Right now, the medical devices sector is a hot one for both our Corporate Finance and R&D teams.
That’s down to two things. Firstly, the strength of the UK’s medical device manufacturing; particularly in orthopaedics, imaging, diagnostics and cardiovascular. And secondly, the UK’s reputation for healthcare innovation – both of which have been attracting domestic and overseas buyers.
With the increasing pressures on NHS budgets, technology is essential to reduce unit costs, as well as supporting the trend towards treatment and monitoring at home. Single use device manufacturers and non-evasive treatments are still attracting interest, too.
This culture of innovation and reducing unit cost offers huge potential for R&D claims.
For businesses that are innovating in the medical device industry, it’s good news: the UK Government have pledged to increase R&D funding to £12.5bn by 2021/22.
Valuable R&D tax credits are available which could be worth as much as 33p for every £1 spent. And what’s more, you could be eligible for the tax credits even if grants have been awarded to fund your innovation.
As with R&D claims in any sector, you don’t have to be donning your lab coat and setting the world alight to qualify for the tax credits (but if you literally are, we’re sure you’re onto a winner). Here are a few examples of innovation that could tick the boxes:
- Development of new devices
- Improvements to existing devices (these could include developing cost efficiencies, reducing size, increasing useful life or using new materials)
- Building new manufacturing facilities to mass produce the devices
- Clinical trials or other testing
- Creating prototypes
- Software development.
You can find more of our commentary on the medical device sector and recent transactions here. And if you’d like to know more about the current M&A activity in the sector, or increasing your R&D claims, we’d love to chat.