The stage is set for more dealmaking in the medical device sector, according to Reuters. The pace of acquisitions has quickened, and deals are getting a little larger as companies look for opportunities that can offer an immediate revenue boost.
The value of deals in the medical device industry in the first half of 2010 already surpassed the total for all of last year, when the financial crisis and concerns over the impact of a new U.S. healthcare law gripped the market.
But according to a recent Ernst & Young report, 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 2009. In the coming year, areas such as diagnostics and ophthalmology may be particularly attractive to acquirers, Reuters notes, with Johnson & Johnson, Abbott Laboratories, Baxter International and Medtronic may also be among the ones looking to diversify further.
- get more from Reuters