The medical device industry is full of new trends, as 2020 has forced almost every sector of the economy to take a hard look at its practices and products, and reevaluate priorities. Global stock markets slowed down tremendously in Q1 2020, forcing companies to focus on developing novel products that either help patients maintain or regain their health amidst COVID-19, or help people navigate a brand new work environment centered around remote meetings and cloud-based project management.
For the medical device industry, the shift in business meant a greater reliance on private equity deals. In Q2 2020, these deals totaled $1.68 billion worldwide. When broken down by region, the U.S. was responsible for $0.39 billion of the total amount, Europe saw $0.56 billion, and the Asia-Pacific region had $0.73 billion. The remaining deals took place in the Middle East and Africa. China had the highest monetary volume of deals than any other single country, at $722.6 million.
North America was the leader in number of deals, at 25 (23 of which came out of the U.S.), while Europe saw 11 deals, Asia-Pacific had 9, and the Middle East and Africa had 1. The $1.68 billion value is a 94.7% increase over the last quarter, and an 81.6% increase over the previous four-quarter average, which came in at $922.8 million.
The overall medical device industry deals were worth $8.51 billion in Q2 2020. This was actually a decrease of 52.9% over Q1 2020, and off 44.4% compared with the previous 4-quarter average of $15.34 billion. The number of deals, however saw a modest increase of 3.8% over the last four quarters, with 438 as opposed to the previous 422. North America led the global activity for overall deals in the medical device industry as well, leading also in terms of value with a $4.72 billion total worth.
Top five private equity deals in the medical device industry included: Beijing Strong Biotechnologies and Sinopharm Group’s Beijing Strong Biotechnologies and Sinopharm Group’s $367.87 million deal with Fuzhou Maixin Biotechnology Development; The Blackstone Group’s $337 million private equity deal with Medtronic; Hillhouse Capital Group and Temasek Fullerton Alpha Pte.’s $154.52 million deal with Shanghai Kinetic Medical; Durable Capital Partners’ $135.89 million deal with Abcam; and Friend Capital, Guangzhou Boyi Architectural Design Institute, Meinian Onehealth Healthcare GroupLtd , New Alliance Capital, Red Horse Investment Group, Sinopec Capital and Xin Ding Capital’s $112.98 million private equity deal with CapitalBio.