Massachusetts Medical Device Sector Ranked 2nd Largest in Nation
Study Also Reveals Massachusetts #1 in Venture Funding Raised per Capita
BOSTON (May 5, 2009) – Massachusetts has maintained its standing as one of the largest medical device clusters in the country, ranking second only to California, with 39 publicly traded medtech companies located in the Bay State, according to a new study by Ernst & Young. The study also shows that theMassachusetts medical device sector is theU.S. leader in venture funding raised per capita from 2000 to 2008.
Ernst & Young’s 2009 “Pulse of the Industry” study updates the findings of a similar assessment done in 2008. The 2008 study also reported that the Mass. sector was second to California, with 40 publicly traded medtech companies. That study also found that Massachusetts led the U.S. in total capital raised (just under $3.9 billion in 2007).
“Our analysis clearly demonstrates that the Massachusetts Medical Device Industry has only strengthened its standing as a leading industry cluster in the country,” said Richard Ramko, Ernst & Young’s U.S. Medical Technology Leader. “Despite economic pressures bringing hospitals less revenue and increased cost, the varied nature of the medical device industry as a whole—from venture-backed startups to global conglomerates—will allow it to remain relatively stable,” Ramko added.
According to the study, which was presented at the MassMEDIC (Massachusetts Medical Device Industry Council) annual conference today, the US medtech industry experienced its most challenging IPO market since 2003 and witnessed the lowest merger and acquisition activity since pre-2006, with the majority of the decline occurring in the second half of 2008.
“In today’s economic climate, it is reassuring to see that the Massachusetts medtech sector has retained its leading status in the nation,” said Tom Sommer, president of MassMEDIC. “These findings point to a future rebound of the medical device industry as a whole, and are a testament to the industry’s ongoing growth here inMassachusetts,” Sommer added.
More than 300 medical device companies attended today’s annual MassMEDIC conference as the organization representing over 400 members marked its 13th anniversary.
Other topics discussed at the MassMEDIC annual meeting included:
Change at the FDA: How Will it Impact the Medical Device Industry?
Mark Heller, Partner, Goodwin Procter
The State of the European MedTech Market
John Wilkinson, Chief Executive, Eucomed
Change in Washington – Implications for the Health Care Industry
Stephen J. Ubl, President, AdvaMed