Berlin / Stuttgart – The medical technology industry, especially in Germany and Europe, is subject to a far-reaching process of change: price pressure, digitization and internationalization as well as the tightening of regulatory requirements pose major challenges for medium-sized medtech companies and lead to a significant acceleration in consolidation. Even if the scope of the Covid-19 pandemic cannot be conclusively assessed at this time, it is to be expected that the financial scope of action available to the affected companies will be restricted in the future. In order to maintain competitiveness through the development of new technologies and business models and to exploit market opportunities, companies will therefore be more dependent on new investors and mergers in the future.
The market study "Medical Technology 2020", which the Luther law firm and the international corporate finance consulting firm Clairfield International are publishing for the second time in cooperation with the Federal Association of Medical Technology eV (BVMed) and the Association of German Mechanical and Plant Engineering eV (VDMA), analyzes the current market development at national and international level as well as the most important trends in the MedTech industry and on the transaction market. It also shows how medium-sized medical technology companies can meet the current challenges. In addition to an in-depth analysis of the available figures and sources, the study is based on a survey of market participants and an analysis of 900 medtech companies. For the first time, the up-and-coming Asian medical technology market will also be examined in more detail.
Main results of the study:
According to the survey, the future competitiveness of the medical technology industry in Germany, which is characterized by medium-sized companies, will depend on two key success factors. When it comes to technical developments, it will be increasingly important to achieve intelligent networking with complementary providers and to digitize products or make them more intelligent through software. “Rapid technological change requires strategic alliances. In this respect, international competitiveness can only be secured through strategic acquisitions or long-term cooperation," emphasizes Dr. Ulrich Philippi, Partner at Luther and expert for M&A transactions in the industry. In order to achieve the growth targets, 46 percent of the participants in our survey stated that they would rely on cooperation in the future, and half of those surveyed plan to meet the increasing demands through acquisitions.
The advantages of digitization are particularly evident in the area of meeting data protection compliance requirements, controlling processes to increase productivity and the increasing number of digital and software-based products. “Digitization is currently the turbo for innovation in medical technology. Manufacturers should now use current changes in the legal framework, such as the Digital Health Care Act, to establish new products in their home market and expand international competitiveness with digital health solutions,” explains attorney Cornelia Yzer, coordinator of the Health Care & Life Science industry group at Luther Rechtsanwaltsgesellschaft. Around 20 percent of the participants in our survey expect sales to increase by more than 10 percent as a result of growing digitization.
The USA is still the largest MedTech market in the world. Characterized by technological influences, the American market is a pioneer in the areas of e-health and artificial intelligence. In addition to the USA, Asia and India have the greatest growth potential. For German companies in particular, the opportunities are great, because medical technology products "Made in Germany" enjoy a high reputation in terms of quality and technological leadership.
Download the study
About Clairfield International
Clairfield International is a leading advisory firm for national and international corporate transactions and financing for medium-sized and small innovative companies. With 440 employees at 32 locations, Clairfield International supports companies in more than 23 countries in Europe, America, India, Asia and Australia. In 2019, the company completed 150 transactions, making it one of the top 10 M&A consultancies for medium-sized transactions worldwide.
About Luther Rechtsanwaltsgesellschaft mbH
With a comprehensive range of services in all economically relevant areas of legal and tax advice, Luther is one of the leading German commercial law firms. The full-service law firm, which was named "Law Firm of the Year 2019" by JUVE, is represented by more than 420 lawyers and tax consultants in ten German business metropolises and has ten foreign offices in important investment locations and financial centers in Europe and Asia. Her clients include large and medium-sized companies as well as the public sector.
Luther has close relationships with commercial law firms in all relevant jurisdictions. In continental Europe, Luther is part of a group of independent law firms that are leaders in their respective countries and have been working together on cross-border mandates for many years.
Luther Rechtsanwaltsgesellschaft mbH pursues an entrepreneurial approach: All consulting services are geared towards the greatest possible economic benefit for the client. The focus is on the development of entrepreneurially sensible and permanently sustainable solutions. All lawyers and tax consultants have an interdisciplinary understanding of the task and have many years of experience in interdisciplinary cooperation.
For more information, please visit: www.luther-lawfirm.com
Source: Press release from Luther Rechtsanwaltsgesellschaft mbH of May 27.05.2020, XNUMX