According to a new EvaluateMedtech report, despite the gloomy 2013 the medtech industry has had so far, by 2018, the industry can expect to rake in $455 billion. In vitro diagnostics are forecasted to stay on top as the highest earning sector, with global sales over $58 billion, with cardiology and diagnostic imaging following closely behind.
“Within the industry, the leading segment of in vitro diagnostics continues to grow more strongly than the medtech market as a whole, thanks to advances in molecular diagnostics and drugs becoming increasingly linked to diagnostic tests,” Ian Strickland, product manager of EvaluateMedtech and report author, said in a press release.
Highlights from the release:
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- Sales growth in the medtech industry is set to outperform the prescription drug market between 2012 and 2018, with a (compound annual growth rate) of 4.5 percent compared with pharma’s more modest 3.8 percent.
- Of the top medtech companies, Johnson & Johnson is expected to take home the market-leading spot in 2018 with $33.4 billion in worldwide medtech sales.
- Global medtech R&D spending is set to grow by 3.9 percent per year to reach $26.7 billion by 2018; Siemens is seen to be the top R&D spender with its investment in new medtech programs forecast to reach $2 billion by 2018.
- First-time premarket approvals (PMAs) decreased 5 percent to 41 in 2012. So far, the FDA has approved 14 new PMAs in 2013 to the end of August, representing a 42 percent decline over the same period last year.
- M&A deal value fell by a startling 79 percent in the first half of 2013 compared with the same period in 2012. Deal counts dropped 15 percent.
- Venture financing fell 14 percent in 2012 to $3.8 billion but expanded 6 percent in the first half of 2013, reaching $2.5 billion.
The report also predicts that Medtronic (MDT) will maintain the top company in cardiology and that J&J will continue to “dominate” orthopedics.