Moody’s warns of cybersecurity, antitrust and supplier risks for medical device companies

[Image via Blogtrepreneur on Flickr, per Creative Commons 2.0 license]

Medical device companies face heightened cybersecurity burdens, antitrust enforcement and supplier risks, according to a new report out of Moody’s.

The research firm’s previous quarterly report in February called attention to continued supply chain and labor problems for medtech.

Below are the key highlights for medical device companies from the latest report.

Medical device cybersecurity

The report flagged legislative proposals for new rules and regulations on medical device developers and manufacturers, including new cybsecurity rules.

“The industry is ripe for increased oversight of cyber risks,” the analysts wrote in their report. “We have identified the sector as having a medium high exposure to cyber risk. And our survey of rated healthcare issuers indicates that medical de…

Read more
  • 0

Medtech M&A: The industry’s biggest mergers and acquisitions of 2021

[Image from Jp Valery on Unsplash]Across 2021, medtech has seen a wide range of mergers and acquisitions covering several areas of devices, pharmaceuticals and more.

Some have gone off without a hitch, while others fell into serious scrutiny as mouthwatering financial figures were revealed and major technologies were acquired.

Here are the 10 biggest mergers and acquisitions in medtech in 2021:

Next>
Read more
  • 0

Medtech M&A: The industry’s biggest mergers and acquisitions of 2021

[Image from Jp Valery on Unsplash]

Across 2021, medtech has seen a wide range of mergers and acquisitions covering several areas of devices, pharmaceuticals and more.

Some have gone off without a hitch, while others fell into serious scrutiny as mouthwatering financial figures were revealed and major technologies were acquired.

Here are the 10 biggest mergers and acquisitions in medtech in 2021:

Next>>

Read more
  • 0

MedTech 100 roundup: Industry reaches another high point

The medtech industry is continuing its massive 2021 boom, with the past week marking yet another record in the markets.

MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished last week (Aug. 27) at 121.05 points, representing a 1.2% rise from the 119.63-point mark set a week before. Following a slight dip earlier this month, the industry continues to tick up to new heights.

Medtech’s performance continues to reflect an overall rebound from the struggles brought on by the COVID-19 pandemic, too. The industry remains well above the marks set around the height of the pandemic, having registered a 31.1% increase from the pre-pandemic high of 92.32 (set on Feb. 19, 2020). Moreover, it remains well ahead of the mid-pandemic low of 62.13 (March 23, 2020) as well, totaling a 94.8% ascent above that point.

The industry’s performance fell in line with the overall markets this past week as the S&P 500 I…

Read more
  • 0

EU to investigate Illumina’s decision to close $8B Grail acquisition

The European Commission announced that it opened an investigation to assess Illumina’s (NSDQ:ILMN) recently completed acquisition of Grail.

Last week, Illumina completed its long-awaited, highly-scrutinized acquisition of the cancer detection company that spun out from Illumina nearly five years ago. The $8 billion acquisition was initially announced in September 2020.

Within the announcement of the transaction’s completion, San Diego-based Illumina said that it will hold Grail as a separate company as the European Commission conducts an ongoing regulatory review. A decision from the EU regulators is anticipated after the deal expires, but Illumina has said Grail has no business in Europe, which leads company officials to believe the review is out of the European Commission’s jurisdiction.

A day after the announcement of the acquisition’s completion, the European Commission said in a news release that it would open an investigation to a…

Read more
  • 0

MedTech 100 roundup: On the rise again

After a slight hiccup disrupted weeks of improvement, the medtech industry again flexed its muscles over the last seven days.

MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished last week (Aug. 20) at 119.63 points, representing a 1.5% rise from the 117.92-point tally set a week prior.

The shift marks a quick rebound from the -1.2% dip observed in the previous week and the index now sits at its highest week-ending mark ever, having actually hit an all-time best of 119.72 points on Aug. 17.

Medtech’s performance continues to reflect an overall rebound from the struggles brought on by the COVID-19 pandemic, too. The industry remains well above the marks set around the height of the pandemic, having registered a 29.6% increase from the pre-pandemic high of 92.32 (set on Feb. 19, 2020). Moreover, it remains well ahead of the mid-pandemic low of 62.13 (March 23, 2020) as well, totaling an 92.5% asc…

Read more
  • 0

Illumina completes $8B Grail acquisition, companies remain separate amid European review

Illumina (NSDQ:ILMN) announced that it completed its long-awaited and much-scrutinized acquisition of cancer detection company Grail.

In September 2020, San Diego-based Illumina announced that it entered into an agreement to acquire Grail, a startup that spun out from Illumina nearly five years ago, for cash and stock consideration of $8 billion.

