A newly released annual report from Ernst & Young, Pulse of the Industry, reveals that publicly traded medtech companies in the US and in Europe turned in a solid performance in 2011, with revenue growth outpacing 2010 rates and delivering a third consecutive year of double-digit net income growth.
Still, the industry will be strongly impacted by the emergence of a new class of medical technologies that are patient-empowering and information-leveraging, including everything from smartphone apps and social media platforms to sensor-enabled smart devices.
Key findings include:
US public medtechs produced positive growth across most financial indicators. Overall US revenues rose 4% in 2011, versus 6% in 2010, and were led by conglomerates that produced a growth rate of 7%.
The combined revenues of US therapeutic device companies reached US$76 billion in 2011, an increase of 5% over the previous year.
As for the results of the other major medtech product segments, imaging led the group with 8% revenue growth in 2011, followed by therapeutic devices, and then non-imaging diagnostics and other, which both increased their top lines by 4%. Only research and other equipment realized a decline, at -6%.
In general, European medtech grew at a higher rate in 2011 than in 2010. European growth also outperformed the US across the majority of financial indicators. European therapeutic device companies increased their cumulative top lines by 9% to US$51.7 billion in 2011, or 84% of all pure-play company revenue.
