EY is upbeat about the medical device industry: Here’s why

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The medical device industry is growing, at a healthy and steady pace. This is according to EY’s Pulse of the Industry report, which was released today at AdvaMed’s annual Medtech Conference.

“The results of this year’s report is a direct contrast to last year and tells a positive story about the future of the medtech industry,” said EY partner Arda Ural.

According to EY, the global medical technology (medtech) industry grew by 5% in 2016, a pace last seen before the financial crisis. This strong performance was fueled by mergers and acquisitions (M&A) and portfolio optimization strategies, as well as continued focus on capital efficiency and research and development (R&D) investments.

Overall, revenue from U.S.- and Europe-based medtechs grew to $364.4 billion in 2016 after a 3% decline in the prior year. Meanwhile, net income for these companies rose 17% to $16 billion, compared with a 20% dip to $13.7 billion in 2015. Additionally, total R&D spending by pure-play medtech companies rose 5% to $16 billion in 2016.

Get the full story on our sister site Medical Design & Outsourcing. 

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