Advisers who understand your sector
Our Healthcare sector team combines a broad range of experience across the pharmaceuticals, medical devices, healthcare services, healthcare insurance, hospital and care home industries. Members of our advisory team have worked in an operational, management or advisory capacity for a wide variety of companies in the sector, including:
Key Healthcare market themes for 2016 H2:
Focus on Outcomes
Much more R&D around medicines is being driven by a desire for better outcomes. Insurance companies are beginning to refuse coverage of some treatments due to spiralling costs. This has lead to a pursuit of targeted and specialised therapies.
Shareholder Activism Leading Strategy
Shareholders are creating top-down pressure on pharmaceutical companies to increase focus on value creation and improved performance through acquisitions, JVs and divestitures.
Pharmaceutical Costs Soar in the USA
The cost of prescription medicines in the USA is a contentious issue and prices are often three times as great as in the UK. This is due to the fact that a free market system of price setting is allowed in the USA, unlike elsewhere where there is greater regulation. Presidential candidates Clinton and Trump have pledged to reduce these costs. The counterargument is that this move will reduce the amount of innovation pharmaceutical companies can afford to bear, although the country undertakes a third of global drug spending despite just 4.5% of the world’s population.
International M&A trends & market analysis
The following Healthcare sector market data and commentary are produced by our market research team and global Healthcare sector specialists as part of our semi-annual all sectors global report. The data are organised into all Healthcare businesses valued over $5m “All Market” and Healthcare businesses valued in the range $5m to $150m the “Lower-Mid Market”.
Historic valuation trends:
The following chart shows international Healthcare sector business valuations over time, based on semi-annually averaged transactional data:
Regional valuation variation:
The following chart shows international Healthcare sector business valuations by region, based on listed company multiples as at 20 September 2016:
Sub-sector valuation variation:
The following chart shows international Healthcare sector business valuations by sub-sector, based on listed company multiples as at 20 September 2016: