However, while some firms in the delta phase of the crisis have been still facing the pandemic, the sector as a whole has gotten past it, and several possibilities are emerging that have been enhanced by COVID-19.
In its latest annual study, titled “Pulse of the Industry”, EY assessed the confidence level in the future of MedTech by examining numerous factors. This research illustrates that financial and strategic investors may innovate and increase sales in the future.
Pure-play medtechs last year boosted their expenditure on R&D by 17.2%. The rise in R&D spending continues to recover from the low point of 2017 and takes the rate of growth to the highest level since 2006. During the 2007-08 financial crisis, expenditure growth decreased and stayed low for the next decade.
In the year up to June 2021, M&A activity also increased. In the EY statistics from 2005, the number of M&A agreements concluded throughout the 12 months exceeded any prior time. Compared with some other times, the value of the transfer was reduced due to a relative shortage of megadeals.
The study also reveals that investors maintain a fully stocked pipeline of potential M&A prospects. U.S. and European VC investments reached $9.1 billion over the year up to June 2021. The amount is 34% greater than in the preceding year and in EY records since 2011 than in any prior time.
All of the indicators covered in the study are favourable, given the increase in industry revenues of 6.3% for the fourth straight year of growth and an increase of 128% from the beginning of 2020 to August 2021.
The EY study outlines five important areas in which analysts believe that medical device firms should focus on as they plan for the future. Some of the topics include the accelerated long-term trends of the COVID-19, such as making customer service more focused and making greater use of data and digital technology. More recent developments in other domains are reflected in the need to focus on supply chain resilience and agility, driven by a COVID-19 pandemic.
The Med-Tech World conference, which follows a successful digital event in 2020, will run from 18th-19th November 2021 and will highlight innovations and developments in digital health across the globe. With so many countries realising the potential for exponential growth, Med-Tech World will address the opportunities and challenges driving this multi-million forum – embracing the potential for technological innovation to change the face of medicine in this global sector. Register your interest here!