Five Largest MedTech Companies Gained Combined $40bn Year-on-Year
The coronavirus outbreak put immense pressure on the healthcare industry, forcing pharmaceutical institutions to roll out clinical trials for a COVID-19 vaccine at breakneck speed. However, many other companies also played a huge role in identifying symptoms and keeping the virus under control, which sparked significant innovations in the medical technology market.
According to data presented by AksjeBloggen, the combined market capitalization of Johnson & Johnson, Abbott Laboratories, Medtronic, Siemens AG, and Cardinal Health Inc., as the five biggest MedTech companies globally surged by $40bn year-over-year, reaching $394.3bn in October.
Abbott Laboratories Market Cap Jumped by 31%, the Biggest Increase in 2020
The World Health Organization defines medical technology, or MedTech, as the use of knowledge and technology in devices, medicines, and procedures to advance human health. One aspect of that which has been drawing more and more attention lately is remote healthcare services or telemedicine, as the growing number of people seek medical advice from the safety of their homes.
In September 2019, the combined market capitalization of the five major Medtech companies amounted to $354.2bn, revealed the Yahoo Finance data. By the end of the year, their combined value of shares rose to $398.7bn.
However, the first quarter of 2020 witnessed a significant drop, with the figure plunging to $359.1bn after the stock market crash in March. The following months brought a recovery, with the combined market capitalization of the five companies rising to $385.4bn in June.
The increasing trend continued in the fourth quarter, with the figure increasing by $8.9bn between June and October.
As the leading MedTech company globally, Johnson & Johnson witnessed an almost $40bn increase in the market capitalization year-over-year, growing from $340.3bn in September 2019 to around $380bn last week.
However, statistics indicate that Abbott Laboratories, the second-largest MedTech firm, witnessed the most significant market cap growth in 2020. In December 2019, the combined value of shares of the Chicago-based healthcare company specialized in nutrition, pharmaceuticals, diagnostic treatments, and medical devices amounted to $153bn. After falling to 139.5bn in March, this figure recovered to $161.8bn in June and continued rising.
In August, the company announced the US Food and Drug Administration (FDA) had issued Emergency Use Authorization for its BinaxNOW COVID-19 portable and affordable antigen test that can deliver results within 15 minutes. Since March, the company has got US authorizations for five other coronavirus tests, including the ID Now that can provide results within minutes.
The Yahoo Finance data show Abbott Laboratories market cap jumped to $194.1bn last week, a 31% increase year-over-year.
Siemens AG Market Cap Rose by 20% Year-over-Year
As one of the leading manufacturers and developers of medical devices in the industry, Siemens AG has also witnessed substantial market cap growth in 2020. Their products mostly center around diagnostic equipment and medical imaging systems, the largest contributor of more than €86.8 billion in revenue in the 2019 fiscal year. Statistics show the combined value of the German company’s shares rose by 20% year-over-year, rising from $87.4bn in September 2019 to $104.4bn last week.
The market capitalization of Medtronic plc, the Irish firm that has been at the top of the industry for nearly three decades, rose by 3.5% YoY. In December 2019, the market cap of the medical device company peaked at $151.3bn. After a sharp fall to $120.8bn in March, this figure recovered to $150.4bn last week.
The Yahoo Finance data indicate that Cardinal Health, Inc., an American multinational health care services company providing supplies to more than 75% of the US hospitals, witnessed the smallest increase in the combined value of shares. Statistics show its market cap rose by $350 million after the stock market crash in March, landing at $14.3bn last week, a 3.7% increase year-over-year.
Releaf Secures $4.2M in Seed Funding Plans To Drive Industrialisation of Food Processing in Africa
Nigerian agritech start-up, Releaf, has just announced a $2.7 million seed funding led by Samurai Incubate Africa, Future Africa and Consonance Investment Managers with participation from Stephen Pagliuca, Chairman of Bain Capital and Justin Kan (Twitch).
In addition to the seed round, Releaf also secured $1.5 million in grants from The Challenge Fund for Youth Employment (CFYE) and USAID.
