Lloyd Price
- Oct 3, 2023

In Vitro Diagnostics: emerging HealthTech sub sector is 'one to watch in 2024'

Exec Summary:

In vitro diagnostics (IVD) is an emerging HealthTech sub sector that is expected to see significant growth in 2024 and beyond. IVDs are tests performed on samples taken from the body, such as blood, urine, or tissue. They are used to diagnose a wide range of diseases and conditions, including cancer, infectious diseases, and genetic disorders.

There are a number of factors driving the growth of the IVD market. One is the increasing prevalence of chronic diseases, such as cancer and diabetes. These diseases require regular monitoring and testing, which is boosting demand for IVDs. Another factor is the growing aging population. Older adults are more likely to suffer from chronic diseases and require more medical care, including IVD testing.

The IVD market is also being driven by technological advances. New technologies are making it possible to develop more accurate, sensitive, and rapid IVD tests. For example, next-generation sequencing (NGS) is being used to develop new tests for genetic disorders and cancer. Point-of-care (POC) testing is also becoming increasingly popular. POC tests can be performed outside of a laboratory setting, which makes them more convenient for patients and clinicians.

The IVD market is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2022 to 2028, according to a report by Global Market Insights. This growth will be driven by the factors mentioned above, as well as the increasing demand for personalized medicine.

Some of the key trends that are expected to shape the IVD market in 2024 and beyond include:

The rise of precision medicine: Precision medicine is an approach to healthcare that takes into account individual variability in genes, environment, and lifestyle. IVDs are playing an increasingly important role in precision medicine by helping clinicians to identify the best treatment for each individual patient.
The growth of point-of-care testing: POC testing is becoming more popular because it is convenient and affordable. POC IVDs are expected to play a major role in the early detection and diagnosis of diseases.
The increasing use of artificial intelligence (AI): AI is being used to develop new IVD tests and to improve the performance of existing tests. AI is also being used to develop new algorithms for data analysis, which can help clinicians to make better decisions about patient care.

Overall, the IVD market is a growing and dynamic sector with a lot of potential. It is a sector to watch in 2024 and beyond.

Here are some examples of emerging IVD technologies and companies:

Next-generation sequencing (NGS): NGS is a powerful technology that can be used to sequence the entire human genome. NGS is being used to develop new IVD tests for genetic disorders and cancer. For example, the company Illumina has developed a number of NGS-based IVD tests, including the TruSight Oncology 500 test, which is used to identify genetic mutations in cancer patients.
Point-of-care (POC) testing: POC testing is becoming increasingly popular because it is convenient and affordable. POC IVDs are expected to play a major role in the early detection and diagnosis of diseases. For example, the company Abbott Laboratories has developed a number of POC IVD tests, including the i-STAT handheld blood analyser, which can be used to test for a variety of blood conditions.
Artificial intelligence (AI): AI is being used to develop new IVD tests and to improve the performance of existing tests. AI is also being used to develop new algorithms for data analysis, which can help clinicians to make better decisions about patient care. For example, the company PaigeAI is using AI to develop new IVD tests for cancer.

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The big question: how will IVD manufacturers meet the growing demand for accurate and rapid testing?

The big question in the in vitro diagnostics (IVD) market over the next 12 months is how to meet the growing demand for accurate, sensitive, and rapid testing in a cost-effective way.

This is being driven by a number of factors, including:

The increasing prevalence of chronic diseases, such as cancer and diabetes
The growing aging population
The rise of precision medicine
The growth of point-of-care (POC) testing

IVD manufacturers are responding to this challenge by developing new technologies and products. For example, they are developing NGS-based tests for genetic disorders and cancer, POC tests for early detection and diagnosis of diseases, and AI-powered tools to improve the performance of IVD tests.

However, there are still a number of challenges that need to be addressed before IVD testing can be made more widely available and affordable. One challenge is the high cost of some IVD tests. Another challenge is the lack of reimbursement for IVD tests in some countries.

In the next 12 months, we can expect to see continued innovation in the IVD market, as manufacturers strive to develop new technologies and products that meet the growing demand for accurate, sensitive, and rapid testing in a cost-effective way. We can also expect to see governments and healthcare insurers take steps to improve reimbursement for IVD tests, in order to make them more accessible to patients.

Potential acquirers in 2024

The following companies are likely to be involved in M&A activity in the in vitro diagnostics (IVD) market in 2024:

Large IVD companies: These companies have a strong financial position and are looking to expand their product portfolios and geographic reach. Examples include:
- Abbott Diagnostics
- Becton, Dickinson and Company (BD)
- Danaher Corporation
- Hologic, Inc.
- Johnson & Johnson
- QIAGEN N.V.
- Roche Diagnostics
- Siemens Healthineers
- Thermo Fisher Scientific Inc.

