TMCnet News
Global medtech industry sees strong growth despite disruption caused by COVID-19 and now focuses on a resilient futureNEW YORK, Sept. 27, 2021 /PRNewswire/ --
The global medical technology (medtech) industry has significantly rebounded after COVID-19 hurt top-line growth rates, as detailed in the 15th annual Pulse of the Industry report produced by Ernst & Young LLP (EY US). Just over 18 months after COVID-19 was declared a pandemic, the data shows that the medtech industry has weathered this crisis and entered a period of recovery and renewal, as evidenced by the M&A activity, improved revenues, strong and confident investor sentiment, and VC and IPO funding. Arda Ural, PhD, EY Americas Industry Markets Leader, Health Sciences and Wellness, says, "While COVID-19's impact was felt throughout the medtech industry, many companies are resiliently emerging from the crisis. Medtech is experiencing unprecedented venture capital levels, robust deal volume and a strong growth rate. If executives continue focusing on innovating new products and services, trying digital business models, optimizing their portfolio composition and mitigating supply chain disruptions in the wake of this global disruption, we can anticipate a continued strong trajectory for the industry." Pulse of the Industry captures the current state of the medtech idustry, as expressed in M&A and deal activity, R&D investment and other factors. The report also outlines the following five key areas of focus for medtech companies that will help prioritize future growth and drive business transformation:
Jim Welch, EY Global Medtech Leader, says, "Medtechs must focus on these key issues to pursue a successful future, not just for the business itself, but the patients they serve. The industry has proved to be resilient, and this in turn has allowed for incredible technological breakthroughs and improved care delivery. To not only sustain momentum, but also drive further business value, executives should prioritize these efforts within their enterprise." As detailed in the report, medtech significantly evolved its business models during the pandemic, and it must continue to focus on growth and transformation to stay relevant. As an example, compelled by pandemic lockdowns, medtechs explored new approaches to delivering care, reaching into patients' homes to deliver therapeutics, diagnostics and other tools. Data suggests that, in the future, digital health will play a greater role in managing conditions from diabetes to mental health for up to 45% of the US patient population; medtech, integrating with telehealth, has the potential to meet this growing need. Supply chains and data security represent other innovation opportunities for the sector. The pandemic disruption has highlighted the need to ensure greater supply chain resilience in the future. At present, medtech supply chains operate in an asset–heavy business model and hold a significant amount of redundant inventory. Leaders should explore downsizing inventory, improving forecasting and building smarter, more agile supply chain models. Flows of data, as well as products, will be vital to health care in the future, and medtech can play an important role in sharing patient data if companies can secure devices against cyber attacks and privacy breaches. Data security will be a necessary foundation for the new medtech ecosystem. Other key findings highlighted include:
To read Pulse of the Industry, visit ey.com/pulse. -###- Notes to editors About EY EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com. About EY Health Sciences and Wellness The rise of the empowered consumer, coupled with technology advancements and the emergence of digitally focused entrants, is changing every aspect of health and care delivery. To retain relevancy in today's digitally focused, data-infused ecosystem, all participants in health care today must rethink their business practices, including capital strategy, partnering and the creation of patient-centric operating models. The EY Health Sciences and Wellness architecture brings together a worldwide network of 34,000 professionals to build data-centric approaches to customer engagement and improved outcomes. We help our clients deliver on their strategic goals; design optimized operating models; and form the right partnerships so they may thrive today and succeed in the health systems of tomorrow. We work across the ecosystem to understand the implications of today's trends, proactively finding solutions to business issues and to seize the upside of disruption in this transformative age. View original content to download multimedia:https://www.prnewswire.com/news-releases/global-medtech-industry-sees-strong-growth-despite-disruption-caused-by-covid-19-and-now-focuses-on-a-resilient-future-301384090.html SOURCE EY |