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Investments In The Medical Equipment Market Plummet In 2009

March 6th, 2010 by sandhya Leave a reply »

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Bharatbook added a new report on “Medical Equipment Annual Deals Analysis 2010″ which gives in-detailed analysis on medical equipment market.
Medical Equipment Annual Deals Analysis 2010

This report is an essential source of data and trend analysis on mergers and acquisitions (M&A) and financing in the medical equipment market. The report provides detailed information on M&A, equity/debt offerings, private equity (PE), venture financing and partnership transactions registered in the medical equipment industry in 2009. The report includes detailed comparative data on the number of deals and their value in the last four quarters, subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top PE, venture capital (VC), and advisory firms in the medical equipment industry.

Decreased Investments In The Medical Equipment Industry In 2009
Global investments in the medical equipment declined by 15%, registering $73.8 billion in 2009 compared to $86.9 billion in 2008. The decrease in investments can primarily be attributed to the concentration of medical equipment companies on organic growth opportunities because of the uncertain economic outlook. Growing economic concern also led to a decrease in investments in 2009, after high business consolidation activity in 2008. The first quarter of 2009 garnered the most investments, reporting $24.9 billion in spite of the economic uncertainty. Further, the number of medical equipment deals increased from 1,675 deals in 2008 to 1,790 deals in 2009. The industry witnessed a compound annual growth rate (CAGR) of 11.1% in the number of deals from 2005 to 2009.

Mergers & Acquisitions In The Medical Equipment Decreased By 57% In 2009
M&A including asset transactions in the medical equipment industry witnessed a decrease of 57% in the deal value, reporting $18.7 billion in 2009 compared to $43.1 billion in 2008. This signifies that most companies are taking a skeptical approach to the business integration process due to the uncertain market conditions, after high consolidation activity in 2008. Abbott Laboratories’ $2.8 billion acquisition of Advanced Medical Optics and Agilent Technologies’ $1.5 billion acquisition of Varian are the two largest deals of the year. Further, the number of deals decreased from 528 deals in 2008 to 487 deals in 2009. M&A activity was dominant in the in vitro diagnostics segment, registering 88 deals worth $6.6 billion, followed by the healthcare IT segment with 79 deals worth $905 million in 2009.

Financing Activity Surged Through Debt Offerings In 2009
Debt offerings, including secondary offerings and private debt placements, were the most prominent among all financing activities in the medical equipment market, with around $39.8 billion raised in 2009 compared to $20.8 billion in 2008. Further, the number of deals also increased, reporting 114 deals in 2009 compared to 89 deals in 2008. The in vitro diagnostics market segment was the lead runner, reporting $17.7 billion from 38 deals in 2009. Public debt offerings contributed the most to the deal value, with $31.5 billion reported in 2009 compared to $15 billion in 2008, driven by flourishing first quarter investments in 2009 with several big ticket deals: Novartis’ offering of notes and bonds for $5 billion; Abbott Laboratories’ $3 billion public offering of notes; Eli Lilly’s public offering of notes for $2 billion; and Bayer’s $1.7 billion public offering of notes.

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