EY’s M&A Firepower report predicts very active M&A activity for medtechs in 2021, driven by diagnostics and digital health, but with some headwinds remaining.

The annual J.P. Morgan Health Care Conference has come to a close. In Vivo has summarized some of the key themes to appear from 2021’s virtual meeting of industry leaders, investors and technology creators.

Delivering innovation is still the driving force for medtechs intent on growing in the market, regardless of COVID-19, the disruptive effects of which have intensified with the appearance of new variants, says Jefferies Healthcare equity analyst Raj Denhoy.

New drug development is an increasingly communal enterprise. In Vivo examines how one major US academic institution – the University of California at Los Angeles (UCLA) – is expanding its range of research contacts to open new areas of therapy and shorten the transition from bench to the bedside.  Its commercial impact is considerable: over the past two decades, private-sector VC’s have invested more than $2bn in UCLA-backed innovations, with 26 start-ups launched through the university in 2019 alone. Amir Naiberg, UCLA’s point man on technology transfer, explains the factors that have made the university a successful advocate for partnerships that produce results for patients.

In 2020, investors poured millions of dollars into biotech companies searching for new therapeutics that interact with cellular processes involving the destruction and recycling of cellular proteins. These protein degradation-targeted therapies, and molecular glues, have been attracting the attention of big pharma too.

The emergence of multi-cancer blood tests for early detection is captivating investors and driving multi-billion-dollar acquisitions. Companies such as GRAIL, Thrive Earlier Detection and Guardant are predicting revolutionary change in the way cancer is diagnosed and treated. The biggest hurdle, however, may be coaxing health care systems and health insurers to join the revolution.

An interactive look at recent executive-level company changes and promotions in the biopharma, medical device and diagnostics industries.

UK special envoy on antimicrobial resistance Professor Dame Sally Davies, who is also the former chief medical officer for England, talks to In Vivo about the challenges of 2020, the importance of a strong working relationship between the public and private sectors, and reaching a turning point on AMR.

An interactive look at recent executive-level company changes and promotions in the biopharma, medical device and diagnostics industries.

Together, we will improve patient health and experiences while lowering costs across the continuum of care.” This quote, from Andrew Witty, CEO of US health services management company Optum, after the company sealed its acquisition of DaVita Medical Group in 2019, encapsulates the oft-declared goals of vertical integration: efficiencies, improved quality of care, reduced costs. But is this the reality?

Biohaven Pharmaceuticals developed six different value-based contracting options to support the launch of acute migraine therapy, Nurtec ODT. Despite contract complexity and lingering regulatory risk, payers are aggressively pursuing value-based contracts, leading even small biopharmas to invest in strong health economics capabilities.

The turn of the year is a chance to reflect on times past and the future, to make resolutions and look ahead to changes for the better. With Brexit in mind, this is the time to prophesize on UK medtech’s immediate future.

Merck KGaA and Artios penned a global three-year strategic research collaboration to discover and develop multiple precision oncology drugs. The deal could be worth close to $7bn for four-year-old Artios. AstraZeneca announced a definitive agreement to acquire public rare disease drug developer Alexion for approximately $39bn. This was 2020’s largest M&A. Financing reached $28bn in biopharma, $879m in device, and $2.4bn in diagnostics.

The COVID-19 pandemic is serving as a catalyst to draw attention to other destructive infectious diseases that continue to ravage communities across the world. This is to be welcomed, but we must also ask what we have learnt from our recent experiences that can be deployed to help accelerate approaches to fighting other, similarly devastating, established and emerging infectious diseases.

This month’s column covers deals announced in November 2020. Data provided by Biomedtracker.