Mergers and acquisitions in the European medical imaging market are on the rise and because the healthcare industry is among the least affected by the economic downturn, there is sufficient funding available for healthcare deals, resulting in this increase in the number of takeovers, according to market research firm Frost & Sullivan.
The report said that the medical imaging market earned revenues of $5.65 billion in 2009 and market leaders are shifting their focus on expanding shares in emerging markets, including drug makers, research labs, equipment manufacturers and healthcare technology companies, while hospitals, insurers and pharmacological companies are presenting a lower number of acquisitions.
Market trends have also suggested that Japanese manufacturers have gained entry into the U.S. and European markets, whereas U.S. companies have expanded their market share by acquiring smaller U.S. companies, said Frost & Sullivan.
While tier one companies often present the highest revenues and range of product offerings across all segments of medical imaging, tier two companies have been presenting high revenues in the medical imaging market. The report noted that tier three companies present less product offerings.
“Market expansion, technological developments, and competitive pricing will play an important role in the survival of non-tier I companies, as tier one companies continue to enhance their position in all three criteria through strategic acquisitions,” concluded research analyst Beulah Devadason, of Frost & Sullivan.