The value of med-tech mergers and acquisitions in the first half of 2022 are at a five-year high and about 84% ahead of last year. The volume of M&As fell significantly in the second quarter, however, with only 104 completed that were worth $46.5 billion, 27.8% less than the first quarter’s value of $64.7 billion. Regardless, M&As in the first half of 2022 are towering over each of the four prior years’ first two quarters, with a total completed of 276 worth $110.9 billion.
Med-tech financings in the second quarter of 2022 rose from last quarter by 26% with a total $8.5 billion raised, the most for a Q2 in all years prior to 2020.
Analysts have warned that the medical device industry is not completely immune from any effects of a potential recession. With fears that a recession is looming, investment firm Needham said companies with capital equipment exposure could be the most vulnerable as hospitals look to repair equipment, instead of replacing it. During the 2008-2009 recession, sales in capital equipment declined for about 12 months, while procedure growth slowed for several years.
Numerous life sciences firms are targeting digital health and diagnostic companies for take-outs and licensing deals, placing the med-tech industry in a strong position in 2022.
RSS