The announcement of the proposed merger was met with heavy scrutiny, with Illumina and Grail agreeing this past spring to postpone the planned purchase until after Sept. 20 while the FTC challenged the deal. The company in March stated that it disagreed with and will oppose the FTC’s challenge to the acquisition. However, in June, a U.S. judge has ruled in favor of an FTC petition to drop its case against the merger.

Illumina said in a news release that it will hold Grail as a separate company as the European Commission conducts an ongoing regulatory review. A decision from the EU regulators is projected after t…

Read more
  • 0

MedTech 100 roundup: Rebound hits a snag

Two weeks ago, medtech was on the rise following a rough stretch, but the past week brought the industry slightly back down to earth.

MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — finished the week (June 4) at 106.96 points, producing a -1.4% dip from the 108.5-point mark set one week prior (May 28). It halts the progress made over a couple of weeks in which the industry produced an uptick, following its 1.4% rise from May 14 to May 21.

Having endured its largest slide of 2021 in recent weeks, the index is still in a better position to produce another upswing after demonstrating signs of picking up again when April brought the industry’s all-time best performance.

Even with setbacks that slowed the industry this past week, medtech’s performance continues to reflect an overall rebound from the struggles brought on by the COVID-19 pandemic, too. The industry has registered a 15.9% rise from the pre…

Read more
  • 0

Report: FTC drops Illumina-Grail court case

A U.S. judge reportedly ruled in favor of an FTC petition to drop its case against the proposed merger between Illumina (NSDQ:ILMN) and Grail.

The Financial Times reported that the ruling allows Brussels to investigate the merger while the deal remains blocked. In April the European Commission’s Directorate-General for Competition announced today that it will review Illumina’s proposed $8 billion acquisition of Grail.

Illumina and Grail agreed this spring to postpone the planned purchase until after Sept. 20 while the FTC challenged the deal. The company in March stated that it disagreed with and will oppose the FTC’s challenge to the acquisition of Grail, a cancer detection startup that spun out from the company four years ago.

According to the FT report, Illumina CEO Francis deSouza claims that the U.S. regulators are employing “time-wasting” maneuvers and that the companies want the FTC to operate with a sense of urgency to get the case to…

Read more
  • 0

MedTech 100 roundup: New heights reached again

One week after recording its all-time best performance, the medtech industry once again topped itself, storming even further ahead.

MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — has been on the rise since April began, with last week’s mark of 112.25 (April 16) representing an all-time best, topping the previous high of 110.96 set on Feb. 15.

Just one week later, the index has already bested itself again, reaching 114.58 to end the week on April 23, marking an increase of 2.1% from the previous week.

The rapid improvement continues to shine a light on the strong position the industry has maintained more than a year on from the height of the COVID-19 pandemic’s impact on medtech. The industry has produced a 24.1% rise from the pre-pandemic high of 92.32 (set on Feb. 19, 2020), plus an 84.4% increase from the mid-pandemic low of 62.13 (March 23, 2020).

The overall markets fared di…

Read more
  • 0

EU to look into Illumina’s proposed acquisition of Grail

The European Commission’s Directorate-General for Competition announced today that it will review Illumina’s proposed $8 billion acquisition of Grail.

The move, covered in media reports, comes weeks after the companies delayed the deal until after Sept. 20 while the U.S. Federal Trade Commission challenges the deal.

Grail is one of several companies competing to develop liquid biopsy tests, which rely on DNA sequencing of blood or other bodily fluids to detect cancer early. Illumina, which previously spun out Grail in 2016, is a provider of DNA sequencing and array-based technologies. Regulators worry that Grail’s competitors in the multi-cancer early detection test space have too much reliance on Illumina technology.

Illumina officials said today that they are sticking by plans to proceed with the deal.

“Reuniting GRAIL and Illumina will allow us to bring Grail’s breakthrough early detection multi-cancer test to patients across the wo…

Read more
  • 0

MedTech 100 roundup: Heading back to previous heights?

Although March brought on tough times for top stocks in the medtech industry, April is already showing signs of a rebound.

The year’s strong start, during which MassDevice‘s MedTech 100 index notched an all-time best of 110.96 points (Feb. 15) came to an end later that month and carried over into March, with the index hitting its lowest recent point on March 8 (102.16), marking a fall at a level not seen since October.

Even after a handful of slight improvements over the month of March, the industry never quite found its footing, ending the month below the 105-point mark.

The first week of April has already presented positive movement, though, with the industry rising to 106.26 points as the week ended on April 2, a 1.3% rise from the 104.87-point mark set the week prior on March 26.

Improvements highlight the secure position the industry has nestled into a year on from the height of the COVID-19 pandemic’s impact on medtech, as the industry…

Read more
  • 0