Improving Medical Technologies: Private Equity’s Role Supporting Life Sciences

“Over the last 10 years, private equity has invested over $280 billion in medical technologies that improves people’s lives”

WASHINGTON, D.C. — The American Investment Council and Pitchbook today released a new report, “Improving Medical Technologies: Private Equity’s Role in Life Sciences,” that showcases how private equity is playing an increasingly important role in the growth and continued strength of the life sciences industry. In the last decade alone, private equity has invested $280 billion across more than 1,800 life sciences and medical device companies in the U.S. Despite the economic effects of the pandemic, private equity continued to support life sciences and medical device companies, investing $36 billion and $55 billion, respectively, into each industry.

When the entire world entered the COVID-19 era, we all placed our hopes in our innovative life sciences companies to find a solution,” said Drew Maloney, President and CEO of the American Investment Council, “Private equity played a critical role in partnering with many of these companies, providing them much needed capital to expand operations and develop innovative drugs, devices, and technologies. Every business needs capital investments to grow, and I’m proud that private equity played such a critical role investing in medical technologies that improve lives.”

By partnering with companies across the life sciences spectrum, private equity is building better businesses — providing financial support and strategic advice to develop innovative technologies and devices that benefit patients.

The new report also provides examples of private equity investments in the medical device industry, including:

  • In June 2021, AIC members Blackstone, The Carlyle Group, and Hellman & Friedman invested in Medline, the country’s largest manufacturer of health care supplies. The investment will help them grow Medline’s product line, expand the company’s international presence, and strengthen their global supply chain.
  • In 2018, AIC member Platinum Equity acquired LifeScan, a subsidiary of Johnson & Johnson that makes blood glucose monitoring products. Platinum’s early focus on LifeScan’s digital capabilities helped the company navigate the COVID-19 pandemic, as its diabetic customers were forced to avoid trips to the doctor and pharmacies to get their prescriptions.
  • In the last decade alone, more than 900 health care device and supply companies have been sponsored by private equity firms.

To read the full report with additional data and case studies, please see here.