LONDON, Oct. 17, 2016
LONDON, Oct. 17, 2016 /PRNewswire/ -- Despite a buoyant mergers and acquisitions (M&A) market and a solid performance in venture capital financing, other financial metrics suggest the global medtech industry is struggling to grow as significant changes in technology and reimbursement combine with the greater empowerment of consumers to reshape health care. These and other findings were released today in Pulse of the Industry, the 2016 edition of the EY annual medical technology industry report.
Pamela Spence, EY Global Life Sciences Leader, says:
"Key financial indicators point to a medtech industry in transition. As the distinctions between traditional medtech, biopharma and infotech continue to blur, many incumbents recognize that business model change is essential. These organizations have responded creatively, adding technological capabilities and commercial scale to better deliver improved health outcomes that are evidence-based."
As Pulse of the Industry documents, in 2015-16 there was greater evidence of medtechs aligning with non-traditional partners such as information technology companies and payers. These partnerships allowed medtechs to access novel capabilities in data analytics, computational power and sensors to enable the development of future products and services that represent a step change in patient care.
Key findings highlighted in this year's report include:
John Babitt, EY Americas Medtech Leader, says:
"Growth-by-acquisition was the medtech industry's go-to-strategy over the last year and is likely to remain so as companies continue to focus on their strategic priorities. In this environment, companies must invest more in partnerships, M&A and research and development, rather than continuing a status quo that relies heavily on returning cash to shareholders."
Notes to Editors
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How EY's Global Life Sciences Sector can help your business
Life sciences companies — from emerging start-ups to multinational enterprises — face new challenges in a rapidly changing health care ecosystem. Payers and regulators are increasing scrutiny and accelerating the transition to value and outcomes. Big data and patient-empowering technologies are driving new approaches and enabling transparency and consumerism. Players from other sectors are entering health care, making collaborations increasingly complex. These trends challenge every aspect of the life sciences business model, from R&D to marketing. Our Global Life Sciences Sector brings together a worldwide network — more than 9,000 sector-focused assurance, tax, transaction and advisory professionals — to anticipate trends, identify their implications and develop points of view on responding to critical issues. We can help you navigate your way forward and achieve success in the new ecosystem.
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SOURCE EYPR Newswire
Last updated on: 17/10/2016
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