HEALTHCARE M&A

The Healthcare M&A Index invests in companies which are to benefit from M&A potential (takeover targets and acquirers) as well as from long-term industry drivers and specific company catalysts in the healthcare sector

After two strong years (2014/15), Global Healthcare M&A decelerated sharply in 2016 due to a couple of powerful headwinds (regulations targeting US tax inversion, Trump’s election)

M&A deal activity in the industry should be back in force in the next few quarters, possibly beating the 2015 record as:

• the political environment has become more supportive (less noise from the Trump administration, clearer view from the FDA, and upcoming changes in US tax legislation)
• financing is abundant and cheap (secondary offerings made by Biotech companies over the last few weeks/months were filled in a few minutes…)

The forthcoming US tax reform should notably give a boost to mega deals as smaller ones are driven by fundamentals and are more immune to the political and tax landscape

With increased focus on personalized medicine and continued innovations from the Tech world (wearables, next-generation sequencing, etc.), MedTech is to top the M&A list