• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • UK / Ireland

Investors shift focus on healthcare funding

Investors are increasingly looking to minimise risks in healthcare
  • John Bakie
  • 14 September 2011
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

Medical industries are often seen as a safe haven for investors in difficult times, proving to be robust and anti-cyclical as consumers cut down on luxuries to maintain spending on life’s essentials. But there are two very different stories in today’s market. John Bakie investigates

This week saw the successful completion of one of the world's largest ever life science funding rounds. Worth an eye-watering $150m it dwarfs many buyouts of established and profitable companies. The US-based company, Valeritas, is producing a disposable insulin delivery device for patients with Type 2 diabetes.

The news suggests life science businesses are largely immune to the trials of the global economy, and life science and healthcare companies are often seen as being robust in the face of an economic downturn. While consumers are able to cut back spending on clothing, cars and electronics, they are somewhat more reluctant to make similar cuts to spending on their health. Governments are equally loath to make major cuts to healthcare funding for fear of a public backlash.

As the graphs below show, some impact was felt from the aftershocks of the financial crisis, but healthcare and life sciences were not as badly affected as many other sectors, and companies operating in these sectors could expect to continue receiving funding despite the generally poor investment environment.

Volume and value of European early-stage deals in life sciences and healthcare

However, interestingly unquote" data suggests that, while life sciences and biopharma investment has declined since the financial crisis, healthcare providers and services have seen an increase in investment, becoming a boom this year. So far this year, total investment in healthcare providers and services has already hit levels seen in 2009 and 2010 at €124m.

While substantial funding rounds for life sciences companies do still go ahead, many investors now believe the fundraising model is too risky, and are instead opting for companies who provide related services to obtain exposure to the health sector. Andrew Elder, partner at Albion Ventures, says "we look to back service providers active in healthcare, with good revenue streams and that are unlikely to fall within the scope of government cut-backs."

Funding major drug development projects can be an expensive and long-term undertaking for any investor, and carries the risk that any new drug will fail to pass clinical trials or may even simply not work at all. When given the choice between such high-risk activities and companies which already have a stable cashflow, it's easy to see why investors are approaching healthcare with caution.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • UK / Ireland
  • Southern Europe
  • Benelux
  • DACH
  • Nordics
  • France
  • Healthcare
  • United Kingdom
  • Albion Ventures (formerly Close Ventures)

More on UK / Ireland

Fund closes in US dollars
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • Funds
  • 05 September 2023
Clinical trials and biotechnology
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • Buyouts
  • 04 September 2023
Public sector software
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • Exits
  • 04 September 2023
EMEA Public to Private M&A
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • Investments
  • 04 September 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013