Qmed Staff

February 1, 2016

1 Min Read
Abbott and Stryker Announce Billion-Dollar Mergers in Early February

       

Mergers & Aquisition
 

2015 was the biggest year on record for mergers and acquisitions in the medical device sector, and this year could end up looking similar.

Qmed Staff

While $50-billion acquisitions like Medtronic's purchase of Covidien are rare, many of the factors propelling M&A activity medtech last year are present at the beginning of 2016. February kicked off with a trio of significant M&As being announced by Abbott, Stryker, and Medtronic.

One of the biggest factors driving M&As is the dwindling margins of U.S. hospitals, which are leading many hospital administrators to look for cost savings from medical device companies. This is an environment that favors bigger entities that can leverage economies of scale. "As long as you see consolidation on the side of the providers and consolidation on the side of the insurers, you're going to see consolidation on the side of medtech," Debbie Wang, a Morningstar analyst following the medical device industry, told Qmed. (Download our free report: Medtech Mergers & Acquisitions of 2015)

February Acquisitions

Learn more about cutting-edge medical devices at MD&M West, February 9-11 at the Anaheim Convention Center in Anaheim, CA. 

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