• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Opinions
    • Top 30
    • Research
    • Supply Chain
    • Device Sectors
    • Directory
    • Events
    • Resources
    • Microsites
    • More
  • Magazine
  • News
  • Opinions
  • Top 30
  • Research
  • Supply Chain
  • Device Sectors
  • Directory
  • Events
  • Resources
  • Microsites
  • Current / Back Issues
    Features
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Reprints
    Subscribe Now
    Advertise Now
    Top Features
    Transporting Treatment: An Examination of Tubing Technologies

    Outward Appearance: Reviewing Surface Treatment Options

    Face to (Virtual) Face: Telemedicine Now and Post-Pandemic

    Voices for Medtech: AdvaMed and MDMA Leaders Share Thoughts

    Digitize Your QMS via an Enterprise Cloud Platform
    OEM News
    Supplier News
    Service / Press Releases
    Online Exclusives
    Press Releases
    People in the News
    Product & Service Releases
    Supplier News
    Medtech Makers
    Technical Features
    International News
    Videos
    Product & Service Releases
    Live From Shows
    Top News
    MICRO Expands with New Facility in Costa Rica

    DiaSorin to Buy Luminex for $1.8B

    Endologix Acquires PQ Bypass

    Algorithm Can Predict Acute Kidney Injury Sooner Than Hospital Systems

    Elixir Medical Begins Study of Metallic Implant for CAD Treatment
    From the Editor
    Blogs
    Guest Opinions
    Top Opinions
    Transporting Treatment: An Examination of Tubing Technologies

    Outward Appearance: Reviewing Surface Treatment Options

    Face to (Virtual) Face: Telemedicine Now and Post-Pandemic

    Voices for Medtech: AdvaMed and MDMA Leaders Share Thoughts

    Digitize Your QMS via an Enterprise Cloud Platform
    Top 30 Medical Device Companies
    Market Data
    White Papers
    Top Research
    Home Is Where the Heart (Valve) Is

    CGM: Digital Health Meets a Very Large Opportunity

    Biomechanical Engineer, Heal Thyself

    Optimizing MIM in Medical Device Manufacturing

    PPE and Diagnostics: Sourcing Domestically and Speeding Time to Market
    3D/Additive Manufacturing
    Contract Manufacturing
    Electronics
    Machining & Laser Processing
    Materials
    Molding
    Packaging & Sterilization
    R&D & Design
    Software & IT
    Testing
    Tubing & Extrusion
    Cardiovascular
    Diagnostics
    Digital Health
    Neurological
    Patient Monitoring
    Surgical
    Orthopedics
    All Companies
    Categories
    Company Capabilities
    Add New Company
    Outsourcing Directory
    Spectrum Plastics Group

    Concise Engineering

    maxon

    MW Life Sciences

    FUTEK Advanced Sensor Technology Inc.
    MPO Summit
    Industry Events
    Webinars
    Live From Show Event
    Industry Associations
    Videos
    Career Central
    eBook
    Slideshows
    Top Resources
    EMS Providers Valued for Product Customization, Medical Certification Expertise

    Three Future Trends and Opportunities in Quality Assurance

    Adopting a Data-Driven Quality Model

    Digital Transformation for Quality and Manufacturing

    Digging into the Cardiac Arrhythmia Monitoring Device Market
    Companies
    News Releases
    Product Releases
    Press Releases
    Product Spec Sheets
    Service Releases
    Case Studies
    White Papers
    Brochures
    Videos
    Outsourcing Directory
    Medbio LLC

    Qosina Corp.

