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Report: Acquisitions Driving Global Medical Device Market

NEW YORK, Aug. 11, 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.

Kalorama's complete report on Global Medical Device Markets has a complete breakdown of 2013 and early 2014 device acquisitions. The report can be obtained at:  

"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 Medtroinic 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.  The acquisition would solidify Zimmer's position as the second-largest orthopedic company in the world.  Stryker Corporation acquired Patient Safety Technologies, Inc., whose proprietary Safety-Sponge® System and SurgiCount 360™ compliance software help prevent Retained Foreign Objects (RFOs) in the operating room, as well as the acquisition of German surgical room equipment maker Berchtold Holding AG, a 90-year-old healthcare equipment company that makes surgical tables, equipment booms and surgical lighting system.  Stryker also acquired MAKO Surgical Corporation.    MAKO pioneered the advancement of robotic assisted surgery in orthopedics.  Among the players active  in 2013 and early 2014 were Boston Scientific, , CareFusion, ThermoFisher Scientific, and The Carlyle Group.

About Kalorama Information -- Kalorama Information, a division of, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog.

Bruce Carlson

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