In a study available for payment, Ernst & Young reported that mergers and acquisitions of U.S. and European medical technology companies doubled in value to $30.6 billion last year from 2009, led by the biggest companies. More than $47.3 billion in transactions have been announced so far this year, led by Johnson & Johnson’s $21.3 billion plan to buy Synthes.
Ernst & Young said the trend would continue as companies use acquisitions to improve sales and diversify operations. However, growth through innovation has fallen, as investment in early stage technology cools off due to concerns that regulatory approvals and payor coverage may become more difficult, the company said.
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