    Medicoil

    Creganna Medical, part of TE Connectivity

    Unicep
    • Magazine
      • Current/Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Editions
      • Subscribe Now
      • Advertise Now
    • News
    • Directory
      • All Companies
      • ALL CATEGORIES
      • Industry Associations
      • Company Capabilities
      • Add Your Company
    • Supply Chain
      • 3D/Additive Manufacturing
      • Contract Manufacturing
      • Electronics
      • Machining & Laser Processing
      • Materials
      • Molding
      • Packaging & Sterilization
      • R&D & Design
      • Software & IT
      • Testing
      • Tubing & Extrusion
    • Device Sectors
      • Cardiovascular
      • Diagnostics
      • Digital Health
      • Neurological
      • Patient Monitoring
      • Surgical
      • Orthopedics
    • Top 30 Company Report
    • Expert Insights
    • Slideshows
    • Videos
    • Podcasts
    • Resources
    • eBook
    • Infographics
    • Whitepapers
    • Research
      • White Papers
      • Case Studies
      • Product Spec Sheets
      • Market Data
    • MPO Summit
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Microsite
      • Companies
      • Product Releases
      • Product Spec Sheets
      • Services
      • White Papers / Tech Papers
      • Press Releases
      • Videos
      • Literature / Brochures
      • Case Studies
    • About Us
      • About Us
      • Contact Us
      • Advertise with Us
      • eNewsletter Archive
      • Privacy Policy
      • Terms of Use
    Columns

    The Top 30 and M&A in 2021: What’s Next?

    With three of the top five companies appointing new CEOs in the last year and the global pandemic eroding earnings, M&A strategies could look a lot different.

    Related CONTENT
    • A Digital Stethoscope & Digital Health—A Medtech Matters Podcast
    • Why Use a Medical Grade Silicone for Your Components?
    • Three Future Trends and Opportunities in Quality Assurance
    • Adopting a Data-Driven Quality Model
    • USPTO Issues Patent Covering Hancock Jaffe’s VenoValve
    Florence Joffroy-Black and Dave Sheppard, MedWorld Advisors11.04.20
    With MPO’s annual Top Companies issue in the rearview mirror and the end of this bizarre year quickly approaching, we thought it would be the perfect time to provide an update on some of these firms’ M&A activities. Specifically, we’ll explore the likely pursuits for the upper half of the medtech industry’s leaders. With three of the top five companies appointing new chief executives in the last year and the global pandemic eroding earnings, M&A strategies could look a lot different going forward.

    1. Medtronic: Having changed leadership this year, it appears that Medtronic will continue to be active in M&A through incremental acquisitions. While former CEO and Chairman Omar Ishrak preferred high-impact deals (i.e., Covidien purchase), his replacement—Geoffrey S. Martha—seems keen on inorganic growth via bolt-on acquisitions to fill portfolio gaps and participate in adjacent spaces. Watch for several smaller deals from Medtronic in 2021.

    2. J&J: With Ashley McEvoy as executive vice president and worldwide chairman of Medical Devices, J&J seems poised to be aggressive on acquisitions of all sizes that benefit patients. In announcing the Auris Health acquisition last February, she noted that J&J is “focused on building a connected, data-driven digital ecosystem that pairs…surgical solutions with advanced technologies to improve the patient experience.” Translation: Digital health is now a key part of the company’s long-term growth strategy. Auris won’t be the last of J&J’s digitally-driven purchases.

    3. Abbott Laboratories: Since acquiring both St. Jude Medical Inc. and Alere Inc. in the last several years, former CEO Miles White eased up on M&A to allow the company to digest its purchases and firm up its operating efficiencies as a larger entity. White’s retirement could induce a return to a more aggressive M&A strategy under the direction of new CEO Robert Ford. Stay tuned.

    4. GE Healthcare: Loyal Wall Street observers have watched General Electric struggle with its balance sheet for the past few years. Those struggles prompted the company to divest its Life Sciences business to Danaher Corporation for approximately $21 billion last year. With Larry Culp as CEO, GE seems to be improving its cashflow, which should allow GE Healthcare’s executive team to pursue more targeted deals in 2021. Smaller, tuck-in purchases seem to be a favored tactic here, so don’t expect any major acquisitions in the next 12 months. But, never say never: Siemens Healthineers’ $16.4 billion acquisition of Varian Medical Systems Inc. (August) could lead GE Healthcare to make a play for Swiss radiotherapy provider Elekta.

