According to an online Reuters analysis published on Friday, increased M&A activity in the medical device industry is expected in the coming months. In fact, a recent Ernst & Young report reveals that the value of deals in the medical device industry in the first half of 2010 already surpassed the total for all of 2009. The report notes that 89 deals valued at $16.9 billion were struck in the U.S. and Europe in the first half of 2010, compared with 172 transactions worth $15.7 billion in all of 2009.
The Reuters analysis notes that medical device companies are expected to be targeting acquisitions in the ophthalmology and diagnostics space in particular, with the goal of immediately increasing their revenues amid economic challenges. Medtronic, Abbott Laboratories, Baxter International and Johnson & Johnson are among the firms reporter Susan Kelly mentions may be looking to diversify further.
McGuireWoods hosted the 2nd Annual Medical Device, Durable Medical Equipment & Diagnostics Conference in Chicago on November 3rd. Investors and industry participants addressed a variety of business and legal issues facing these sectors and examined core areas of potential activity. In future blog posts, we will discuss several of the concepts that emerged from the conference.