1. In Vivo
  2. >>Market Intelligence

Device/Diagnostics Quarterly Deal Statistics, Q3 2016

A look at financing, M&A and alliance activity July–September 2016

 
• By Amanda Micklus and Maureen Riordan

Q3 medtech financing doubled in dollar volume to $3 billion, with debt offerings again representing the majority of the aggregate; acquisitions totaled $5.3 billion, mainly due to Johnson & Johnson’s $4.3 billion buy of Abbott Medical Optics. Diagnostics financings, which brought in $85 million, continued to decline, but at $5 billion, acquisitions showed a slight increase over the previous quarter, with Danaher’s takeover of Cepheid accounting for most of the M&A volume.

IV1610_Calendar_1200X675

Financing by device companies during the third quarter of 2016 totaled $3 billion, doubling Q2's $1.5 billion. As in the past two quarters, debt offerings continue to make up the highest percentage of the financing dollars at 72% in Q3. (See Exhibit 1.) Most of the $2.2 billion in Q3 debt dollars are attributed to the outlier $1.75 billion sale of 9.625% second lien senior secured notes due 2021 by Acelity LP Inc.’s wound care and regenerative medicine subsidiaries Kinetic Concepts Inc. and KCI USA Inc. [See Deal]; this single transaction accounted for 57% of Q3’s total dollar volume and is also the largest-know debt raise by a medtech company since Strategic Transactions started tracking this activity in 1991. Acelity says the proceeds will repay existing debt. (The company also offered $400 million principal amount of first lien senior secure notes in February 2016 [See Deal].)

Open Media

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Market Intelligence

Tackling Fraud In The UK: Pharma, Are You Ready?

 
• By Trevor Francis

UK pharma faces a critical turning point as the Economic Crime and Corporate Transparency Act introduces the "Failure to Prevent Fraud" offense in September 2025, requiring companies to transform their approach to fraud prevention or face severe consequences.

Finding The Fire: AltruBio’s Novel Approach To Autoimmune Disease

 
• By David Wild

CEO Judy Chou brings big pharma experience to tackle chronic inflammation with the company's first-in-class PSGL-1 targeting therapy.

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By David Wild

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

UK Bets On Regulatory Innovation As Competitive Advantage In Synthetic Biology

 
• By David Wild

The UK government has prioritized synthetic biology and created a "concierge service" for biotechs just as the US cuts science funding.

More from In Vivo

AI In Health Delivery: Patients Most Confident When HCPs Are In Charge

 
• By Ashley Yeo

Annual survey of patients and professionals shows how attitudes to health system transformation are evolving and what stakeholders are demanding as acceptance of AI tools accelerates.

Medtech Innovators Court London-Based Investors At BioWales 2025

 
• By Ashley Yeo

BioWales in London 2025 showcased the efforts healthtech innovators are making to meet investors on their own turf, illustrating changing attitudes and evolving needs.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By David Wild

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.