    5. BD: CEO Vincent Forlenza’s retirement in January left new chief executive Thomas Polen in charge of defining the company’s role in battling COVID-19, as well as shaping its future growth strategy. Besides the pandemic, Polen’s first priorities have included addressing the company’s EtO sterilization challenges and the Alaris infusion pump recall. BD needs some new products across its business segments, so watch for smaller, more incremental deals next year to fill portfolio gaps.

    6. Philips Healthcare: Philips has built its Image-Guided Therapies business through aggressive M&A in recent years, including its $275 million acquisition of Intact Vascular in August. Yet the company also has bolstered its Connected Care segments through incremental technology grabs. This combination will presumably continue as Philips focuses on its core segments but like GE Healthcare, Philips might be eyeing up Elekta to counter the Siemens-Varian union.

    7. Siemens Healthineers: The blockbuster Siemens-Varian deal has most certainly shaken the landscape of major imaging companies. By purchasing Varian, Siemens is taking an aggressive approach in its attempt to gain cancer diagnostics market share. The company will probably scale back on M&A early next year to allow time for Varian’s integration but then return after that to pursuing bolt-on deals to bolster key product portfolios.

    8. Cardinal Health: Growth in the company’s medical device business has been difficult in recent years, despite its $6 billion acquisition of former Covidien business units from Medtronic plc in 2017. The global pandemic may have boosted Cardinal’s performance in the short run, perhaps giving the firm the incentive it needs to reinvigorate its business strategy. Although the opportunity for growth exists through commercial channels, the company’s poor R&D/innovation performance shows that Cardinal will have to secure its future with some savvy M&A.

    9. Stryker Corp.: An aggressive growth company (organically and inorganically), Stryker always seems to have a trick or two up its sleeve. Case in point: Its 2017 acquisition of NOVADAQ Technologies Inc. was a twist that most analysts did not expect. Since then, Stryker has added to its imaging platform with the $500 million acquisition of Mobius Imaging LLC. Yet not all of the company’s deals are surprising, as evidenced by its bid for Wright Medical (still under U.S. and U.K. antitrust reviews). Stryker most likely continue its aggressive approach to M&A next year, though it may confound Wall Street with another surprise or two.

    10. Baxter: CEO Joe Almeida’s growth strategy has always been “back to future.” Since his tenure as Covidien’s chief executive, Almeida has worked to boost his company’s portfolio through innovation and inorganic activity; in essence, he’s creating a future that builds on past successes. Unfortunately, Baxter’s accounting missteps have temporarily sidetracked the company’s M&A activity but that could change in 2021 as Almeida seeks out incremental acquisitions to augment his company’s existing innovations. A major deal, however, is not out of the question.

    11. Boston Scientific Corp.: Under Michael C. Mahoney’s leadership, Boston Scientific has consistently been lauded for its M&A strategy and execution. Inorganic actions have significantly boosted the company’s growth rates and bottom line but COVID-19 took a big bite out of profits. Nevertheless, expect Boston Scientific to engage in another shopping spree next year as it regains its financial footing.

    12. EssilorLuxottica: After partnering in a grand merger two years ago, EssilorLuxottica tried expanding its market presence by offering an $8 billion dowry for Dutch opticians group GrandVision. However, EU regulators and the global pandemic have stalled the proposed union. EssilorLuxottica hasn’t given up, though, and will likely fight for GrandVision’s hand in marriage in 2021. In the meantime, don’t expect much new M&A activity from EssilorLuxottica, as it clearly is distracted on many levels.

    13. B.Braun: Another leadership change, another uncertain road ahead for M&A. Historically, B.Braun has been very methodical and purposeful about selective M&A; based on its culture, that selectivity should continue, though new CEO of America Jean-Claude Dubacher (replacement for Caroll Neubauer) could have a different M&A strategy in mind. Only time will tell.

