Market & technology updates.

Market & technology updates

'Lifestyle' medicine -- driven by big dollars and increasing risk

By DIANA TUCKER

BB&T Contributing Writer

MINNEAPOLIS -- The largest amount ever -- $2.7 billion -- was invested in med-tech companies in 2006, with the 1Q07 figure of $1.1 billion already trending to top that figure. That med-tech investing total represented 10.2% of all U.S. venture dollars in 2006, and 1Q07 again already tops that percentage so far, at 15%.

These numbers highlighted the opening remarks of Ralph Weinberger, a partner with the Technology Industry Group of PricewaterhouseCoopers (Minneapolis) at the 6th Annual LifeScience Alley/International Business Forum (Minneapolis/IBF; Long Island, New York) held here last month. Weinberger added: "Over the past 11 years of tracking this type of data, 2006 also produced, on average, the largest sized deals."

Against this backdrop Phil Nalbone, senior research analyst for RBC Capital Markets (San Francisco), cited a large cloud behind med-tech's silver lining: "It has also become a difficult area to invest in, with challenges never greater, especially in terms of highly regulated, reimbursement-driven, intellectual property-mediated issues. All of these things mean more investment risk."

With the abundance of money flowing into med-tech companies, come higher expectations for delivery of success. Although investor receptivity and curiosity in this sector is the highest ever -- because the …