Investments in Midwest health care companies rose 23 percent in 2012, but investments in Minnesota’s health care companies decreased 26.2 percent year-over-year, according to a new report.
 
The BioEnterprise Midwest Healthcare Venture Investment Report, released Monday, indicated that the region’s health care companies attracted $995.7 million in new investments across 182 companies last year—up from $809.7 million that went to 177 companies in 2011.
 
But Minnesota, where 24 health care companies collectively received $223.3 million in 2011, attracted just $164.7 million for 17 companies in 2012.
 
Still, Minnesota companies received the second-highest dollar amount among 11 states in the region, according to the report. It was outpaced only by Ohio, which garnered $291.7 million for 70 companies.
 
In 2011, Minnesota’s health care companies collected more dollars than any other Midwestern state. Within the past five years, the state’s health care companies received the most investment dollars in 2008, when $318.9 million went to 22 local companies.
 
“Investment activity in Midwest health care deals continues its upward trend, outperforming previous years’ activity for three years in a row,” BioEnterprise Interim President Aram Nerpouni said in a statement. “As with the rest of the country, Midwest health care investing fell dramatically in 2009 after strong years in 2007 and 2008, but it appears investors are again optimistic about Midwest deals.”
 
Out of the $995.7 million that the region’s health care companies collectively attracted last year, the greatest portion—50 percent—went to biopharmaceutical companies. Medical device companies received 32 percent of the total, and health care IT and service companies collected 18 percent.
 
“The Midwest typically sees more medical device companies than either health care IT or biopharmaceutical; however, biotech saw the largest influx of dollars in 2012 as investors continue to focus on later-stage biotech opportunities,” Nerpouni said in a statement. “Investment activity in Midwest healthcare IT remains robust as investors are drawn by payers and providers searching for applications to improve patient outcomes and efficiencies.”
 
According to the report, the other states in Minnesota’s region are Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Missouri, Ohio, and Wisconsin; it also classifies western Pennsylvania as a state.
 
BioEnterprise is a Cleveland, Ohio-based business formation, recruitment, and acceleration effort aimed at supporting the growth of bioscience companies. It provides management counsel and support services to health care companies.