Core Insights - The MedTech industry is experiencing a decline in M&A deals and venture financing rounds, highlighting a need for investment in early-stage companies [1][2] M&A and Financing Trends - There is a notable downward trend in the number of M&A, partnerships, and venture financing deals in the MedTech sector since 2015 [2] - Despite the decrease in deal volume, the average size of M&A deals has increased, with major companies favoring acquisitions of advanced, later-stage firms [4] - The median M&A deal size for top MedTech companies rose to $895 million from 2021 to 2025, over four times higher than the median from 2016 to 2020 [5] Investment Focus - Companies that secure multiple investments are typically in growth phases, indicating strong interest in funding scalable businesses [6] - MedTech firms are strategically focusing investments on areas with significant innovation and growth potential [8] Divestment Strategies - Larger MedTech companies are divesting or spinning off non-core divisions to streamline portfolios and concentrate on higher-growth markets [8][9] - Recent examples include Medtronic's spin-off of its Diabetes business, Becton Dickinson's separation of its Biosciences and Diagnostics division, and Johnson & Johnson's divestment of its orthopedic business [9]