Outcome Capital argues that the orthopedic segment, and ortho in particular, remains highly attractive, as it offers investors stability, healthy multiples, and opportunities for innovation.
Published in MedTech Strategist
Author: Wendy Diller
Abstract:
Investors and entrepreneurs in recent years have gravitated away from orthopedics and medtech in general, toward splashier, hyper-growth subsectors of the life sciences, such as biotech and digital health. Outcome Capital argues that the industry—and ortho in particular—remains highly attractive, as it offers investors and entrepreneurs stability, healthy multiples, and opportunities for innovation.
This article examines the quiet but profound reset underway in U.S. biotech, triggered by a rare combination of forces: delayed or reduced federal funding, large pharma cutting mid-stage partnerships, and venture capital pulling back as exits evaporate. Based on insights from Dr. Stanislav Glezer, it reveals a market splitting in two — with capital chasing late-stage and very early assets while Phase 1–2 companies are stranded in the middle. The piece also exposes how government uncertainty, shrinking NIH support, and overlooked patient-behavior realities are forcing founders to rethink their entire company lifecycle. In today’s environment, survival requires new strategies, new geographies, and a deeper understanding of human factors that no protocol can fix.
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