Why is healthcare/pharma sector so hot right now? Is it cyclical?

What changed in the healthcare/pharma sector? Why is it growing so rapidly? Most job openings in ER are in Heathare/Pharma/Medical.

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (13)

Jul 6, 2020 - 4:56pm

Speculating here... but would have to think it's in part due to the government funding that is flowing into these spaces to try and stop the spread of COVID-19 and ultimately find a cure. I'm assuming whichever company will be able to mass produce a vaccine will probably see a very large monetary benefit, and firms are probably trying to identify which companies to invest in based on this.

Following this to see if someone closer to the space can confirm.

  • Assist. VP in ER
Jul 9, 2020 - 10:05pm

COVID-19 is biotech bubble... No biotech analysts take seriously for COVID except for a few star vaccine and antibody players as COVID actually disturbs all the trials and readout planned and, therefore, the money raising events. Biotech has been compressed for its valuation multiple since 2015/2016 and now kinda bounce back, as Americans realize WW people are free ride USA innovation. With a new wave of technology coming from private companies and entering clinic, we have another 3 years of capital market open for biotech IMHOz

Jul 7, 2020 - 8:17pm

Covid and drug makers will be the big talk for likely the next year. Banks are hiring in healthcare as a result of this.

Few players recall big pots they have won, strange as it seems, but every player can remember with remarkable accuracy the outstanding tough beats of his career.
Jul 11, 2020 - 11:05pm

Facts. I'm on a HC team and we are adding people during the pandemic.

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
Jul 9, 2020 - 1:15pm

There are a few factors imo. There's a lack of supply of those with sciences/medical backgrounds in finance, the sheer number of public biotechs (around 1000 in the US) that can help generating banking revenues or corporate access business, and healthcare generally being a defensive sector with high growth areas like in biotech.

Jul 9, 2020 - 2:43pm

Just to add to it, there are specifics to the sector that make it harder to cover than others. The truth is, having a science/medical background really makes it easier to understand the actual products. (as used as an example in another post on here - if you look at Autoimmune as a class, you have JAK inhibitors, Anti-TNFs, T-Cell Inhibitors, Interleukin Inhibitors, PDE-4 Inhibitors, Corticosteroids, and NSAIDs, among other drug types), or how the drug process works from 1st steps to final FDA approval. While folks with any background can learn, the learning curve is a lot shorter for folks with that background.

  • 2
  • Assist. VP in ER
Jul 9, 2020 - 9:59pm

Agree. But immunology still is more to biopharma than biotech. Oncology is the biggest deal and that really require years of knowledge of pre-clinical and clinical data memory to play well in the field...imagine you have to be familiar with all PD1 PDL1 in development. :(

Most Helpful
Jul 10, 2020 - 5:27am

I don't disagree, but I think that using Immunology could be an easily digestible answer explaining the importance of a scince degree of a medical background. If I wanted to get technical here, Imunology has its biotech roots too. Look at Humira and Infliximab. These are biologics and when they were first introduced, they were at the forefront of biotech. Now, these aren't not Oncology products, and required a big understanding of clinical data when they were first launched too. Oncology is too vast a space to use as something that's easily digestible. I mean you have Car-T, PD1/PDL1, VEGF-A, Anti-CD20, etc. all targeting different subsetsof cancer. And in terms of knowledge, it's more about understanding to read and interpret than it is the nuts and bolts of a specific drug's preclinicals.

  • 4
  • Prospect in IB - ECM
Jul 13, 2020 - 5:25pm

Voluptates ducimus et ut autem dolore. Enim quia modi veniam voluptatem. Voluptatem unde quis omnis consectetur. Quae et eius deleniti sed. Et quidem fugiat unde inventore modi.

Quia sit est dolores beatae et et nisi provident. Perspiciatis recusandae dicta voluptatibus incidunt voluptatem sequi cum. Dolorem officia perspiciatis modi ut commodi et. Veritatis aut quaerat iure maxime accusamus et aut.

Start Discussion

Total Avg Compensation

September 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (38) $367
  • Associates (220) $232
  • 2nd Year Analyst (133) $153
  • 3rd+ Year Analyst (30) $147
  • Intern/Summer Associate (103) $143
  • 1st Year Analyst (484) $135
  • Intern/Summer Analyst (376) $82