Investments in medical technology remain strong despite weakened economy

WASHINGTON Private investment in the United States medical technology industry has remained strong over the last year and a half despite the credit crunch, according to a report released recently by research firm Ernst & Young.

Meanwhile, the 301 publicly traded medical technology companies with headquarters in the U.S. have produced solid growth in revenues and earnings, driven by continued demand and innovation due to medical and demographic trends, according to the report, titled “Pulse of the Industry: US Medical Technology Report 2008.”

“White the credit crunch has depressed equity financing, venture capital and deal activity remain solid,” Ernst & Young U.S. medical technology leader Richard Ramko said. “The industry is poised for growth in the years ahead due to aging populations, the wider prevalence of chronic diseases and an expected surge in demand for companion diagnostics to accompany new generations of targeted therapies.”