In an unceasinglycomplex environment,how can MedTechadapt to thrive?PulseoftheMedTech IndustryReport 2024EYThe better the question.The better the answerBuildingabetterThebetterthe worldworksworking world
ContentsTo our clients and friendsTheyear inreviewTheMedTechlandscape in2024,EY perspectiveTakingonthetop-linechallenae:WherecanMerTechnoto find arowthGuest perspectiveBostonScientific'sgrowthplaybook:M&A,R&D and alobalmarket executionEY perspective MedTech manufacturersstrucale for profitability as input costs rise21GuestperspectiveHow J&JMedTech balances oraanic. arowth with strateaic acauisitionsEYperspectiveTurning MedTech's commercial challenges into true growth opportunities27EYperspectiveThe rise of Al isshifting the MedTechlandscape and where it's going31GuestperspectiveTheroleofAlinMedTech'sfuture:adeendivewithAdvaMer55EYperspectiveSeizingthemoment:MedTech'sopportunity toenterconsumerhealth3Databook4FinancialperformanceFinancingMerger and acquisition(M&A)Acknowledgments55PulseoftheMerTechIndustyReport2024
To our clients and friendsThe 18thannualPulse ofthe MedTechsmaller companies in the secto, which are also batlinIndustry Report finds the medicafor venture capital (VC) amid histor ically low numberstechnology (MedTech) industry stillof funding rounds, an anemic initial public offering (IPOprogressing and growing - but.market andimitedM&Aactivity.These factorstogetherincreasinglv. walking a narrow pathsinalyunableeithertoaccesebetween converging top-line andbottom-line pressures.MedTechrecorded itssixth successive vear of unbrokentop-line growth andis now a USS587 bllion industryIt continues to innovate, with 2023 showing a recordnumberofFDAproduct authorizations.bothpre-markergrowth therapeutic areas andtential of industry innovationughs in artificialintelliaence(ADDespite this continued push outward on the boundaninnovation, the industry is struggling with fundamesecond-quarter earnings in summer 2024, and even thompanies struqgle with increasloodof theindustrvandhealthcareput costs, reimbursement challenges and a shiftinandadaottonewtechnoloaiesanddTechcompanies most importanteevery day. Ithess to employ innovativeJuring the public health emergencyideasthat willroel the successofMedTechproductscompanies and the industry into the future.Jim Welchesincludinaslower-than-anticinatedEYGlobalMedTech Leadercts and procedures in hospitals andErnst&YoungLLPs to reimbursement ratesedfTechinputs-fromenergytoraw materalsJohn Babittisen, whil inflation and broader finandalEYAmercas Mediech TransactionsLeadermpaniesexposed to increasingselling,Ernst&YoungLLPoneralandadministrative(SG&A)exnensesThenetfectisdownward pressureon orofitmarains inaditionArdaUral,PhDto the increasing challenge of sustaining revenue arowthEYAmericasLifeSciencesSectorLeaderPulseoftheMerTechIndustyReport2024
The year in reviewTheMedTechlandscapein2024
TheMed Tech industrv in 2024 faces mounting challenges as it seeks to regain its growth trajectory. While the industry chalked up another vear ofgrowth in 2023, with revenues rising to US$5...
