Digital health and diagnostic efforts continue to dominate med-tech deal-making so far in 2021, while activity focused on medical devices has dropped over the last few years. COVID-19 partnerships also have fallen since last year. Digital health accounts for 43%, the largest portion, of deals this year. About 239 deals are targeting this space, including pandemic efforts. Diagnostic efforts represent about 19%, or 103, of the total deals.
Although it has been a strong year for med-tech financings, they appear to be losing ground. While the first three months of 2021 showed a 67% increase in money raised over the same time frame in 2020, it is now showing that financing values are up by only 15% in comparison to last year.
The history of Medicare coverage of transcatheter aortic valve replacement (TAVR) devices has not lacked for controversy despite the massive positive impact on outcomes. Ashwin Nathan, of Hospital of the University of Pennsylvania, said a new analysis made clear that the expansion of centers qualified to perform TAVR procedures has been nearly all in high population density areas with an existing TAVR program, thus leaving out the still-forgotten rural patient.
Just four months after Blue Water Acquisition Corp. raised $50 million in an IPO, it set out on April 27 to merge with Clarus Therapeutics Inc., the developer of testosterone replacement therapy Jatenzo, valuing the Northbrook, Ill.-based firm at $379 million. Earlier in April, BCTG Acquisition Corp. announced plans to buy Cambridge, Mass.-based targeted precision cancer company Tango Therapeutics Inc. for $353 million, about seven months after completing its $167 million IPO. Both Clarus and Tango are seeking the public markets by merging with a special purpose acquisition company, or SPAC, a method that is becoming increasingly popular and an alternative to the traditional IPO.
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