    14. Zimmer Biomet Holdings Inc.: With Bryan Hanson at the helm, Zimmer Biomet was becoming a Wall Street darling for its impressive earnings growth. Coming into 2020, analysts expected the company to get more aggressive with tuck-in M&A activity but the pandemic-induced suspension of elective surgeries significantly impacted Zimmer Biomet’s finances. Consequently, the company has had more of an operational focus this year as it tries to regain lost profit. Once COVID-19 is finally under control (perhaps in 2021?) Zimmer Biomet will be back on the hunt for bolt-on acquisitions that stimulate growth and expand its offerings.

    15. 3M: At its core, 3M is a diverse business with proud legacy product lines but its healthcare business, has historically experienced minimal growth. However, the company has attempted to jump-start its healthcare earnings in recent years through aggressive portfolio management (divestitures and acquisitions). Last year’s purchase of Acelity has had a significant impact on its healthcare group performance and momentum. Although it understandably has been distracted this year with COVID-19-related PPE shortages, 3M will be back in the M&A game (aggressively, no doubt) in the coming years. Certainly, additional incremental acquisitions should be expected, though it wouldn’t be all that surprising to see 3M forge another Acelity-type deal to enhance its healthcare business status and momentum.

    In summary, we expect industry strategics to be aggressive in M&A next year with most deals being incremental in nature to bolster portfolios and/or financial performance. However, it will be exciting to watch for the next blockbuster acquisition that will become another dynamic game-changer in the medtech industry. 


    Florence Joffroy-Black, CM&AA, is a longtime marketing and M&A expert with significant experience in the medical technology industry, including working for multi-national corporations based in the United States, Germany, and Israel. She currently is CEO at MedWorld Advisors and can be reached at florencejblack@medworldadvisors.com.

    Dave Sheppard, CM&AA, is a former medical technology Fortune 500 executive and is now focused on M&A as a managing director at MedWorld Advisors. He can be reached at davesheppard@medworldadvisors.com.
    Suggested For You
    A Digital Stethoscope & Digital Health—A Medtech Matters Podcast A Digital Stethoscope & Digital Health—A Medtech Matters Podcast
    Why Use a Medical Grade Silicone for Your Components? Why Use a Medical Grade Silicone for Your Components?
    Three Future Trends and Opportunities in Quality Assurance Three Future Trends and Opportunities in Quality Assurance
    Adopting a Data-Driven Quality Model Adopting a Data-Driven Quality Model
    USPTO Issues Patent Covering Hancock Jaffe’s VenoValve USPTO Issues Patent Covering Hancock Jaffe’s VenoValve
    Viant Completes Expansion of Costa Rica Facility Viant Completes Expansion of Costa Rica Facility
    Digging into the Cardiac Arrhythmia Monitoring Device Market Digging into the Cardiac Arrhythmia Monitoring Device Market
    SMC Ltd. Expands Costa Rica Facility SMC Ltd. Expands Costa Rica Facility
    Berlin Heals Berlin Heals' C-MIC Heart Failure Implant Achieves Breakthrough Device Status
    Cloud and AI Accelerating Global Medical Imaging Informatics Market Cloud and AI Accelerating Global Medical Imaging Informatics Market
    Non-Dilutive Funding—A Medtech Matters Podcast Non-Dilutive Funding—A Medtech Matters Podcast
    Grant Issued for Development of 3D-Printed Resorbable Medical Implants Grant Issued for Development of 3D-Printed Resorbable Medical Implants
    Philips Survey Reveals COVID-19’s Negative Impact on Sleep Quality, CPAP Use Philips Survey Reveals COVID-19’s Negative Impact on Sleep Quality, CPAP Use
    Second Sight Aborts Business Combination with Pixium Vision Second Sight Aborts Business Combination with Pixium Vision
    BD to Invest $65M in Tucson, Arizona Supply Chain Hub BD to Invest $65M in Tucson, Arizona Supply Chain Hub

    Related Columns

    • Cardiovascular | Surgical
      Home Is Where the Heart (Valve) Is

      Home Is Where the Heart (Valve) Is

      Artificial heart valve makers reached a number of milestones despite the pandemic’s global squeeze.
      Sam Brusco, Associate Editor 04.01.21

