US medical device industry welcomes | 'earthquake' | Industry consolidation accelerates

Medical Network June 14 hearing the US medical device industry ushered in 'earthquake'. According to media reports, Stryker and rival Boston Scientific Corporation reached an acquisition merger agreement, a new medical device manufacturing giant is about to be born. Boston Scientific's The market value is close to 50 billion U.S. dollars. If the deal is finally reached, it is expected to become the largest M&A transaction in this field in recent years.

At present, Boston Scientific’s attitude towards the acquisition transaction is ambiguous. In the report, Boston Scientific issued a statement saying that it has already learned about the report but declined to comment. However, in the case of Stryker, the company’s executives have indicated to the media. There is M&A interest, saying 'the company has the scale and cash flow needed to make a bigger investment'.

Boston Scientific’s heart equipment product line is technologically advanced. Stryker, founded in 1941, is among the top ten in the world. medical instruments Manufacturer, a global leader in orthopaedics, neurotechnologies and spine surgery. It is reported that the deal will combine Stryker's technology in orthopedic, neurological, and spinal surgery with Boston Scientific's technology in cardiovascular and heart rhythm management. Combine.

On Monday, analysts at Wells Fargo Securities stated in a research report that the two companies have complementary businesses and that there is not a lot of product overlap, and antitrust agencies may not stop the transaction.

As a result of M&A news, Boston Scientific’s share price closed up 7.4% this week with a market value of US$47.4 billion. According to 2017 results, after the merger of the two companies, the new company’s annual revenue will reach US$21.5 billion, and the market value will exceed 1000. Billion U.S. Dollars, has a higher level of strength with Medtronic, the industry leader.

In recent years, it is not just medical equipment, including pharmaceuticals. hospital , health Many large-scale mergers and acquisitions such as insurance and services have forced companies across the industry to find partners to avoid lagging competitors. A report released by consulting firm Ernst & Young reveals that in 2018, the scale of mergers and acquisitions in the healthcare industry will exceed that of last year. 200 billion U.S. dollars. About 60% of executives in pharmaceutical, biotechnology and medical device companies said they plan to seek mergers and acquisitions.

In response, Dan Hoyle, an analyst at Forrester Financial Group in the United States, pointed out that the growth of the medical device industry has slowed and is more difficult to grow than ever before. Faced with changes in industry and regulations, demand for lower medical costs and pressure from investors. , Big companies are seeking to expand the scale and achieve product diversification to reduce the cost of overlap.

Last year for example, BD Medical acquired Bard Medical Technology for US$24 billion. The new company's annual revenue reached US$13.371 billion and became the world's fifth-largest medical device company. In January of the same year, Abbott Laboratories spent US$25 billion to complete. The acquisition of St. Jude Medical achieved a strong alliance in the cardiovascular sector. Since then, the company's business scope has covered almost every major segment of the cardiovascular device market.

The industry’s big brother, Medtronic, is not to be outdone. As early as 2015, Medtronic’s company had a price tag of 42.9 billion U.S. dollars. enterprise Kehui Healthcare's product portfolio covers Medtronic's product areas, which mainly cover diseases such as heart rhythm diseases, spine diseases, and neurosurgery, and has a low coincidence with the Kehui Medical product line. This acquisition is considered as a new expansion of Medtronic's new business. purchase , also brought significant benefits to Medtronic.