Mercer Capital’s Medical Technology Industry Newsletter is a biannual publication providing perspective on valuation issues pertinent to Medical Technology professionals. The Medical Technology newsletter highlights the following segments: biotechnology, healthcare technology, healthcare supplies, medical equipment, and life science tools and services. Each issue includes typically includes market overview, mergers and acquisitions review, guideline company pricing, and more.
Excerpting from the discussion:
Overall industry multiples highlight favorable trends and outlook for the sector. As, forward price-to-earnings multiples exceeded 19x across all industry segments. Additionally median revenue growth in the last twelve month period was approximately 6.2%.
Total medtech M&A deal values came to $30 billion in the first half of 2014, an increase of 363% on the $7 billion in the first half of 2013. Despite the growth in deal value, the number of overall deals actually fell by 10% in this period. The increase in 2014 from 2013 was largely due to the major acquisitions of Life Technologies by Thermo-Fisher for $13.6 billion and J&J’s Ortho-Clinical Diagnostics unit by The Carlyle Group for $4.2 billion. The ongoing Medtronic-Covidien and Zimmer-Biomet mergers, though, will dwarf these earlier acquisitions. Worth $42.9 billion and $13.4 billion, respectively as of June 2014, these deals will change the face of the medtech industry.
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