For those of you with experience in Healthcare industry coverage, which HC verticals do you find to be the most prestigious and gainful long term (as concentration areas)? If you had an opportunity to select your area of focus, which vertical(s) would you select and why?
Prospective areas: Acute Care, Managed Care, Healthcare IT, Diagnostics, Lifesciences Tools, Distribution/PBMs, Pharma Services, Pharma, Biotech and MedTech.
Any specific thoughts on which areas are typically run out of San Francisco vs. New York?
Any specific thoughts on which firms excel in various verticals?
Looking forward to having a good discussion on Healthcare IB.
- Monopolisf
Very new to the industry, but I work in a small life sciences boutique. While not a hard rule, we are avoiding deals in diagnostics and distributions. Also, when reaching out to partnering candidates, I have seen a lot of responses from VC's and big pharma saying that they are very focused right now on Biotech, Medtech, and lifesciences tools. Those are the hottest right now.
Can't speak for prestige or regional activity, but just seems to be the the current temperature.
PE tends to deal more with the services sector (acute care, ambulatory services, home health, etc) and some HCIT. Obviously not a hard and fast rule, but if you're ultimate goal is PE, then you might want to focus on that vertical as you're more likely to interact with sponsors. However, spec pharma has been exceptionally busy as of late and the deal experience gained from these deals will be invaluable anywhere you go. Biotech is always busy. LS Tools & Dx has been slow as of late (in my experience), but still a very interesting sector.
It ultimately depends on what your end goal is, I'd imagine. Most of this stuff is run out of NYC and though I'm biased, I think it's objectively true that JPM, GS, Barclays and BAML have the best healthcare dealflow on the street.
Most of the biotech and biopharma deals are run out of SF, so if you're interested in those verticals or you want to do healthcare VC then that may be better
Any specific thoughts on Medical Devices? There have obviously been several very large M&A announcements in the sector this year. Is "Medtech" a respectable vertical with decent long term prospects relative to other sectors of the industry? Are Medtech offices typically based on the west coast along with pharma/biotech?
You've used the words "prestigious" and "respectable".
Are you looking for a vertical that makes money or one that gives you prestige?
I am trying to develop a perspective of the relative attractiveness of the various healthcare verticals with regard to long term sell side deal flow. I am also trying to identify which verticals, if any, should be avoided. I will likely have an opportunity to select my area of concentration. Medtech is a potential alternative as are some of the services verticals.
Medtech, services, and biotech are hot from what I've heard.
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