The seed funding will enable the development of industrial food processing technology in Nigeria’s smallholder-driven Oil Palm sector, while the grant will enable Releaf to provide working capital and other value-added services for smallholders and small-scale processors. Grant funding will support the training, recruitment and retention of more women and youth in Nigeria’s Oil Palm sector by creating both digital and technical jobs.
Nigeria’s oil palm industry is dominated by smallholder farmers, with 80 percent of the local market share. However, production rates are low because many still rely on inefficient processes for de-shelling, including the use of rocks and inappropriate hardware. These ineffective processes also lead to low-quality palm kernels, largely unfit as input for high-quality vegetable oil manufacturing. As a result, food factories are unable to purchase these raw materials and operate significantly under capacity. On average, food factories have 3X more installed capacity than utilisation, which impacts the cost of food and further investment into processing capacity.
Releaf acts as a bridge between smallholder farmers and food manufacturing companies with its proprietary patent-pending machinery, Kraken. Kraken can process any quality of palm nut into premium quality (95 percent purity) inputs for food factories. Releaf’s software connects the start-up to more than 2,000 smallholder farmers, ensuring consistent, large-scale supply. While palm kernel oil production is not foreign to Nigeria, Releaf’s technology and scale mean it can process 500 tonnes of palm nuts per week. The software offerings also allow the start-up to receive inbound supply requests from farmers via USSD, provide working capital financing, and collect proprietary data on supply availability.
Speaking about the new funding, Ikenna Nzewi, CEO and co-founder of Releaf, said, “our mandate is to industrialise Africa’s food processing industry. This round of funding enables us to develop and prove our technology with smallholder farmers in the oil palm sector. Given Nigerians spend ~60 percent of their income on food and Africa’s population is set to increase by 100,000 people per day over the next three decades, we’re presented with an incredible opportunity to feed more people, reduce consumer costs, and supply the fastest-growing food market in the world. Releaf is committed to harnessing technology to accelerate the economic wealth of rural, agrarian societies throughout the Continent. We firmly believe that a robust real economy is the foundation for long-lasting and shared prosperity for Africans and are excited to deepen partnerships with like-minded organisations, governments, and firms.”
Rena Yoneyama, Managing Partner at Samurai Incubate Africa who led the round, commented, “Releaf’s novel approach to operating within the value chain with proprietary technology set it aside from many agritech startups we have spoken about to. We believe the firm’s thesis on decentralizing food processing would strongly match Africa’s economic development landscape for the next few decades. Ikenna and Uzo are the perfect founders to disrupt this market in Nigeria and beyond. We are thrilled to back them as they innovate in providing both agro-processing and financial services to rural communities and farmers.”
Iyin Aboyeji, General Partner at Future Africa noted, “more than 50% of the goods in supermarkets globally contain glycerine – an extract made from palm oil – a cash crop that is passed down from generation to generation. The team at Releaf is building the agro-allied industry of the future from the ground up, starting with palm oil which they have developed a novel technology to aggregate, deshell and process into critical ingredients like vegetable oil and glycerine. Future Africa is delighted to back Releaf to build the future of modern agriculture.”
Dr. Nneka Enwonwu, Country Relationship Manager, from The Challenge Fund for Youth Employment (CFYE), said, “We are thrilled to partner with Releaf on their mission to improve efficiency and profitability for farmers and food factories in Africa. The founders’ vision and the team’s enthusiasm gave us confidence that Releaf will deliver real value for rural communities and create digital/technical jobs for women and youth. We are looking forward to their results and success over the coming years and continuing to support their work.”
54gene closes $25M Series B to Advance Global Drug Discovery Capabilities
African genomics startup 54gene has secured $25M in a Series B round, led by Cathay AfricInvest Innovation Fund. The round also included participation from Adjuvant Capital, KdT Ventures, Plexo Capital, Endeavor Capital, Ingressive Capital and others. This round brings the company’s total investment to date to more than $45M since being founded in 2019.
The new capital raised will be deployed to expand 54gene’s capabilities in sequencing, target identification and validation, and precision medicine clinical trials enabling drug discovery in Africa for both Africans and the global population. The new capital will also enable the company to begin its expansion across the African continent.
Dr. Abasi Ene-Obong, CEO, 54gene, commented: “It’s truly incredible to witness the impact of African scientists in global research, and it is critical to global health that this continues. We want to scale our contribution to global drug discovery by extensively developing life science capabilities on the continent, and this additional capital will catalyse our endeavours.”
