Device Growth to Outpace Pharma Through 2018…But Then What?

medical funding

A recent EvaluateMedTech report from Evaluate Group predicts that medtech (4.5% CAGR) will outperform pharma (3.8% CAGR) between now and 2018 – that’s the good news.

The bad news is that VC investment in the medical device industry dropped 17% in 2013 versus 2012….in 2012, VC investment dropped by 13%. A good analysis is available at FierceMedicalDevices.

What does this mean for industry? Considering the time and financial resources required to develop, conduct clinical trials, and commercialize devices, it means that we will be facing a significant fall-off in device innovation in the coming years…which is not great news for long-term industry growth.

The game has changed for devices in recent years – products must now demonstrate value as well as improve the standard of care…new hurdles that introduce investment risks that early-stage VCs seem to be avoiding. Unless new funding sources can be developed (crowdfunding?) the medical device industry, long considered an innovation leader, may become a laggard. 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s