Jan 28, 2016Jan 28, 2016

Why Healthcare?

getyourbreadup - Certified Professional
getyourbreadup O
Rank: Senior Orangutan 385
Subscribe

Hey guys,

I know I'm going to get heat for this, but why would someone choose to go into healthcare investment banking? I know it's one of those industries that will continue, but the volatility and unpredictability seems to be a deterrent.

Any info will help.

Log in or register to post comments
  • 2

Comments (11)

 
Best Response
7y 
Solidarity, what's your opinion? Comment below:
  • Active M&A environment centered around cost-managing and pricing leverage (merging hospital systems, PBM, biotech/pharma, insurance, e.g. Shire-Baxalta, Pfizer-Allergan, Aetna-Humana, Anthem-Cigna, UNH-Catamaran, the list goes on...)
  • Cost savings and operating efficiencies from consolidation of EMR/EHR platforms and emergent info tech
  • New and life-altering treatments are being developed for previously-economically-unfeasible drugs for rare diseases (Shire-Baxalta)
  • "Panacea" drugs with much greater effectiveness and safety profile for patients (adalimumab, sofosbuvir, etc)
  • Further fundamental changes in value model of drug development (Allergan, Valeant, etc)
  • Leveraging population health implementation brings challenges, promises huge value (Optum/UNH, etc)
  • Breeding ground for new technology and new models for Incentivizing human behavior to improve care and generate value (e.g. servicing noncompliant patient populations)

Massive industry disruptions are generally a good thing for investment bankers.

  • 14
 
7y 
dick_fluid, what's your opinion? Comment below:
Solidarity:

- Active M&A environment centered around cost-managing and pricing leverage (merging hospital systems, PBM, biotech/pharma, insurance, e.g. Shire-Baxalta, Pfizer-Allergan, Aetna-Humana, Anthem-Cigna, UNH-Catamaran, the list goes on...)
- Cost savings and operating efficiencies from consolidation of EMR/EHR platforms and emergent info tech
- New and life-altering treatments are being developed for previously-economically-unfeasible drugs for rare diseases (Shire-Baxalta)
- "Panacea" drugs with much greater effectiveness and safety profile for patients (adalimumab, sofosbuvir, etc)
- Further fundamental changes in value model of drug development (Allergan, Valeant, etc)
- Leveraging population health implementation brings challenges, promises huge value (Optum/UNH, etc)
- Breeding ground for new technology and new models for Incentivizing human behavior to improve care and generate value (e.g. servicing noncompliant patient populations)

Massive industry disruptions are generally a good thing for investment bankers.

wow sir, this is most useful. we should have such a post for every coverage group.
  • 5
 
7y 
worklogin, what's your opinion? Comment below:
Solidarity:

- Active M&A environment centered around cost-managing and pricing leverage (merging hospital systems, PBM, biotech/pharma, insurance, e.g. Shire-Baxalta, Pfizer-Allergan, Aetna-Humana, Anthem-Cigna, UNH-Catamaran, the list goes on...)
- Cost savings and operating efficiencies from consolidation of EMR/EHR platforms and emergent info tech
- New and life-altering treatments are being developed for previously-economically-unfeasible drugs for rare diseases (Shire-Baxalta)
- "Panacea" drugs with much greater effectiveness and safety profile for patients (adalimumab, sofosbuvir, etc)
- Further fundamental changes in value model of drug development (Allergan, Valeant, etc)
- Leveraging population health implementation brings challenges, promises huge value (Optum/UNH, etc)
- Breeding ground for new technology and new models for Incentivizing human behavior to improve care and generate value (e.g. servicing noncompliant patient populations)

Massive industry disruptions are generally a good thing for investment bankers.

I assume the Insurance mergers will fall under FIG and not Healthcare?

  • 2
 
7y 
SouthernAlpha, what's your opinion? Comment below:

It's usually both healthcare and insurance. Source: work in HC IB

I am a blogging intern at Wall Street Oasis. Feel free to follow me to see my weekly posts.
 
7y 
NESCAC, what's your opinion? Comment below:
DiamondsDancing:
Professor told me that healthcare will never be fixed; therefore, you will always be guaranteed a job there

Sadly, there's some truth to this.

 
7y 
thebrofessor, what's your opinion? Comment below:

not a banker, but we have a lot of clients in healthcare. a couple reasons make this an attractive industry:

  1. plenty of venture money interested in it, so early companies with interesting compounds/delivery methods will have capital available to them, so that takes care of early stage

  2. FDA is becoming very friendly to innovative drugs that cure a lot of diseases, like immunotherapies

  3. mature companies that own the molecules have cash to make acquisitions

  4. marketers generate tons of free cash flow to make acquisitions once the drugs become marketable

  5. pharma got really fat over the past 2 decades, but it has recently gotten leaner, with companies getting more focused, spinning off divisions, etc. this goes in waves, expect that cycle to continue.

Authored by: Certified Investment Advisor Professional - PartnerCertified Investment Advisor Pro
  • 4
 
7y 
iamfromcanada, what's your opinion? Comment below:

Quia ratione veniam fugit eos. Eaque accusamus omnis officiis officia aut aut. Quis exercitationem maxime praesentium est et. Et dolores est cumque sit. Magnam nulla fuga quas quasi ipsum ipsa.

Fugiat exercitationem repellat perferendis et magnam. Voluptates sunt quia magni vel rerum dolores saepe. Mollitia omnis non vel eum.

Eaque beatae ut sed aut rem eaque. Aut excepturi molestiae temporibus cum unde praesentium. Voluptas aut animi consectetur velit.

See All Comments - 100% Free

WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)

Authored by: Certified Hedge Fund Professional - 3rd+ Year AnalystCertified Hedge Fund Pro
Start Discussion

Popular Content See all

Career Advancement Opportunities

March 2023 Investment Banking

  • Lazard Freres (+ +) 99.5%
  • Lincoln International (= =) 99.1%
  • Jefferies & Company (▽02) 98.6%
  • Financial Technology Partners (▽01) 98.2%
  • William Blair (▲11) 97.7%
Access IB Report

Overall Employee Satisfaction

March 2023 Investment Banking

  • William Blair (▲05) 99.5%
  • Lincoln International (▲11) 99.1%
  • Canaccord Genuity (▲17) 98.6%
  • Stephens Inc (▲10) 98.1%
  • Financial Technology Partners (▲04) 97.7%
Access IB Report

Professional Growth Opportunities

March 2023 Investment Banking

  • Financial Technology Partners (▲05) 99.5%
  • Lincoln International (▲01) 99.1%
  • Lazard Freres (▲14) 98.6%
  • Jefferies & Company (▽03) 98.2%
  • William Blair (▲03) 97.7%
Access IB Report

Total Avg Compensation

March 2023 Investment Banking

  • Director/MD (6) $592
  • Vice President (27) $425
  • Associates (141) $260
  • 3rd+ Year Analyst (9) $194
  • 2nd Year Analyst (86) $170
  • 1st Year Analyst (266) $170
  • Intern/Summer Associate (45) $165
  • Intern/Summer Analyst (195) $92
Access IB Report

Career Resources

Leaderboard See all

1
redever's picture
redever		99.2
2
BankonBanking's picture
BankonBanking		99.0
3
pudding's picture
pudding		99.0
4
kanon's picture
kanon		99.0
5
Betsy Massar's picture
Betsy Massar		99.0
6
Secyh62's picture
Secyh62		98.9
7
dosk17's picture
dosk17		98.9
8
GameTheory's picture
GameTheory		98.9
9
Jamoldo's picture
Jamoldo		98.9
10
CompBanker's picture
CompBanker		98.9