Dr Ene-Obong continued: “In this round, we have brought in partners that keep us true to our mission of equalising healthcare and who can help us replicate our success throughout Africa. We believe the world will benefit from an African global drug discovery company that leverages the deep insights found in genomics research in diverse populations and ensures true equity for the African population. It’s exciting to see our company shift into the next gear as it targets becoming one of the top global companies in genomics research.”
54gene will also be expanding its genomics and molecular diagnostics division across Africa, ensuring that African patients get access to accurate diagnostics and enabling the application of precision medicine in the clinical setting throughout the continent. To lead this new business unit, the company has brought in Michelle Ephraim as General Manager Diagnostics Pan-Africa. Michelle has held various sales leadership roles across Africa for Leica Biosystems, PerkinElmer, and Merck Millipore.
Yassine Oussaifi, Partner at Cathay AfricInvest, commented: “As a pioneer in genomics and precision medicine in Nigeria, 54gene has built a unique health technology platform leveraging African resources to unlock scientific discoveries for the benefit of African and global communities. At Cathay AfricInvest Innovation, we’re dedicated to backing innovative, inclusive solutions that connect African technology and research with global innovation ecosystems to help them scale. 54gene works across drug discovery, molecular diagnostics and clinical trials, boosting access and affordability of various healthcare solutions that will positively impact worldwide. We look forward to working with the 54gene team on their development on the continent and beyond.”
Nokia and African Telecommunications Union (ATU) to Speed up Digital Transformation and the Knowledge Economy in Africa
Collaboration to leverage the power of ICT including 5G for Industry 4.0 (IR 4.0), connecting the unconnected and transforming lives; Both organizations reiterate commitment to shape policy, develop talent, and promote inclusion and diversity in Africa.
Nokia has signed a Memorandum of Understanding (MoU) with the African Telecommunications Union (ATU) to drive digital transformation and the knowledge economy for socio-economic development across the continent. The two parties will leverage the power of telecommunications, including 5G networks, to connect the unconnected and identify innovative use cases, as well as business models. In addition, the MoU will lay ground for both organizations to better help governments shape telecom policy, develop talent and promote inclusion and diversity. This includes women, as well as the underprivileged in both rural and urban areas.
The MoU was signed in Nairobi, Kenya, by John OMO, Secretary General at ATU and Rajiv Aggarwal, Nokia Representative and Head of Central, East and West Africa Market Unit at Nokia.
Announcing the partnership, Rajiv Aggarwal, Head of Central, East and West Africa Market Unit at Nokia, said: “We remain keen on supporting Africa’s digital transformation journey and by collaborating with the ATU, we strengthen this commitment. We will leverage our global technology expertise and insights on policy matters to positively impact the universal socio-economic development in the continent.”
Co-signing the MoU with Mr. Rajiv, John OMO, Secretary General of the African Telecommunications Union (ATU), said: “Our vision is to make Africa a full and active participant in the global information and knowledge society by enabling universal access to ICT systems and services across Africa. Collaboration with a global industry leader such as Nokia is therefore crucial in this regard and will help us accelerate towards a digital transformation and knowledge economy.”
The MoU framework is guided by six tenets designed to facilitate this acceleration. These are:
- Sharing of best practices on telecom technology trends and developments
- Identification of innovative industrial use cases toward the Fourth Industrial Revolution
- Recommendation on implementation of emerging technologies and business models
- Promotion of connecting the unconnected with broadband
- Development of emerging talent for digital innovation
- Promotion of inclusion and diversity
Nokia has a long history of collaboration with international organizations and bodies across the globe. Regionally in MEA, Nokia recently partnered with UN Women to promote inclusion and diversity in Middle East and Africa. Nokia is also working with UNICEF as part of a shared-value partnership in Kenya to connect schools with broadband and empower children in rural as well as disadvantaged urban areas. In November 2020, Nokia supported the Forge Academy in South-Africa with the launch of a fully inclusive artificial intelligence (AI) laboratory to help students to become entrepreneurs in the Fourth Industrial Revolution and the global digital economy.
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