Our quarterly review of the medtech sector provides an in-depth analysis of M&A and venture investments, showcasing the sector’s biggest deals. Johnson & Johnson led with a $13.1 billion acquisition of Shockwave Medical, enhancing its portfolio in calcified cardiovascular disease treatment. Boston Scientific followed by acquiring Silk Road Medical for $1.3 billion, focusing on stroke prevention technologies. Nordson’s $815 million acquisition of Atrion Corporation expanded its capabilities in structural heart, ENT, and GI procedures, while GTCR took Surmodics private in a deal valued at $627 million, targeting advancements in drug-delivery coatings and medical devices. Alcon’s acquisition of BELKIN Vision, initially valued at up to $335 million, emphasized its commitment to innovative glaucoma treatments, later adjusting to $81 million upfront with potential sales milestones.
In the venture capital space, Tether made a significant $200 million investment in Blackrock Neurotech, advancing brain-computer interface (BCI) technologies for neurological disorders. InSightec raised $150 million to further its FDA-approved focused ultrasound treatment for essential tremor and Parkinson’s disease. Talkiatry secured $130 million to expand its psychiatric care model, aiming to reduce healthcare costs and improve outcomes. Transcarent’s $126 million series D round, bringing its valuation to $2.2 billion, will drive the integration of medical, surgical, pharmacy, and mental health services on a unified platform. Lastly, Kardium’s $104 million funding round will propel the commercial launch of its Globe Mapping and Ablation System, a breakthrough in atrial fibrillation treatment.
MedTech, Device, Digital Health, Wearables M&A
During H1 2024, the medtech, device, digital health, and wearables sector experienced significant M&As. Q2 alone saw 15 totaling $16.3 billion ($15.9 billion excluding contingents), a sharp rise from Q1’s 12 worth $200 million. Overall, H1 2024 recorded 27 deals, amassing $16.5 billion in M&A value, or $16.1 billion excluding contingents.
MedTech, Device, Digital Health, Wearables Ventures
During H1 2024, the medtech, device, digital health, and wearables sector experienced strong venture motion, with Q2 alone seeing 77 funding rounds raising $2.2 billion, a notable increase from Q1’s 60 rounds, which raised $1.8 billion. Overall, the sector recorded 137 funding rounds in H1, totaling $4.0 billion.
MedTech, Device, Digital Health, Therapeutics, and Wearables – Average Venture Rounds by Series
In 2024, medtech, devices, digital health therapeutics, and wearables saw a rise in average venture funding compared to 2023. Series-A increased to $25 million, up from $16 million, while series-B rose to $36 million from $32 million. Series-C rounds saw a slight uptick to $50 million, compared to $48 million last year. Series-D remained stable, with a decrease to $67 million from $68 million in 2023.
Top 5 MedTech M&A’s in Q2 2024
Johnson & Johnson acquired Shockwave Medical – April 2024
Johnson & Johnson acquired Shockwave Medical for $13.1 billion. Shockwave, specializing in medical devices for treating calcified cardiovascular diseases, will continue operating as a business unit within Johnson & Johnson MedTech. Shockwave shareholders received $335 per share in cash, representing a 4.7% premium. The acquisition was finalized on May 31, 2024.
Boston Scientific acquired Silk Road Medical – June 2024
Boston Scientific acquired Silk Road Medical for approximately $1.3 billion. Silk Road Medical, known for its stroke prevention devices, including the Enroute transcarotid neuroprotection system and stent system, provided shareholders with $27.5 per share in cash, reflecting a 27% premium.
Nordson acquired Atrion Corporation – May 2024
Nordson acquired Atrion Corporation for $815 million. Atrion’s key products include myocardial protection systems and technologies for structural heart, ENT, and GI procedures. Atrion shareholders received $460 per share in cash, with a 15% premium over the 90-day average, despite a negative one-day premium.
GTCR acquired Surmodics – May 2024
GTCR announced its acquisition of Surmodics to take the company private. Surmodics, known for drug-delivery coatings, medical devices, and diagnostic components, was valued at up to $627 million. Shareholders received $43 per share in cash, representing a 23% premium over the one-day price and a 41.1% premium over the 30-day VWAP.
Alcon acquired BELKIN – May 2024
Alcon completed its acquisition of BELKIN Vision, a company specializing in glaucoma treatment technology, in July 2024. Initially valued at up to $335 million, the agreement was amended, with BELKIN receiving $81 million upfront, including $65 million in cash, and eligibility for up to $385 million in sales-based milestones.
Top 5 MedTech Venture Investments in Q2 2024
Blackrock Neurotech – April 2024
Tether, through its venture division Tether Evo, made a $200 million strategic investment in Blackrock Neurotech, securing a majority stake. Blackrock Neurotech specializes in neurotechnology, particularly brain-computer interfaces (BCIs) used to help patients with paralysis and neurological disorders regain control over digital devices and physical movements. The funds will support the commercialization and R&D efforts to advance their NeuroPort Array system.
InSightec – June 2024
InSightec, a global leader in focused ultrasound technology, raised $150 million in equity financing led by Fidelity Management & Research Company, with participation from Nexus Neurotech Ventures and Ally Bridge Group. The company’s Exablate Prime platform, which uses MRI-guided ultrasound for treating essential tremor and Parkinson’s disease, is FDA-approved and has been deployed in over 160 systems worldwide, treating nearly 20,000 patients.
Talkiatry – June 2024
Talkiatry secured $130 million in a series C equity and debt financing round, led by Andreessen Horowitz (a16z) with Perceptive Advisors participating in the equity portion and Banc of California providing the debt financing. The investment will support Talkiatry’s expansion of its value-based psychiatric care model, which aims to lower healthcare costs, improve patient outcomes, and create savings for various stakeholders. With this round, Talkiatry’s total funding reached $245 million.
Transcarent – May 2024
Transcarent raised $126 million in a series D round led by General Catalyst and 7wireVentures, bringing its total funding to approximately $450 million with a valuation of $2.2 billion. New investors Geodesic Capital and Memorial Hermann Health System joined previous backers, including Threshold Ventures and Leaps by Bayer. The funds will enhance Transcarent’s AI capabilities and support its growth in providing a comprehensive health platform that integrates medical, surgical, pharmacy, and mental health services.
Kardium – June 2024
Kardium Inc. raised $104 million in a financing round led by Fidelity Management & Research Company, along with T. Rowe Price and Durable Capital Partners. The funds will be used to complete clinical studies, obtain regulatory approvals, and prepare for the commercial launch of its Globe Mapping and Ablation System, designed for treating atrial fibrillation. Clinical data showed the system achieved over 80% freedom from atrial arrhythmia at one year in patients.
