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5 Trends to Watch: 2023 Medical Device Industry

  1. Investment Continues in Medical Devices and Technology – The challenging economy during the last year has slowed the pace of investment and lowered valuations, but investors still have money and a willingness to invest in new technologies addressing unmet medical needs. Venture capital (VC), private equity (PE), and strategic investors continue to look for opportunities to capitalize on and steer development of next generation medical treatments.

  2. Due Diligence for Investment and Acquisitions Goes Deeper – The most common medtech exit last year was M&A, and M&A momentum will continue in 2023. The medtech giants have lots of cash and will be looking to acquire or invest in innovative or bolt-on technologies that can drive revenue. Potential targets should de-risk their commercial, regulatory and IP strategies and be prepared for deeper scrutiny during due diligence.

  3. The Rise of AI and Connected Devices – Artificial intelligence (AI) is having a bigger impact on medical devices in the delivery of treatments, R&D, clinical trials, data collection, and personalized medicine. Connected devices and telehealth continue to change the delivery of healthcare.

  4. Intellectual Property (IP) Is Critical for MedTech Innovations – The pace of innovation in medtech continues to accelerate, as does the importance of IP. Strategic companies should use patents, trademarks, and trade secrets to protect innovations and gain a competitive edge. In uncertain times, collaborations can help advance technology in a de-risked manner. Strategic managing of IP provides an advantage for weathering a stormy market. 

  5. Beware of Data Breaches, Hacking, and Lawsuits – Hacking of digital medical devices, data security and privacy of patient info are top concerns. In today’s uncertain economy, expect an uptick in litigation from personal injury and commercial disputes to consumer class actions focused on data, privacy or enforcement activity by the FDA or other agencies. Making choices that strengthen your access to legal defenses and demonstrate proper responses to issues when they arise remains key.

About the Authors

David Dykeman, who serves as Co-Managing Shareholder of Greenberg Traurig's Boston office and co-chairs the firm's global Life Sciences & Medical Technology Group, is a registered patent attorney with 25 years of experience in patent and intellectual property law. He focuses on securing worldwide intellectual property protection and related business strategy for high tech clients, with particular experience in life sciences, medical devices, robotics, materials, and information technology.

Ginger Pigott, a shareholder in Greenberg Traurig’s Pharmaceutical, Medical Device & Health Care Litigation Practice, provides critical product liability advice and litigation defense to emerging and established businesses. She manages products liability litigation matters with an emphasis on the defense of complex medical device and pharmaceutical products and handles high-stakes, single-plaintiff cases (including through trial) and complex litigation.