There was a frenzy of medical device deals in 2011, with some big names entering the fray, including pharmaceutical and device titan Johnson & Johnson. In fact, J&J took the top spot on the list with its $21.3 billion buyout of Synthes. The buy, which is undergoing review by EU authorities, is the largest in the healthcare giant's history and will make it a leader in the orthopedics market.
HT Capital's Clyde Burkhardt noted in MD+DI that there were 414 M&A transactions in the first 10 months of 2011 versus 262 in the same period in 2010. The aggregate value of last year's transactions was about $60 billion versus roughly $49.3 billion a year earlier.
All of these deals come as the medical device sector has been consolidating, Reuters notes. And it looks as if we can expect more deals going into 2012. Smith & Nephew ($SNN) has been eyed as a takeover target, with a price tag of as much as $13 billion.
Burkhardt further pointed out that a number of players are entering the fray--from large to smaller companies, as well as traditional pharma companies. It's a trend that's likely to continue in the coming years.
1. Johnson & Johnson/Synthes