Consolidation is huge in the medical device space this year, and experts are not expecting the action to slow down.
According to a Health Care M&A News report, the consolidation is having a huge impact on the orthopedic device industry. Here are 10 key trends on the total medical device market to know:
1. The consolidation — such as the Zimmer/Biomet deal and Medtronic/Covidien deal announced earlier this year — are making even bigger global leaders.
2. Mid-sized and smaller manufacturers are now merging to strengthen product pipelines.
3. Tight regulations on tax inversions aren't stopping the year's biggest transactions in the sector, including the Medtronic/Covidien deal.
4. There were 103 transactions in the medical device sector in 2014, as of Nov. 30.
5. Total transactions for 2014 totaled $84.1 billion through Nov. 30.
6. The value of transactions in 2014 was up already 608 percent over 2013 by Nov. 30, even though there was no increase in the number of transactions thus far.
7. There has been some talk of the new Republican Congress striking down the 2.3 percent medical device excise tax next year, which could make 2015 "even more interesting," according to the report.
8. In 2013, there were 103 transactions in the medical device space totaling around $11.9 billion. This was 53 percent lower than 2012.
9. In 2005, transactions in amounts in the medical device space jumped 98 percent to $42.1 billion, but the number of deals was only up 5 percent.
10. The last time transactions in the medical device space increased — before a potential increase in 2014 — was 2010. The number of transactions was up 5 percent over 2009 to 185 transactions.