More than 62% of the volume and 63% of the projected values of med-tech deals completed in 2020 are for one of two things: COVID-19 diagnostics and devices or digital health technologies that fall outside of the pandemic efforts.
As of late September, BioWorld has tracked 1,012 deals this year – including licensings, collaborations and joint ventures – valued at $3.67 billion, as well as 272 completed mergers and acquisitions valued at $8.53 billion.
Of the M&As, a total of 134, or 49%, involve digital health companies. The values of those completed M&As represent 52% of the total value for the year. Digital health deals reported include 429 valued at $1.14 billion, representing 42% and 31%, respectively, of the 2020 deal totals.
A significant number of the deals in 2020 are focused on the COVID-19 pandemic. The 298 deals that fall into this category have a value of $1.18 billion, 32% of the year’s total. Of those deals, 97 (33%) are categorized as digital health, while 156 (52%) are involving diagnostics. Almost all the COVID-19 deal money disclosed, 99.6% or $1.175 billion, is for diagnostics to detect the SARS-CoV-2 virus.
Of the digital health deals not focused on the pandemic, there were 332 worth $1.14 billion, representing 33% and 31%, respectively, of the 2019 totals.
While projected deal values pale in comparison to the full year of 2019, which saw $9.35 billion, the 1,013 deals has already exceeded the 898 from last year. Likewise, M&A values are significantly down from 2019’s $59.5 billion, but the numbers of completed M&As are just 15 short of last year.