Global health and population trends underpin an industry that is being rapidly disrupted by new technologies – wearables, connected systems and mission-critical healthcare software are addressing the multitude of demands necessary to be met in a modern medical and life sciences system.
Spanning life sciences, biotech and medtech, the vast sector is experiencing a seismic shift in the funding and modernization of a broad range of assets from consumer-facing apps and more advanced technology for healthcare workflows to electronic healthcare records and machine-learning backed data for disease prevention, communication services and host of other demands.
The result is a consistently growing number of M&A transactions that reflect this increased pace in innovation.
HealthTech M&A Market Report
A wave of deals in the thriving #healthtech sector delivered nearly $10bn in #mergers and #acquisitions. #TeamHampleton Market Report, published today. @ExpressScripts ' $3.6bn acquisition of @evicorehc the sector’s largest deal in 2H 2017. #MEDTECHhttps://t.co/2mAPfDYo5F pic.twitter.com/wZuboIB9a3— Hampleton Partners (@TeamHampleton) February 8, 2018
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"Despite the high level of M&A activity, which Hampleton believes will continue and most likely pick up speed, this period has been unremarkable in that most M&A activity has been conducted within the orthodox Healthtech sector.
But the reality is significant innovation rarely comes from within an industry — it's outsiders that have to break the mould. So, it's the movement of new players into the healthcare M&A market during 2018 that could be its most interesting feature with step-changes being driven the likes of Apple, Google and Amazon.
These and other companies have access to consumers, devices and data and vast resources to drive change even in a highly-regulated market and who have already showed an interest in this massive and complex segment. The response of the incumbents to a new competitive pressure will undoubtedly be to increase the intensity of their M&A activity with a resulting upward pressure on valuations."