In the intersection of healthcare and artificial intelligence (AI), there is a promising landscape to invest in innovation, efficiency, and improved returns. As healthcare expenditure continues to surge, driven by an aging population and the demand for sophisticated treatments, AI can address challenges across clinical care delivery, non-clinical processes, and innovation across biopharma and healthcare.
A stronger-than-expected January faded throughout the balance of Q1. A sense of stability, and even some generalist engagement, around the end of the summer rolled into a bruising September pull-back that worsened in October.
Healthcare M&A activity declined in 2023 due, in part, to rising interest rates and persistent economic uncertainty. Biopharma was the most active healthcare subsector for M&A, while Services experienced the largest year-over-year decline due largely to a drop in financial sponsor activity. Looking forward to 2024, we expect Biopharma M&A activity to remain resilient as large pharmaceutical companies attempt to fill revenue and pipeline gaps via acquisitions of late- or commercial-stage companies. Furthermore, we expect to see more pre-commercial biopharma companies pursue strategic alternatives, including mergers, reverse mergers and cash-out transactions as a result of the challenging capital markets environment.
At Leerink, we are often asked about the state of the women and family healthcare market. Are there opportunities for private capital? Is there growth in its future? The data is clear, and the answer is a resounding “yes.”
This market is large, growing, and chronically underserved, despite making up more than half the population. Women control 80% of healthcare spending decisions and often serve as the “Chief Medical Officer” for the home. Accordingly, we view the sector as encompassing healthcare services and technologies that address the unique needs of women and their children.
The State of the Markets As the third quarter comes to a close, it’s easy to be optimistic about what the next several months may hold for the equity markets. With inflation moderating and Fed rate hikes nearing an end, major macro headwinds may be a challenge of the past, and investors can once again…
Two years removed from market highs, the reality of the Digital Health Downturn has set in. The public digital health companies have collectively traded down 65% since the highs experienced in early 2021.
Revisiting the dot com bubble burst of the early 2000s provides valuable insights when evaluating the current state of the Digital Health market. Over the past decade, the growth of the digital health sector has offered the…
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