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Kalorama Report: Acquisitions Driving Global Medical Device Market
Date:8/14/2014

NEW YORK, Aug. 14, 2014 /PRNewswire/ -- With global device demand limited, companies are acquiring each other to boost revenues and take advantage of distribution synergies, according to Kalorama Information.  The healthcare market research publisher says the $300-billion plus global market for medical devices will grow only in the 3 to 4% range for the next five years, and this has forced companies to be creative. 

The finding was made in the firm's recent report, The Global Market for Medical Devices, 5th Edition, which can be obtained at: http://www.marketresearch.com/redirect.asp?progid=86519&url=http%3A%2F%2Fwww%2Ekaloramainformation%2Ecom%2FGlobal%2DMedical%2DDevices%2D8186981%2F.  

"Combining is the rule as government spending is being curtailed in the US and Europe, and the emerging nations can't replace the revenue fast enough," said Bruce Carlson, Publisher of Kalorama Information.  "The way to growth is to acquire, partner and merge."

The largest example is the recent Medtronic Covidien purchase.  US-based Medtronic said it would purchase Ireland-based Covidien for $42.9 billion last month, combining two of the world's biggest medical device makers and helping Medtronic enjoy tax savings.  Savings with a headquarters change.  Kalorama estimates the deal will come just short of creating the largest device company based on 2013 revenues in its Global Market for Medical Devices, 5th Edition report, released last year.    

There were other acquisitions, according to Kalorama's report.  In May of 2014, Zimmer announced the acquisition of Biomet Inc. for $13.35 billion
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