In a follow up to the European MedTech Summit in Lausanne, Switzerland http://www.techtour.com/index.html, Brian Hashemi (former NASA biomedical scientist and president of the summit) has given a few of his insights into the sector: http://bulletin.sciencebusiness.net/ebulletins/showissue.php3?page=/548/art/12271.
What we see here is a relatively bullish stance in the midst of the ‘most profound global financial crisis since the great depression.’ Of course from where he’s standing he’s got to be positive, but reading his opinions we do get a sense the MedTech space is positioned to hold up reasonably well and attract investors cash where others can’t.
He notes that VC investments in MedTech are growing rapidly – in the US in 2007 this grew over $1bn to reach $4bn and Europe is seeing a similar trend. Let’s hope they have capacity to continue well into ’09.
Although the financial crisis will affect the healthcare industry, his argument for the continued, albeit smaller, investment is as follows: an ageing population is putting a strain on the healthcare system, and solutions – such as the early detection of cancer – are needed to save money, as well as lives. Mentioning ‘in Western societies, 80 percent to 85 percent of all healthcare spending devoted to an individual is incurred during the last two years of life’: we see that inevitably spending will increase and cost cutting measures will become even more paramount.
Lets hope he’s right…
(article contributed by Jamie Beare, Allen & Caron London)