Medical Device and In Vitro Diagnostics/Research Deal Statistics Quarterly, Q1 2010
Highlights from the Q1 2010 review of medical device and in vitro diagnostics/research dealmaking: Medical device financings raised $609 million, the lowest since 2009's opening quarter brought in $521 million. More than half of Q1's total dollars came from VC funding with late-stage rounds garning the most. The largest financing was Mindray Medical's $151 million follow-on offering. Seven private companies involved with biomaterials companies were heavy hitters, together accounting for 14% of Q1 2010's financing dollars. There wasn't much M&A activity with just 10 deals pulling in $1.4 billion, the lowest quarter since Q2 2009's $794 million take, however, four transactions did top the $100 million mark. Financing for the in vitro diagnostics/research segment was also disappointing: only $144 million was raised, less than half of what these industries pulled in during Q4 2009 and was way down from 2009's $522 million opening quarter. Conversely, M&A activity was up. Even without counting Merck KGAA's massive $7 billion-plus takeover of research tools company Millipore Corp., the aggregate of the quarter's seven other M&A's ($729 million) still well exceeded that of the closing quarter of 2009, thanks to multiple deals reaching $100 million or more.
You may also be interested in...
The global market for orthobiologics, comprised primarily of bone replacement materials, reached almost $2 billion in 2009 and is growing at an overall rate of 7%. Medtronic leads in bone replacement with a 45% market share, but overall growth in orthobiologics may come from emerging segments, particular synthetic and stem-cell based technologies.
Baxter International Inc. brought its full and considerable weight to bear to the orthobiologics market by paying handsomely for Apatech Inc., a privately held start-up with a silicate substituted calcium phosphate synthetic bone graft material.
With FDA planning to release guidelines on companion diagnostics by year's end, private sector activity around biomarkers appears ready to accelerate. Pharma companies are taking different strategies to incorporate companion diagnostics into their drug development programs, and experimenting with different applications for co-developed products. The relationship between Pharma and diagnostics companies is evolving, with Pharma leading the way. The pace of dealmaking is picking up, but in negotiating partnerships, both sides are still struggling with how to reconcile their different business models, cost structures, and appetites for risk.