I am curious to hear your opinion on the Medical Devices and its M&A Convergent opportunit?
While geographic roll-ups, product / market extension M&A continue to dominate and also M&A appears to be an excellent vehicle as R&D, it will be interesting to see how technology and value chain software will play a M&A strategic role as “industry convergence M&A”, as I truly believe that there will be a wave of M&A around assembling disparate companies that are idiosyncratic and will provide a competitive strategic leverage for large medical device companies.
I have experience supporting the preoperative planning software business in the orthopedic field in the Japanese market. Companies like Medtronic and Zimmer Biomet are trying to leverage digital technology, but I see many new entrants unable to do business in terms of FDA and PMDA certification and access to KOL. I don’t know who will be the key player, but I personally think that the medical device industry will become like the pharmaceutical industry, which is likely to move from a vertically integrated model to a horizontal international specialization. e.g.Spin-out of manufacturing department and appearance of CDMO.