- Growing Investment in Medical Technology – Investors continue funding the latest medtech innovations including medical devices, digital health, robotics and artificial intelligence (AI). With plenty of cash in the market, venture capital (VC), private equity (PE), and strategic investors aim to capitalize on and steer development of next generation medical technologies.
- Convergence of Medical Devices and Mobile Technology – During the pandemic, digital health, telehealth, wearables and mobile apps have taken center stage. After the pandemic ends, these new channels to monitor personal health will continue to shape healthcare.
- Intellectual Property (IP) Is Critical for MedTech Innovations – Patents and trade secrets are essential tools for protecting medtech innovations and maintaining a competitive edge. Strategic companies will increasingly leverage design patents to protect the “look and feel” of devices and user interfaces in addition to the “how it works” protections afforded by utility patents.
- M&A is Most Common Exit – While medtech IPOs will still happen, the most common exit will continue to be M&A. Large medtech players and new healthcare market entrants from the tech and insurance industries will continue to compete for the hottest technologies and raise deal valuations.
- Beware of Data Breaches, Hacking and Lawsuits – Large verdicts are driving a record number of products liability lawsuits. Beware of novel litigation strategies such as consumer class actions as well as the more predictable avenues of potential litigation risk surrounding adverse events and FDA and regulatory actions (recalls, warning letters, market withdrawals). Hacking of digital medical devices and data security and privacy of patient info continue to be top concerns. Understanding available legal defenses and interplay with regulatory status and actions is key.
About the Authors
David J. Dykeman, co-managing shareholder of Greenberg Traurig's Boston office and co-chair of the firm's global Life Sciences & Medical Technology Group, is a registered patent attorney with 25 years of experience in intellectual property law.
Ginger Pigott, a shareholder in the Los Angeles office of Greenberg Traurig, is a medical device product liability specialist with nearly 30 years of experience in defense litigation as well as in depth counseling to help evaluate, mitigate and/or reduce product liability risk.
Wayne Elowe, co-chair of Greenberg Traurig’s Life Sciences and Medical Technology Group and co-chair of the Atlanta Corporate and Securities Group has 30 years’ experience counseling clients in connection with their global business, M&A and collaborative transactions.