The medtech investment landscape in the APAC region has experienced a notable downturn since its peak in 2021. Venture financing and M&A deals have decreased by 22% and 37%, respectively, over the past two years (through 2023). This decline is driven by global factors such as market volatility, rising interest rates and geopolitical instability, as well as specific regional challenges.
These challenges are compounded by escalating operating costs, including increased inflation pressure, supply chain disruptions, research costs and regulatory hurdles, which collectively strain the financial sustainability of startups.
The participants in APAC’s medtech innovation ecosystem are grappling with critical issues that require urgent attention. Despite these unfavorable conditions, the region’s pivotal role in advancing medtech innovation for the world is recognized. Addressing inadequate capital allocation is crucial for sustaining innovation and delivering lifesaving interventions. This requires a collective effort from all stakeholders, across the public and private sectors, to foster a more favorable investment climate through enhanced collaboration and strategic initiatives.
Yet a significant gap remains in the ecosystem’s ability to support innovation effectively. L.E.K.’s sentiment survey rates the maturity of the APAC medtech ecosystem at 2 (out of 5), compared with 5 in the U.S., highlighting the need for further development to better nurture and sustain medtech advancements. This whitepaper delves into stakeholder perspectives and identifies key areas for improvement within the ecosystem.
Download the whitepaper to learn more and get a detailed insight.
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