PitchBook has recently released a new analyst note dedicated to medtech. The report examines the capital investment differences between medtech and biotech and analyses why biotech has overshadowed medtech in recent years, forecasting what the future of medtech holds.
While the biotech and medtech industry groups come together to comprise the life sciences industry, they are not necessarily equally weighted counterparts—particularly from an investment perspective. Several key differences exist between the two, and alignment with investors’ timelines and capital expectations is critical. In “Medtech versus biotech” below, we detail differences between investing in medtech versus biotech, particularly as each relates to average time to market, the Food and Drug Administration (FDA) regulatory approval process, the average associated costs, whether clinical trials need to be conducted, and the platform scalability and versatility.