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MedTech M&A 2025: Pharma-Inspired Strategy, Bigger Bets, and Focused Growth

​The MedTech industry has continued its strong M&A momentum from 2024 into the first half of 2025. Larger blue-chip companies are increasingly looking to Pharma for strategic inspiration particularly in how to scale efficiently while managing risk. With cash still king, many are dialling down internal R&D spend in favour of acquiring innovation externally.

Macroeconomic factors such as tariff changes, shifting international policy, and tighter regulatory landscapes are shaping boardroom decisions. In response, MedTech businesses are diversifying into more stable segments, with cardiovascular and implantable devices leading the surge.

Notable deals so far in 2025 include:

  • Stryker’s acquisition of Inari Medical (~$4.9B, completed January)

  • Thermo Fisher Scientific’s purchase of Solventum’s Filtration Division ($4.1B, completed May)

  • Boston Scientific’s acquisition of Axonics ($3.7B, completed January)

While deal volumes are down, the average value per deal has increased indicating a more targeted and deliberate approach to investment.

In key MedTech employment hubs California, Minnesota, and Massachusetts investment volume is down to 80% of the previous 12 months, yet funding amounts have risen by 12%. This reflects a clear shift in focus: fewer bets, but higher conviction.

Insights from BioTalent’s recent visit to Device Talks in Boston echoed this trend. Industry leaders emphasised the importance of clear leadership, simplicity in direction, and long-term planning as the critical intangibles that justify M&A risk.

Looking ahead, 2025 is shaping up to be a year of fewer, smarter, and larger deals. With R&D spend tightening, strategic acquisitions remain the dominant growth play and those who move with clarity and purpose are poised to lead the next chapter in MedTech innovation.