Though the volume and value of acquisitions in the medical device space fell sharply year over year, there are signs that activity could pick up during the second half of the year.
Medical device deals in the second quarter of 2013 were down significantly from a year before, with the number of deals falling by more than half and deal value dropping by nearly two-thirds from Q2 2012, according to a new report from PwC.
There were also three fewer medical device deals than in the first quarter of the year, though deal value remained constant quarter over quarter. Deal volume and value also decreased sharply in the biotech and diagnostics segments.
But there could be light at the end of the tunnel, according to the report.
Looking forward, transaction activity in each of these sectors is expected to increase as acquirers continue to tap financing alternatives, despite a pullback in the debt markets from recently high levels. As noted later in this report, several large transactions were announced in the second quarter across sectors. These transactions, which are expected to close later in 2013 or 2014, indicate that acquirers remain active and that deal activity will likely return to historic levels in the coming quarters."
PwC cited "readily available financing, strong corporate balance sheets and cash levels, and strong equity markets” as reasons to be optimistic that acquisitions will improve during the second half of the year.
[image courtesy of ADAMR/FREEDIGITALPHOTOS.NET]