In one of the most extraordinary years for med-tech mergers and acquisitions, 2021 is the culmination of a snowballing interest in maturing digital technologies amid mounting COVID-19 pandemic problems and uncertain futures. Societal lockdowns in 2020 boosted notice of telehealth, testing and remote monitoring devices, but that notice ramped up even more in 2021, not only as new SARs-CoV-2 variants emerged, but as businesses sought innovative ways of delivering their products.
While med-tech financings in 2021 fell about 17% below the amount raised in 2020, the industry still collected $49.26 billion, significantly more than each of the two previous years, and driven primarily by digital health and diagnostic technologies.
China’s med-tech products exports declined in 2021 as manufacturing in other countries picked up, while med-tech imports to the country increased. In the first half of 2021, China’s med-tech exports amounted to $47.931 billion, a decrease of 23.1% year-on-year. But imports for the same period amounted to $24.392 billion, an increase of 25.2% year-on-year, according to med-tech data company Guangzhou Joinchain Big Data Technology Co. Ltd.
Every year, the BioWorld team takes time to look back and assess the market-moving and life-changing stories and trends of the year. Without a doubt, COVID-19 shook humanity to the core, again. And like glioblastoma, the tentacles of COVID-19 invaded far beyond the obvious and ultimately changed the world. So that’s our top story of the year. But the biopharmaceutical industry is resilient and responsive. Even though there were tectonic shifts in efforts to bring an armamentarium of COVID-19 vaccines and therapeutics to patients with record-breaking speed, work continued on other fronts.
Announcements of new radiology solutions enhanced by artificial intelligence (AI) and machine learning appeared almost daily in 2021, all promising more accurate diagnoses in less time and increased productivity and confidence for radiologists. Hospitals and health care systems have increasingly recognized the advantages of these systems, with Sage Growth Partners reporting that 90% of hospitals have an AI strategy in place, up from 53% in 2019, but the deployment lags, with only 34% of hospitals having installed an AI solution.
Investor appetite for digital mental health technologies is expected to continue in 2022, although startups will face the challenge of standing out from competition. Venture capital firm Rock Health reported funding for digital mental health startups was the top-funded therapeutic focus in 2021, with $3.1 billion raised by the end of Q3. Key trends are emerging, as investors seek companies addressing complex mental health conditions.
Every year, the BioWorld team takes time to look back and assess the market-moving and life-changing stories and trends of the year. Without a doubt, COVID-19 shook humanity to the core, again. And like glioblastoma, the tentacles of COVID-19 invaded far beyond the obvious and ultimately changed the world. So that’s our top story of the year. But the biopharmaceutical industry is resilient and responsive. Even though there were tectonic shifts in efforts to bring an armamentarium of COVID-19 vaccines and therapeutics to patients with record-breaking speed, work continued on other fronts.
2021 may mark the beginning of a new phase in treatment of depression. While genetic matching of depression therapies to patients has been touted for a decade, meta-analyses have not supported claims of improved response rates with studies often finding that any improvements seen likely came from switching patients to guideline-recommended therapies rather than any insight from genetics.
Diabetes care will continue to evolve in 2022. New digital offerings and advanced algorithms, along with new product launches in insulin pumps and continuous glucose monitoring (CGM) will power growth in the future, according to key analysts. While many medical device sectors have suffered during the COVID-19 pandemic, diabetes care has continued to grow.
Although 2021 med-tech deal volume is 13% higher than last year, the deals represent less than half the value recorded in 2020. The industry has completed 1,576 deals, including licensings, collaborations and joint ventures, through mid-December of 2021. They are valued at $2.13 billion. A total of 573 M&As, on the other hand, have reached $144.75 billion, a 282% rise over 2020.