molecular diagnostics and drugs becoming increasingly linked to diagnostic tests.”
The report also examines key topics including research and development (R&D) spending, company performance by segment, U.S. Food and Drug Administration (FDA) approvals, M&A deal values and venture financing.
Among the report’s key findings:
Christopher Delporte
Editorial Director
cdelporte@rodmanmedia.com
In this issue of Medical Product Outsourcing, we look back at 2013 not just to rehash the largest deals, the most impactful trends or the latest technological breakthroughs, but more importantly to provide thoughtful feedback about how and why things happened in order to better prepare for the road ahead. Our annual year-in-review (page 32) and regulatory (page 40) features really are more about preparing for 2014 and beyond.
“The regulatory challenges in the U.S. and Europe, the reimbursement challenges, the lack of venture capital—all that was the same this year. And I think that we should not continue with the same negative views but look to the solutions,” Vicki Anastasi, senior vice president of medical devices for Aptiv Solutions, told MPO for our year-in-review article. “It’s time for the industry and the investors to look for ways to accept this new reality and do what we need to do. Next year, we need to focus on efficiencies,
addressing trial design and linking our results to health economics to address the challenges of regulatory, reimbursement and funding.”
And what would future planning be without some facts and figures to help set a course?
According to a report released this fall, the medical device and diagnostics market is set to grow at a compound annual growth rate (CAGR) of 4.5 percent per year between 2012 and 2018, totaling $455 billion in 2018. The report, titled “EvaluateMedTech World
Preview 2013, Outlook to 2018: The Future of Medtech” from London, England-based market intelligence firm Evaluate Ltd., predicts that in-vitro diagnostics (IVD) will retain its position as the world’s largest medtech segment in 2018, with global sales totaling $58.8 billion, followed by cardiology and then diagnostic imaging.
While the IVD category holds the greatest market share, neurology has set the pace as the fastest-growing of the top 15 device areas, with an annual growth rate of 6.9 percent projected between 2012 and 2018. Meanwhile, the diabetic care and orthopedics categories are expected to be the slowest growing of the top 15 device areas, expanding by only 3.4 percent per year (CAGR) between 2012 and 2018.
“Despite the medtech industry having a tough first half of 2013, with M&A (mergers and acquisition) deal values and premarket
approvals (PMAs) declining, consensus forecasts predict healthy growth in the months and years ahead resulting in a $455 billion market by 2018,” said Ian Strickland, product manager of EvaluateMedTech and author of the report. “Within the industry, the leading segment of in-vitro diagnostics continues to grow more strongly than the medtech market as a whole, thanks to advances in molecular diagnostics and drugs becoming increasingly linked to diagnostic tests.”
The report also examines key topics including research and development (R&D) spending, company performance by segment, U.S. Food and Drug Administration (FDA) approvals, M&A deal values and venture financing.
Among the report’s key findings:
- Sales growth in the medtech industry is set to outperform the prescription drug market between 2012 and 2018, with a CAGR of 4.5 percent compared with pharma’s more modest 3.8 percent.
- Johnson & Johnson is expected to take the market-leading spot by 2018 with $33.4 billion in worldwide medtech sales.
- Global medtech R&D spending is set to grow by 3.9 percent per year to reach $26.7 billion by 2018. Siemens is seen to be the top R&D spender with its investment in new medtech programs forecast to reach $2 billion by 2018.
- First-time premarket approvals decreased 5 percent to 41 in 2012. The FDA approved 14 new PMAs in 2013 to the end of August, representing a 42 percent decline over the same period last year.
- M&A deal value fell by a startling 79 percent in the first half of 2013 compared with the same period in 2012. Deal counts dropped 15 percent.
- Venture financing fell 14 percent in 2012 to $3.8 billion but expanded 6 percent in the first half of 2013, reaching $2.5 billion.
Christopher Delporte
Editorial Director
cdelporte@rodmanmedia.com