Healthcare Investment Banking Q&A

Oh boy loaded question haha. Let me see:

1. So last year was huge for HCIT. Record M&A, record healthcare issuance. A lot of strategics have realized these capabilities are tough to develop internally so they resort to buying. You no longer just see consolidation and only big HCIT guys buying the smaller ones - big tech and medtech players are acquiring HCIT companies as well. For PE buyers, consolidation still matters - it’s a great way to patch together a bunch of different businesses and offer solutions across a broad set of needs

1. Highly doubt it will slow down, especially with so many digital health VC-backed companies coming to life. There’s a ton of room to grow, healthcare is far from being great in this country, so new solutions keep emerging

1. Synergies, but that’s for all strategics, not just strategics in this space. Ability to integrate with existing solutions is also another big one. Also keep in mind profitability - some public strategics can get penalized by the market if profitability is really far out, so that’s what sometimes pushes them to sidelines. A lot of time the most aggressive buyers are sponsor backed strategics

1. Biotech hands down. People will keep being sick, and there is still so much opportunity. And yes, while the government keeps threatening with regulations surrounding drug pricing, the truth is that the US is an innovation hub and without proper incentives, R&D wouldn’t be a thing. If this topic interests you, I highly recommend reading Kolchinsky’s book - the TLDR for it is that insurance companies are to blame

1. I wouldn’t say it’s telemedicine specific, the market has been down in general, especially with generalist investors rotating out of healthcare stocks post COVID. I personally think telemedicine solutions are amazing, especially for mental health