    • Chronic Disease | Digital Health | Patient Monitoring
      CGM: Digital Health Meets a Very Large Opportunity

      CGM: Digital Health Meets a Very Large Opportunity

      Continuous glucose monitors (CGMs) are one of the most formidable diabetes management tools to be developed in decades.
      Maria Shepherd, President and Founder, Medi-Vantage 04.01.21

    • Surgical
      Biomechanical Engineer, Heal Thyself

      Biomechanical Engineer, Heal Thyself

      Choosing a treatment option for spinal disorders can be tricky with extensive knowledge of the industry.
      Dawn A. Lissy, Founder & President, Empirical 04.01.21


    • Molding | Surgical
      Optimizing MIM in Medical Device Manufacturing

      Optimizing MIM in Medical Device Manufacturing

      Metal injection molding (MIM) is a good choice for producing medium- to high-volume medtech parts.
      Steve Santoro, Executive Vice President, MICRO 04.01.21

    • Diagnostics
      PPE and Diagnostics: Sourcing Domestically and Speeding Time to Market

      PPE and Diagnostics: Sourcing Domestically and Speeding Time to Market

      With smart onshoring strategies, the medical device industry can collaborate to fix supply chain issues.
      Claudio Hanna and Ralph Tricomi , Web Industries 04.01.21

    • Testing
      The Evolution of Chemical Characterization for Medical Devices

      The Evolution of Chemical Characterization for Medical Devices

      Evaluation of biological safety of devices is experiencing some of the most significant changes in history.
      Sandi Schaible, Senior Director, Analytical Chemistry and Regulatory Toxicology, WuXi AppTec Medical Device Testing 04.01.21


    • Digital Health
      How Digital Health Fits into the Medtech Mold

      How Digital Health Fits into the Medtech Mold

      Healthcare will need to adopt digital technologies that streamline and enhance connectivity.
      Florence Joffroy-Black and Dave Sheppard, MedWorld Advisors 04.01.21

    • Global Supply Chain Wisdom from Coronavirus-Colored Lenses

      Global Supply Chain Wisdom from Coronavirus-Colored Lenses

      There are precious pearls of wisdom from this past year that will come in handy during the next “crisis.”
      Chris Oleksy, Founder and CEO, Oleksy Enterprises and Co-Founder Next Life Medical; CEO, Emergent Respiratory 04.01.21

    • Four Considerations When Selling to a Private Equity Fund

      Four Considerations When Selling to a Private Equity Fund

      A private equity partner can help medtech firms expand into new markets and serve existing clients better.
      Bill Hadler and Anisa Mohanty, McDermott Will & Emery 04.01.21


    • Software & IT
      Cybersecurity Compromises, Courtesy of COVID-19

      Cybersecurity Compromises, Courtesy of COVID-19

      As the healthcare industry focused its energies last year on battling SARS-CoV-2, cybercriminals used the distraction to their advantage.
      Michael Barbella, Managing Editor 03.04.21

    • A Look at the Actual Device Costs for Hospitals

      A Look at the Actual Device Costs for Hospitals

      According to a 2018 clinical journal article, U.S. hospitals spent approximately $200 billion on medical devices.
      Maria Shepherd, President and Founder, Medi-Vantage 03.04.21

    • Show Time: Here’s What a Year of No Tradeshows Meant for Small Businesses

      Show Time: Here’s What a Year of No Tradeshows Meant for Small Businesses

      For small businesses, trade shows are a critical part of developing new business as well as maintaining contacts.
      Dawn A. Lissy, Founder & President, Empirical 03.04.21


    • FDA Making Progress With Technology and Data Action Plans

      FDA Making Progress With Technology and Data Action Plans

      There is an urgent need to get advanced technologies into the healthcare ecosystem, but all products must first get regulatory approval.
      Alan Rencher, Vice President, Engineering, MasterControl 03.04.21

