While the big boys in the medical device sector are weathering the recessionary storm, the innovative medical device start-ups have struggled with adverse finanical conditions according to a report released today by Ernst and Young. US and European medical technology companies saw total industry financing drop by 38% in 2008. The US has been particularly badly hit.
The big players are performing well, but their new life blood, the types of tiny companies producing compelling device innovations that they acquire in order to keep growing, are struggling. Mergers and acquisitions, usually the only way these companies can make a return for their investors, showed a strong decline in 2008, down 41 % from the previous year.
A sobering thought for an industry which in the US particularly is facing new goverment reform and taxation threats.
However, there is reason to be positive; medical advance will always be needed, and the Ernst and Young report does highlight some key regions for medical device technology that are still thriving; California, Massachusetts and Minnessota are major hubs for medical device innovation, with strong support from a population of skilled scientists, access to capital, and a robust network of support institutions such as hospitals and universities.
No comments:
Post a Comment