Medical devices got a taste of an IPO market last year that's long been wide open for biotech. That came at the same time that the acquisition appetite for venture-backed device companies held strong. But there's a backlog of device portfolio companies that VCs need to get off their books before they can have any greater appetite for the device category.
Venture capital investment in the U.S. jumped to $59 billion last year--almost twice what it was a scant 5 years ago, according to the latest annual healthcare report from Silicon Valley Bank. But medical devices are capturing an ever-shrinking portion of all that largesse for innovation--down to a mere 4% of that VC total for last year or $2.4 billion, which is roughly right where it was in 2014.
Med tech has been the single hardest place to invest in the entire universe of venture capital-backed industries, said New Enterprises Associates partner Justin Klein during an insightful speech delivered last year at the Maryland Entrepreneurship expo in Baltimore.
Illumina makes waves in China with NGS clinical testing deal; LabCorp buys women's health lab to boost offerings
In this week's Dx Digest, Illumina struck a deal to expand its presence in China, Hologic snagged a CE mark for its test for a common but oft-misdiagnosed sexually transmitted infection, and diagnostics giant LabCorp snatched up medical testing unit Pathology to get its hands on the company's molecular and digital pathology services.
The success of Intuitive Surgical's da Vinci robot for minimally invasive surgery is creating a growing list of "fast followers," but the company believes it has created enough "moats" to fend them off for quite some time, according to Leerink equity analyst Richard Newitter.
FierceMedicalDevices talked one-on-one with Philips chairman and CEO Frans van Houten about what he's done with the HealthTech revamp so far and his expectations for the company--as well as for the healthcare industry itself--moving forward.
It was a triumphant Anne Wojcicki who took the stage at this year's TEDMED conference in Palm Springs, CA. She's had a great year--gaining the first FDA clearance for a direct-to-consumer genetic test earlier this year and recently relaunching a broad consumer test that includes more than 60 points of genetic information including disease carrier status, wellness and disease trait.
Dx Digest: Invitae builds out cancer and epilepsy testing menus; Illumina gets in on autism research
Welcome to Dx Digest, where FierceMedicalDevices highlights the highs and sometimes lows of the past week in the diagnostics industry. Invitae expanded its hereditary cancer and epilepsy test menu; sequencing giant Illumina announced that it would join forces with the Hartwell Foundation's Hartwell Autism Research and Technology Initiative to build the largest shared genomic database for autism; and Thermo Fisher Scientific gained more traction in the companion diagnostics realm.
Johnson & Johnson is shaking up its med tech innovation model. Its sprawling medical device unit had a quarterly operational sales increase of just 1.3% to $6.1 billion when adjusting for divestitures and foreign currency fluctuations. Add a negative currency impact to the equation, and the growth rate was -7.3%.
Dx Digest: Roche notches molecular diagnostics sales win; Veracyte CEO lambastes CMS pricing proposals
In this week's Dx Digest, Roche scored FDA approval for its viral load tests and cobas 6800/8800 testing systems and posted stellar sales for its molecular diagnostics unit. Sequenom struck another liquid biopsy clinical research deal. And more.