Gov. Greg Abbott signed an executive order to pause elective surgery in major cities after the state reported more than 5,000 new cases for three consecutive days and broken COVID-19 hospitalization records for two weeks in a row. While this is clearly negative for the medical device industry, Needham & Co.'s Mike Matson says it is unlikely we will see another nationwide suspension of elective procedures. The analyst says we may, however, see "rolling" suspensions in states where COVID-19 cases are surging, such as California, Florida, and Oklahoma.
The med-tech deals are rolling in once again. This week, Tandem Diabetes Care said it will buy Sugarmate, developer of a popular mobile app for people with insulin-requiring diabetes, for an undisclosed sum. The industry also saw one of the biggest deals since COVID-19 first hit the United States with Invitae agreeing to acquire ArcherDx in a deal valued at $1.4 billion. The combined company could be a pivotal force in precision oncology.
Medtech companies are beating the funding odds by raising money despite the ongoing COVID-19 pandemic. This week, Epipole, a Scottish retinal imaging specialist that is preparing its handheld video ophthalmoscope for U.S. market introduction, raised £1.5 million ($1.9 million) in new funding. And in a nearly unprecedented move, employees at Augmedics formed a limited liability company to boost the company's series B round to $15 million in order to commercialize its augmented reality surgical image guidance technology. Other medtech companies that have seen recent funding success include Cue Health, CereVasc, and Bigfoot Biomedical.