    • What’s Hot Now in Medtech M&A

      What’s Hot Now in Medtech M&A

      Every M&A cycle in the life sciences/medtech sector fosters exciting deals that interestingly impact the industry in both the short and long term.
      Florence Joffroy-Black and Dave Sheppard, MedWorld Advisors 03.04.21

    • Software & IT
      Three Ways to Fast-Track the Total Product Lifecycle

      Three Ways to Fast-Track the Total Product Lifecycle

      Here are three ways leaders including Alcon, Baxter Healthcare, Boston Scientific, Epredia, and Illumina are driving innovation in medtech.
      Seth Goldenberg, Ph.D., Vice President, MedTech, Veeva Systems 03.04.21


    Trending
    • Endologix Acquires PQ Bypass
    • Survey: Remote Patient Monitoring To Match Or Surpass In-Patient Within Five Years
    • DiaSorin To Buy Luminex For $1.8B
    • 5 Ways Plastics Revolutionized The Healthcare Industry
    • Avantor To Acquire Ritter GmbH And Affiliates For $1B
    Breaking News
    • MICRO Expands with New Facility in Costa Rica
    • DiaSorin to Buy Luminex for $1.8B
    • Endologix Acquires PQ Bypass
    • Algorithm Can Predict Acute Kidney Injury Sooner Than Hospital Systems
    • Elixir Medical Begins Study of Metallic Implant for CAD Treatment
    View Breaking News >
    CURRENT ISSUE

    April 2021

    • Transporting Treatment: An Examination of Tubing Technologies
    • Face to (Virtual) Face: Telemedicine Now and Post-Pandemic
    • Outward Appearance: Reviewing Surface Treatment Options
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    4-week Fish Oil Regimen Showed Significant Muscular Damage Protection in Recent Study
    Review Covers Role of Vitamin K2 in the ‘Calcium Paradox’
    KD Pharma Acquires Rohner AG Manufacturing Assets
    Coatings World

    Latest Breaking News From Coatings World

    Jebsen & Jessen, Innospec Sign Distribution Agreement
    Sika Expands Production Capacity in Qatar
    Sto Corp. ISO Certifications Extended
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    MICRO Expands with New Facility in Costa Rica
    DiaSorin to Buy Luminex for $1.8B
    Endologix Acquires PQ Bypass
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Catalent Biologics Completes Madison Expansion
    Lonza Expands PyroTec PRO for Endotoxin Testing
    FDA Accepts Airway Therapeutics’ IND for COVID Treatment
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Revieve Launches Skin Coach
    Carlyle Group Acquires Majority Stake in Beautycounter
    The Honest Co. Files for an Initial Public Offering
    Happi

    Latest Breaking News From Happi

    Babor Professional Skin Care Names McCaffrey as Vice President of Sales
    Diamond Chemical Appoints Technical Service Representative
    Carlyle To Acquire Majority Stake in Beautycounter
    Ink World

    Latest Breaking News From Ink World

    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    SE-DA Invests in Kornit Presto S
    Iron Oxide Pigments Market to Register 4.7% CAGR from 2021 to 2028: GVR
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Enprom helps converter respond to flexible packaging needs
    anytron assists medical device company with labeling
    Dantex debuts new capabilities with white ink opacity
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Aries Face Masks Meet ASTM Standards
    Tufropes Launches Inherently Antibacterial and Antimicrobial Spunbond
    NXTNano Adding Three Lines
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    GreenBone Ortho Closes 10 Million Euros Series B Funding Round
    SynerFuse, Cirtec Medical Partner to Develop Back Pain Management Device
    New Biosealant Could Stabilize Cartilage, Boost Healing After Injury
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Virtual ASMC 2021 Spotlights Advanced Semiconductor Manufacturing Excellence
    First Solar Series 6 CuRe has Industry’s Lowest Warranted Degradation Rate
    SEMI: 2020 Global Semiconductor Equipment Sales Surge 19% to Industry Record $71.2 Billion

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login