Why acquire a monitoring device company?
Off late there has been surge in deal counts amid medtech OEMs and monitoring device companies. Newly added to this row, was BSC and Preventice deal, where the former acquires exclusive marketing rights of latter’s wearables . Direct peers of BSC namely Medtronic , St Jude have already boarded on the trend. Where Medtronic acquired Corventis,while St Jude bought CardioMeMs.
While the BSC exclusive marketing deal surfaced up a day ago, Medtronic, St Jude transactions could be mapped to last year, year that was quoted by some of the journals as Medtech M&A year.
Industry experts quote the rational to acquisitions, as a move to drive sales of business division that are under performing in comparison to their counterparts. BSC’s rhythm management division VP quotes” healthcare transformation as the reason for the move. He says
“As our healthcare environment continues to evolve, healthcare practitioners,administrators and payers are looking for solutions that identify relevant clinical insights from large volumes of patient data and integrate those insights to improve clinical decision-making,”
Financial details of the transaction were not divulged but exclusive marketing partnership was affirmed by leading medtech journals.
As the healthcare cost witness an increase on daily basis, payers and other healthcare providers are doing everything at their disposal to cut down the increasing cost. Leading players believe that, an working model involving monitoring of patients outside the hospital set up , along with usage of data that these devices generate could be instrumental in carving a new healthcare patient-doctor engagement model, which is likely to be more reliable and economical.
Since clinical actions would be driven by real time data analysis, the outcomes of model are bound generate best of results. All credit to be given to the innovative wearable from likes of Preventice, CardioMeMs, Corventis and many other start-ups who are looking to paint a better healthcare picture.
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