It was a turbulent year for publicly traded biopharmaceutical companies, but after a lackluster first quarter that saw biopharma equities plunge dramatically, particularly at the beginning of March, there was a gradual recovery over the final three quarters of the year. In order to determine just how well the sector performed on the capital markets, BioWorld examined the fortunes of 516 U.S. biopharma and related stocks.
From nearly every angle, med-tech financings in 2020 are at a four-year high, raising the industry a whopping $59.7 billion, a 47% increase over the prior year. The records were set despite the deadly SARS-CoV-2 virus that shut down global economies throughout 10 months of the most disruptive year in a lifetime. The pandemic highlighted a widespread need for med-tech technologies, such as diagnostics, for which the industry delivered hundreds of options. Likewise, ventilators, personal protective equipment, telemedicine capabilities and wearables were in high demand.
The volume of med-tech deals and M&As in 2020 reached impressive levels, well above 2019, primarily due to the demands of a global pandemic, although the disclosed values of those alliances fell dramatically short. Even so, the spotlight that shined on digital health and diagnostics throughout the challenging year has potentially set up the med-tech industry for an influx of attention going forward.
A decade from now, 2020 likely will be considered a year like no other in terms of the massive amounts of capital raised amid a raging pandemic. Financing transactions of all types smashed records and in terms of volume hit 1,580, a total that was 42% higher than last year.
A decade from now, 2020 likely will be considered a year like no other in terms of the massive amounts of capital raised amid a raging pandemic. Financing transactions of all types smashed records and in terms of volume hit 1,580, a total that was 42% higher than last year despite the serious disruptions to normal business operations.
The amount of money raised by the med-tech industry through public and private financings in 2020 is more than double the amounts seen in 2017 and 2018 and 37% above last year, despite massive global disruptions due to the COVID-19 pandemic.
While med-tech deal values fall significantly short of last year, the 1,240 deals worth $4 billion recorded through November place 2020 above 2018 in terms of value and well above each of the last two years in terms of volume.
Will the digital transformation in health care start to benefit consumers in 2020? That was one of the challenges addressed in a recent report from PwC Health Research Institute titled “Top health industry issues of 2020: Will digital start to show an ROI?” The report predicts that in the next year, health system leaders will tout their investments in technology and transformation.