EvaluateMedTech®WorldPreview2016,Outlookto20225thEdition–October2016WelcometotheEvaluateMedTech®WorldPreview2016,Outlookto2022OurfifthannualEvaluateMedTech®WorldPreviewbringstogethermanyofouranalysestoprovideatoplevelinsightintotheexpectedperformanceofthemedtechindustrybetweennowand2022.BasedonEvaluateMedTech®’scoverageoftheworld’sleadingmedicaldeviceanddiagnosticcompanies,theWorldPreviewhighlightstrendsinmedtechincluding:consensussalesforecastsofleadingindustryanalystsbydeviceareato2022;thetop20companiesin2022;R&Dspendcurrentandfuture;FDAapprovals;M&A;venturefinancingandIPOs.Complimentarycopiesofthefullreportcanbedownloadedat:®WorldPreview20162Copyright©2016EvaluateLtd.Allrightsreserved.EvaluateMedTech®providestrustedglobalmedtechmarketintelligenceandconsensusforecastsdeliveredthroughasingleintegratedandstandardisedplatform,thateasilyintegrateswithyourownanalyticalmodels.Itallowsmedtechcompanies,financialinstitutions,consultancies,serviceprovidersandotherstoefficientlytrack,benchmarkandforecastthesectorsomoretimecanbespentexamininginsightsandmakingeffectivedecisionstooptimiseperformance.TofindoutmoreaboutthisreportandEvaluate’srangeofservicesforthelifesciencesectorpleasecontactus:NorthAmerica:AlanRaiderTel:+16175739455/Email:alan.raider@evaluategroup.comRestoftheWorld:WillHauTel:+44(0)2073770800/Email:will.hau@evaluategroup.comJapan:HiroshiYamazakiTel:+81(0)8011644754/Email:hiroshi.yamazaki@evaluategroup.comForgeneralquestions:ChristineLindgrenTel:+16178663906/Email:christine.lindgren@evaluategroup.comAllintellectualpropertyrightsinthisreportremainthatofEvaluateLtdand/oritsrespectivethirdpartylicensors.Whilstallreasonablestepshavebeentakentoensurethatthedatapresentedareaccurate,EvaluateLtdcannotacceptresponsibilityforerrorsoromissions.NeitherdoesEvaluateLtdwarranttheaccuracy,merchantabilityorfitnessforaparticularpurposeofthedata.Nothinginthereportsshallconstituteinvestment,financialorlegaladviceandthecontentsofthereportsareprovidedforinformationpurposesonly.Thedataisnotintendedtoamounttoadviceandshouldnotbeusedasadeterminingfactorinanyinvestmentdecision.Thisreportmaynotbelent,resold,hiredoutorotherwisedisposedofbywayoftradeinanyformofbindingorcoverotherthanthatinwhichitispublished,withoutthepriorwrittenconsentofEvaluateLtd.Copyright©2016EvaluateLtd.Allrightsreserved.3Copyright©2016EvaluateLtd.Allrightsreserved.AboutEvaluateMedTech®EvaluateMedTech®WorldPreview2016Foreword4Copyright©2016EvaluateLtd.Allrightsreserved.Inthe2016editionoftheEvaluateMedTech®WorldPreviewwecanrevealthattheglobalmedtechindustryisexpectedtogrowat5.2%peryear(CAGR)between2015and2022,culminatingin2022globalsalesof$529.8bn(pages8-9).Theanalysisisbasedonin-depthforecastmodelsforthetop300globalmedtechcompaniesavailablewithinEvaluateMedTech®.Thissalesforecastrepresentstheonlycurrentconsensusviewfromequityanalystsoftheentiremedtechmarket.Diagnosticsarebig,butneurologyisfastIVDsmaybethelargestsectorbutitisnotthefastest-growing.Thegreatestexpansionofatop-15deviceareawillbeseeninneurology,whichhasaforecastCAGRof7.6%between2015and2022.IVDsaleswillonlygrowataround5.6%duringthisperiod.MergermanialeavesMedtronicinchargeConsolidationwithinthemedtechindustryiswindingdown,withM&Aactivityinthefirsthalfofthisyearhavingslumped79%fromthesameperiodin2015tojust$17bn.NowthedusthassettledMedtronichasemergedasthelargestcompanybysalesofmedicaldevices:its2015revenuescameto$28.8bn.Remarkably,its4.7%annualgrowthrateputsitevenfurtheraheadin2022,whenitsmedtechrevenuesareforecasttoreach$39.9bn.Thatsaid,therearestillafewsector-changingdealsinthepipeline.MostnotableisAbbott’spendingpurchaseofSt.JudeMedicalfor$25bnwhichcouldhelpbumpAbbottupthecompanyrankingsfromseventhpositionoveralltothird.Ten-yearapprovalshighOntheregulatoryfront,theFDAhashadanoutstandingyear,increasingthenumberoffirst-timePMAsandHDEsby55%over2014’stotaltoaten-yearhighof51in2015.Invitrodiagnosticswillremainthenumberonedeviceareain2022withsalesof$70.8bn–morethan13%oftheindustry’stotalsales.Rocheistheleadingcompanyinthissegment,withits2022testsalesforecasttoreach$12.8bn.EvaluateMedTech®WorldPreview2016Foreword5Copyright©2016EvaluateLtd.Allrightsreserved.Thatsaid,thepaceseemstohaveslowedslightlysince.EvaluateMedTech®foundthatuptotheendofAugust2016,theFDAhadissued27first-timePMAs,slightlydownonthe2015figureof30atthistimepoint.Asiftocompensate,overthesameperiodtherewere15denovo510(k)clearances,a50%increaseoverthesamepointlastyear.EvaluateMedTech®WorldPreview2016Overallthedeviceindustryisgrowingreasonablyrapidly,andthecalmingoftheM&Asceneisnobadthing.Alreadythesectorisseeingaresurgenceofsmallertuck-indealsonwhichstart-ups,asignificantsourceofdisruptivenewtechnologies,depend.IanStricklandProductManager,EvaluateMedTech®ElizabethCairnsMedtechReporterAnalysisHighlights6Copyright©2016EvaluateLtd.Allrightsreserved.•Worldwidemedtechsalesforecasttoreach$529.8bnby2022•Worldwidemedtechmarketforecasttogrowmoreslowlythanprescriptiondrugmarket,withaCAGRof5.2%between