18 May Investing in innovation: the opportunities for MedTech
Our Founder and CEO, Bernard Ross, spoke to What Investment about the growing benefits of investing in MedTech:
Pressure is mounting on the global healthcare system. The ageing population has driven demand for medical care to grow exponentially. Medical technology (MedTech) companies are critical to providing new, cost-effective ways to address this growing demand – creating promising opportunities for private and venture capital.
The MedTech sector has seen substantial growth in recent years and that trend is expected to continue – the European medical technology market is estimated to be worth more than €120bn, with Germany, France, and the United Kingdom leading the way in research, development, and implementation of new medical devices.
The key drivers for significant growth in the UK MedTech market include increasing expenditure on healthcare, an ageing population, and a continuous stream of technological developments.
In 50 years, there are projected to be an additional 8.6 million people aged 65 years and over in the UK – a population roughly equivalent to the size of London. Latest figures also predict the number of people aged 85 and over – the age group most likely to require treatment for chronic health conditions – to double to 3.2 million by 2041 and treble by 2066.
An ageing population means more people relying on healthcare, but less people in employment to pay for it, at a time when medical costs are increasing exponentially. This has led to the NHS struggling to cope with demand – even prior to Covid-19.
As lifespans lengthen, the demand for more innovative solutions to be able to diagnose and treat chronic conditions and emerging illnesses is clear. Medical technologies are providing this value: they can offer more targeted treatments which allow people to live longer and better lives. MedTech can also improve the quality of care for patients, and the efficiency and sustainability of healthcare systems – which have finite resources.
Investing in innovation
The MedTech market is ripe with innovation, powered by major technological advancements and a growing use of wearable medical devices. In 2019, nearly 14,000 patent applications were filed with the European Patent Office (EPO) in the field of medical technology. This accounts for 7.7 percent of the total number of applications, second highest across all the sectors in Europe.
With medical technology innovations, like the geko™ device, already playing a fundamental role in changing how healthcare is delivered, the potential impact of MedTech companies is likely to be a significant opportunity for the healthcare system, while offering a healthy ROI for investors. Unlike other markets, rising demand for healthcare is guaranteed – presenting a stable investment which has a huge potential for growth as technology continues to evolve.
Read more about Bernard’s thoughts on MedTech investment here.