US medical devices industry sees a drop of 9.6% in deal activity in February 2020

24 March 2020 (Last Updated March 24th, 2020 15:55)

US medical devices industry sees a drop of 9.6% in deal activity in February 2020

The US medical devices industry saw a drop of 9.6% in overall deal activity during February 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 75 deals worth $984.24m were announced in February 2020, compared to the 12-month average of 83 deals.

Venture financing was the leading category in the month in terms of volume with 53 deals which accounted for 70.7% of all deals.

In second place was M&A with 15 deals, followed by private equity with seven transactions, respectively accounting for 20% and 9.3% of overall deal activity in the country’s medical devices industry during the month.

In terms of value of deals, venture financing was the leading deal category in the US medical devices industry with total deals worth $760.99m, while M&A and private equity deals totalled $146.2m and $77.04m, respectively.

US medical devices industry deals in February 2020: Top deals

The top five medical devices industry deals accounted for 47.8% of the overall value during February 2020.

The combined value of the top five medical devices deals stood at $470m, against the overall value of $984.24m recorded for the month.

The top five medical devices industry deals of February 2020 tracked by GlobalData were:

1) General Catalyst Partners, HBM Healthcare Investments, Khosla Ventures, Lightspeed Management Company and SoftBank Vision Fund’s $165m venture financing of Karius

2) The $125m venture financing of Outset Medical by D1 Capital Partners, Fidelity Management & Research, Partner Fund Management, Perceptive Advisors and T. Rowe Price Group

3) 11.2 Capital, Atomico Ventures, Bessemer Venture Partners, Heuristic Capital Partners Management Co, Insight Partners, Lead Edge Capital Management and Quadrille Capital’s $90m venture financing of Hinge Health

4) The $50m private equity deal with JenaValve Technology by Bain Capital Life Sciences, Andera Partners, Gimv, Legend Capital, NeoMed Management, RMM Capital, Valiance Partners and VI Partners

5) Ligand Pharmaceuticals’ asset transaction with Icagen for $40m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.