Medical Supplies Deals Haven't Slowed Since Obamacare
July 22, 2013
It doesn't appear that PE activity in the medical supplies and devices industry has dropped off since the passage of the Patient Protection and Affordable Care Act in March 2010. In fact, investment increased slightly in 2011 (from 58 deals in 2010 to 61). However, with the new medical device tax, which could reduce revenue for medical device manufacturers, having gone into effect this year, it remains yet to be seen whether or not this trend will hold.
According to the PitchBook Platform, private equity firms have backed 192 U.S.-based companies in the industry since the beginning of 2010. A third of the deals during the time period involved companies focused on the medical supplies market, 21% involved companies focused on therapeutic devices and another 15% involved companies focused on diagnostic equipment. California and Massachusetts, the two most active states, together were home to more than 27% of all the deal activity in the time frame.