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But some subsectors, such as beauty, fragrance, residential services and medical spas, remained active as risk-off investors shifted deal activity toward categories they view as less discretionary, according to Leonhardt. Public markets, however, have been tepid, with the much-awaited IPO of L Catterton Management Ltd.
The short answer to #1 is that healthcare private equity firms operate in specific verticals with stable-ish cash flows, such as healthcare services, nursing facilities, medical devices, equipment, and healthcare IT. They do not invest in risky biotech startups attempting to cure cancer (at least not within their traditional PE portfolios).
But it wasn’t all carve outs and concerned investors – even with the headwinds in the industry and beyond, there were still several traditional public M&A deals involving biotechnology or medical device companies, as large pharmaceutical companies continued to have cash to deploy for acquisitions. Let’s dig in.
Strained access to public markets and funding The IPO market remained relatively inactive in 2023, leading many life sciences companies looking to raise funds to turn to other exit strategies. Additional major acquisitions of 2023 included Pfizer’s acquisition of Seagen for $43 billion and Merck’s acquisition of Prometheus for $10.8
Investment range: £50,000 – £3m Sectors: fintech, insurtech, regtech, digital health and medical technology, artificial intelligence and machine learning, consumer services, digital media, semiconductors and displays, cybersecurity, enterprise software, autonomous systems and human computer interfaces, novel materials and quantum technology.
approved prescription cannabidiol medicine to its portfolio. In November, Johnson & Johnson announced that it will split itself into two publicly traded companies , separating its pharmaceutical and medical devices businesses from its consumer products business. driven assets. time highs in 2021.
Similarly, we expect sponsors to actively pursue carve out opportunities – like Francisco Partners’ carve out acquisition of the data and analytics assets from IBM’s Watson Health business – in 2023 as tech giants streamline their portfolios to focus on their core businesses.
Overcoming Marketplace Uncertainty Rising interest rates introduced a difficult environment for private equity recapitalizations (where private equity groups sell a portfolio company to another buyer), so few of the older PE-backed ophthalmology organizations traded hands over the last few years.
their Enterprise Values are not worth much for a long time): Hedge funds focusing on public biotech companies step into this process after the IPO part, which means they can bet on extreme value inflections based on binary outcomes. If you have an advanced medical or academic background (e.g., or Ph.D.),
Portfolio optimization through divestitures of noncore assets In addition to pharmas smaller appetite in 2024, pharma companies continued to slim down by shedding nonessential assets to sharpen their strategic focus on core products. Similarly, Novo Holdings $16.5
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