Small and medium-sized IVD companies: These companies have innovative technologies and products that are attractive to larger IVD companies. Examples include:
- Bio-Rad Laboratories, Inc.
- CoaguSense
- Illumina, Inc.
- Myriad Genetics, Inc.
- NanoString Technologies, Inc.
- PaigeAI
- QuidelOrtho

Companies outside of the IVD industry: These companies may be interested in acquiring IVD companies in order to expand their product portfolios or to gain access to new technologies. Examples include:
- Alphabet Inc. (Google)
- Amazon.com, Inc.
- Apple Inc.
- Microsoft Corporation

In addition to these companies, there are a number of private equity firms that are also interested in investing in the IVD market. These firms can provide capital to help IVD companies grow and expand.

Key M&A trends predicted in the in vitro diagnostics market in 2024

Here are some key M&A trends predicted in the in vitro diagnostics (IVD) market in 2024:

Large IVD companies acquiring smaller IVD companies: This trend is likely to continue, as large IVD companies look to expand their product portfolios and geographic reach. For example, in 2022, Danaher Corporation acquired Cytiva for $25.4 billion. Cytiva is a leading provider of life sciences research and manufacturing tools. This acquisition gives Danaher a strong presence in the IVD market, as Cytiva offers a wide range of IVD products, including immunoassays, molecular diagnostics, and POC testing solutions.
Companies outside of the IVD industry acquiring IVD companies: This trend is also likely to continue, as companies outside of the IVD industry look to expand their product portfolios or to gain access to new technologies. For example, in 2022, Alphabet Inc. (Google) acquired Fitbit for $2.1 billion. Fitbit is a leading provider of wearable fitness devices. This acquisition gives Alphabet access to Fitbit's health data, which could be used to develop new IVD products and services.
Private equity firms investing in IVD companies: Private equity firms are also likely to continue investing in the IVD market. This is because the IVD market is a growing market with a lot of potential. For example, in 2022, Hellman & Friedman acquired Bio-Rad Laboratories for $8.2 billion. Bio-Rad is a leading provider of life science research and clinical diagnostic products. This acquisition gives Hellman & Friedman a strong presence in the IVD market.

In addition to these trends, we can also expect to see M&A activity in the IVD market driven by the following factors:

The rise of precision medicine: Precision medicine is an approach to healthcare that takes into account individual variability in genes, environment, and lifestyle. IVDs are playing an increasingly important role in precision medicine by helping clinicians to identify the best treatment for each individual patient. This is driving demand for IVD products and services, and making the IVD market more attractive to potential acquirers.
The growth of point-of-care (POC) testing: POC testing is becoming more popular because it is convenient and affordable. POC IVDs are expected to play a major role in the early detection and diagnosis of diseases. This is driving demand for POC IVD products and services, and making the POC IVD market more attractive to potential acquirers.
The increasing use of artificial intelligence (AI): AI is being used to develop new IVD tests and to improve the performance of existing tests. AI is also being used to develop new algorithms for data analysis, which can help clinicians to make better decisions about patient care. This is driving demand for AI-powered IVD products and services, and making the AI-powered IVD market more attractive to potential acquirers.

Overall, we can expect to see a significant amount of M&A activity in the IVD market in 2024. This activity will be driven by the factors mentioned above, as well as the increasing importance of IVD testing in healthcare.

Final Thoughts:

The future of the in vitro diagnostics (IVD) market is bright. The market is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2022 to 2028, according to a report by Global Market Insights.

This growth will be driven by a number of factors, including:

The increasing prevalence of chronic diseases, such as cancer and diabetes
The growing aging population
The rise of precision medicine
The growth of point-of-care (POC) testing
The increasing use of artificial intelligence (AI)

Here are some specific trends that are expected to shape the future of the IVD market:

The rise of precision medicine: Precision medicine is an approach to healthcare that takes into account individual variability in genes, environment, and lifestyle. IVDs are playing an increasingly important role in precision medicine by helping clinicians to identify the best treatment for each individual patient.
The growth of point-of-care (POC) testing: POC testing is becoming more popular because it is convenient and affordable. POC IVDs are expected to play a major role in the early detection and diagnosis of diseases.
The increasing use of artificial intelligence (AI): AI is being used to develop new IVD tests and to improve the performance of existing tests. AI is also being used to develop new algorithms for data analysis, which can help clinicians to make better decisions about patient care.

In addition to these trends, the future of the IVD market will also be shaped by the following factors:

The increasing demand for personalised medicine: Personalised medicine is an approach to healthcare that tailors treatments to the individual patient's needs. IVDs are playing an increasingly important role in personalised medicine by helping clinicians to identify the best treatment for each individual patient.
The growing importance of preventive care: Preventive care is the practice of preventing diseases from occurring in the first place. IVDs are playing an increasingly important role in preventive care by helping clinicians to identify early signs of disease.
The increasing demand for affordable healthcare: Healthcare costs are rising around the world. IVDs can help to reduce healthcare costs by making it possible to diagnose and treat diseases more efficiently.

Overall, the future of the IVD market is very promising. The market is expected to grow significantly in the coming years, driven by a number of factors, including the increasing prevalence of chronic diseases, the growing aging population, the rise of precision medicine, the growth of point-of-care testing, and the increasing use of artificial intelligence.