Healthcare Services, MedTech and Pharma
HEALTHCARE
Growth engine of entire national economies
The healthcare industry is one of the most important and largest industries, ranking among the top 3 sectors of GDP in most industrialized nations and driving growth in entire economies. Many different healthcare companies are working together from different sectors to ensure patient satisfaction and better quality of care. These include the pharmaceutical, life science, care and health services, and medical technology sectors.
Complex market environment
The healthcare industry is more complex than ever and is undergoing profound upheavals that are creating special challenges for healthcare systems and even entire economies: The excessive density of regulation with constant changes and increasing requirements, demographic change with constantly growing demand for healthcare services, increasing cost pressure due to the shrinking number of employed people to cover statutory healthcare services, unprecedented medical-technical progress as a cost driver with an expansion of therapy options, the increasing shift of expenditures from statutory payers with greater cost sharing by private health insurers and patients. There is a need to improve healthcare systems, enable innovation, and reduce costs and complexity.
Continuous upheaval
For healthcare companies, these particular challenges of market dynamics mean that they must consistently align future-proof business models with the needs of patients, providers and payers in order to better exploit the many opportunities for growth, innovation and market success.
Healthcare providers are continuously working on improving their medical services, on new forms of services and care, and on better networking between different areas of treatment. In this context, medical and care facilities are increasingly relying on digitization to increase efficiency, more advanced diagnostic and therapeutic methods, and cost reduction. Service providers in adjacent device medicine, such as laboratories and diagnostic imaging, are expanding their network and using new technologies to map higher quality at lower cost.
Medical device manufacturers are developing innovative high-tech products to better support practitioners and create new diagnostic or therapeutic solutions, such as moving medical procedures to the outpatient setting. Medical device and consumer goods providers are adding value with innovative products and services to integrate more deeply into provider value chains and are focusing on more efficient distribution models in response to increasing customer consolidation.
Pharmaceutical and biotech companies are working with therapeutic innovators with well-stocked product pipelines, entering into international development partnerships to achieve therapeutic benefits, and optimizing commercialization according to country-specific requirements. Consumer Healthcare (OTC) providers focus on innovative end-customer oriented products and solutions, rely on international megatrends and diversified product portfolios with well-known brands. Pharmaceutical service providers support pharmaceutical marketing authorization holders as contract manufacturers, development partners or marketing agencies in order to reduce costs along the value chain through end-to-end services or strategic partnerships.
Insights: Regulatory – Billing – Digitalization
The healthcare market offers attractive investment opportunities even under high market dynamics. Companies in the medical and nursing services sector are often characterized by stable sales and earnings even in times of economic downturn. Although the industry is one of the largest, it is often a regional business due to nationally different regulatory regimes, and thus protected from market entry by international players. In many areas of service delivery, there is a high degree of fragmentation with many small facilities as well as high aptitude for consolidation and chain formation.
Our experience shows that for financial investors in particular, the areas of regulation and billing systems, in addition to the business model, often play a central role in the decision to invest in the healthcare sector. The high complexity of the legal framework, but also the often public discussion about the role of financial investors in the healthcare sector, require a clear strategy in the preparation and holding phase. In addition to these topics, however, technological innovations, their approval and the associated time and financial expenditure in the various global markets are also of decisive importance for the success of an investment, in addition to the digitalization of the industry.
Our industry expertise
Focus of our project experience in the sub-sectors
Health services, facilities & providers
- Medical practices: in the context of practice chain formation and consolidation strategies, we have worked for various specialist disciplines (e.g. general practitioners, dentists, dermatologists, radiologists, ophthalmologists, orthopedists, urologists, plastic-aesthetic surgery)
- Care service providers (e.g., outpatient touring care, out-of-hospital intensive care, inpatient care)
- Homecare companies (e.g., homecare mail order, homecare pharmaceutical therapies, homecare assistive therapies)
- Software vendors (e.g., clinical information systems, practice software, physician billing software, ambulatory care software)
- Distribution and logistics service providers (e.g. medical devices wholesalers, laboratory service providers, blood plasma logistics service providers, purchasing service providers)
Medical Technology, Medical Devices & Medical Consumables
- Medical equipment and component manufacturers (e.g. X-ray equipment, ophthalmic surgical lasers, dental CAD/CAM, support arm systems, endoscopy equipment, dental office equipment)
- Medical products (including wheelchairs, hearing aids, eye surgery products, rehabilitation products)
- Medical consumables (including disinfectants, practice/clinic supplies)
Pharmaceutical industry
- Generic drug manufacturers (e.g. international generic drug manufacturers, specialty pharma for branded generics)
- Original equipment manufacturer (e.g. specialty pharma for therapeutic niches)
- Consumer healthcare providers (e.g. vitamin D, dietary supplements, dermatologicals)
- Pharmaceutical service providers (e.g. active medical ingredient CDMO, pharmaceutical contract manufacturers)
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