The annual EY Pulse of the Industry report has been released, and while the findings are not all bad news, it’s clear that the medical device industry ecosystem is changing and requires much more vigilance on the part of patient needs and outcomes, as well as on the development of data-driven and digital technologies. The following are some highlights from the report.
|Good News||Bad News|
|Revenue grew 7% year over year||Annual growth rate hasn’t recovered to growth levels prior to 2008|
|Strong R&D spending||Allocation of capital indicates an emphasis on short-term growth|
|M&A total value rose increased 50%+||Value of average deal dropped|
|“The medical technology industry is strong, but warning signs remain.” – EY|
Areas of Growth
- Robotic surgery market: $6 billion+ invested on new platforms
- Non-imaging diagnostics companies: Revenue growth outpaced that of the wider industry
- Artificial intelligence: Since 2018, FDA has approved 33 algorithms
Challenges & Priorities
- Cybersecurity: Medical device companies must keep device data security a priority, as health data breaches are increasing
- Investment in data-driven value-based care methods
- More closely align business models with customer data requirements
- Development of more flexible and multi-directional supply chains
View the full EY Pulse of the Industry 2019 report.