by Thomas Dworetzky
, Contributing Reporter | April 14, 2015
European medical device sector investments are on the rise, according to a new survey.
Technologies that drive cost efficiency are especially hot, according to a new report from Frost & Sullivan. Cuts to reimbursements as well as health care costs are partially driving the trends, it revealed.
That said, investors are shifting from early-stage to late-stage startups as failure rates and investments rise and exit options drop.
It’s much more than if they fit or not, it’s about using quality parts and clinical accessories specifically designed for your equipment and proven through rigorous testing. Because when patient care is a part of the equation, every detail matters.
"Mergers and acquisitions (M&As) will be the primary exit options for companies in the European medical device sector," said Frost & Sullivan Senior Financial Analyst Saneesh Edacherian.
U.S. buyers to M&As in Europe are also expected to increase, stated the report.
The report suggested that pricing pressures and lower returns on in-house R&D will force major participants in the European medical device industry to look for strategic acquisitions to boost therapeutic pipelines.
"This trend is primarily a result of reducing margins, regulatory uncertainty, and depleting pipelines that force top pharmaceutical enterprises to look for diversification in the European market," said Edacherian.