The global medtech industry continues to see steady dealmaking, but 2026 has started on a slower note, with geopolitical tensions and shifting investor sentiment influencing activity across mergers, acquisitions, and IPOs.
According to insights from EY, original equipment manufacturers (OEMs) are prioritising high-growth areas such as pulsed-field ablation (PFA), while broader market uncertainty, especially conflict in the Middle East, is affecting capital market activity.
In 2025, the sector recorded notable transactions, including Abbott’s $21 billion acquisition of Exact Sciences, Becton Dickinson’s $17.5 billion divestment of its Biosciences & Diagnostic Solutions unit to Waters Corporation, and Stryker’s $4.9 billion acquisition of Inari Medical.
However, dealmaking momentum has softened in 2026. At the J.P. Morgan Healthcare Conference in January, Boston Scientific’s $14.5 billion acquisition of Penumbra stood out as the only major deal. Activity has since picked up slightly, including Medtronic’s acquisition of Scientia Vascular in March.
On the IPO front, 2025 saw a modest rebound, with companies such as Kestra and BillionToOne going public. The year closed with Medline’s $6.26 billion offering. In contrast, 2026 has seen limited IPO momentum so far. One of the few highlights was MiniMed, a diabetes-focused firm, raising $560 million in March, below its expected $784 million target.
EY’s 19th ‘Pulse of the Medtech Industry’ report, authored by John Babitt and Arda Ural, notes that dealmaking remains “judicious,” with fewer transactions but higher valuations.
Since the report’s release, geopolitical developments, including tensions involving the US, Israel, and Iran, and the closure of the Strait of Hormuz, have added pressure on global supply chains and investor confidence. These factors are also influencing pricing dynamics and IPO activity.
At the same time, artificial intelligence continues to reshape the medtech landscape, with investors closely tracking its impact across end markets.
The industry now faces a balancing act between innovation-driven growth and external uncertainties, as companies navigate evolving market conditions.
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