DOCSF Venture 2023: Unpacking the Trends- A Forward-Looking Conversation with Cannacord Genuity

In this episode, Kyle Rose, Managing Director of Medical Technology, and Richard Close, Managing Director of Digital & Tech-Enabled Health Equity Research represent the Canaccord Genuity investment bank and give their perspective on the 2022’s MSK investment data pulled from Silicon Valley Bank’s annual report for Healthcare Investments and Exits. Richard Close is Cannacord’s Managing Director of Digital and Tech-Enabled Health Equity Research and offers his point of view from what he’s seen from digital companies. Kyle Rose is the Managing Director of Medical Technologies and focuses more on the medical devices side of the investments shown.

Regarding investments, mergers, and acquisitions, digital health companies consolidated deals similar to what they did in 2020. This time, they focused on reducing care costs for employers and payers while striving for better patient outcomes. This cost-avoidance investment strategy is becoming strong, but it doesn’t rule out value-based agreements yet. When it comes to devices, however, there was a trend that leaned towards procedural-specific technologies, which help providers excel in their technique and produce better results. It was worth it for Kyle to note that this can be reflected in the data that shows more investment in enabling technologies for procedures, pre-surgical planning, and implants.

Richard and Kyle comment on the role AI played in investments in 2022. Based on their experiences, AI-enabled technologies find themselves on the rise when they simplify user experience and satisfaction, key factors around reimbursement. They find value in these propositions when it enhances surgical techniques and procedures, resource allocation and optimization, and workflow dynamics. They don’t believe there is yet true regulatory risk when it comes to investing in these technologies, from an orthopedic perspective at least. However, they do believe there are future uses, similar to the diabetes field, where AI could be used to solve orthopedics and staffing issues.

Tune in to this episode and listen to Kyle Rose and Richard Close give their investment-bank-permeated take on 2022’s MSK investments!