IPOs top the list of the big stories in 2025 in med tech. Thirty med-tech companies went public, raising nearly $12 billion, two orders of magnitude more than in 2023 and almost 20 times more than raised in 2024.

It’s been a year of two halves in Europe, with early optimism that the biotech sector had recovered from the post-pandemic funding drought being crushed by an investment slowdown from June onward.

The U.S. Centers for Medicare & Medicaid Services announced that several Medicare administrative contractors have formally withdrawn local coverage determinations for skin substitutes. There are questions, however, as to whether this will bring an end to excess spending on these products even though the agency has capped the rate paid for entire classes of products.

The level of investment in Europe’s med-tech sector in 2025 did not materialize as many had hoped at the beginning of the year. Reciprocal tariffs introduced by the U.S. government created an uncertain macroeconomic environment, curtailing dealmaking and slowing financing activity. Nevertheless, amid uncertainty, there were some bright spots as medical devices remain essential, and investors know how to navigate market cycles.

After an all-night negotiating session that concluded after 5 am on Dec. 12, political agreement was finally reached on the long-awaited EU pharmaceutical legislation. The aim of the new rules is to improve patient access and increase the competitiveness of the sector, but for the industry, it was too little too late in terms of the incentives, and potentially damaging in the measures to improve access.

The EU’s Medical Device Coordination Group (MDCG) posted two guidances in the waning weeks of 2025, one of which deals with postmarket surveillance for both devices and diagnostics. Another guidance deals with breakthrough devices (BtX) and diagnostics, a question that is not well described in either of the current EU regulatory frameworks.

Payers had their hands full in 2025 dealing with the raft of medical technologies that came through the globe’s regulatory review processes, although the nature of many of those challenges were conventional. On the other hand, payers struggled to keep pace with both the volume of conventional devices and the novelty of AI-driven devices in 2025, a problem that will carry over into the coming year.

Jacobio Pharmaceuticals Group Co. Ltd. is outlicensing its phase I pan-KRAS inhibitor, JAB-23E73, to Astrazeneca plc in a global deal worth up to $1.915 billion that gives Astrazeneca global rights to the compound outside of China, and the two companies will jointly develop and commercialize the asset in China.

The long-running dispute over rebates on sales of drugs that the pharma industry must pay to the U.K. government took a turn for the worse at the start of 2025, when it transpired that the rate would be going up from 15.3% to 22.9%. The row continued for most of the rest of the year before a truce of sorts was called in December.

Jacobio Pharmaceuticals Group Co. Ltd. is outlicensing its phase I pan-KRAS inhibitor, JAB-23E73, to Astrazeneca plc in a global deal worth up to $1.915 billion that gives Astrazeneca global rights to the compound outside of China, and the two companies will jointly develop and commercialize the asset in China.