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Analysis

Life sciences and health care M&A Update: Q2 2024

Amid capital market uncertainties, life sciences companies are working to ensure they are ready for IPOs and M&A transactions once market challenges abate.

Life sciences and health care trends

  • Health care services
    The advent of AI-powered clinics-in-a-box, with features like biometric body scans and virtual doctor consultations, is set to revolutionize health care delivery in the long term.1
  • Health care technology
    AI’s use in health care is expected to grow 37.5% annually through 2030 and exceed $200 billion in value.2
  • Life sciences and pharma services
    Despite uncertainties, industry analysts are cautiously optimistic about 2024 with expected sustained M&A activity and potential IPO resurgence in the latter half of the year.3
  • Medical devices and supplies
    Digital therapeutic devices are set to grow by 29.8% annually in the United States through 2025, driven by increased demand for at-home diagnostics and self-testing.4
  • Payors and payor services
    Payers are grappling with rising costs from expensive therapies and labor shortages, potentially increasing employer insurance rates by 9% by 2024..5

This newsletter is a periodic compilation of certain capital markets information. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

References

1 Bernard Marr, “The 10 biggest trends revolutionizing healthcare in 2024,” Forbes, October 3, 2023.
2 Dan Ketchum, “Healthcare M&A: Market trends & opportunities to know for 2024,” CapLinked, March 14, 2024.
3 Barbara Tague, “M&A in healthcare: 2024 outlook,” AlphaSense, March 13, 2024.
4 Rhoena Endaya, “8 technology-driven healthcare trends in 2024,” LiveSwitch, June 26, 2024.
5 Monisha Machado-Pereira, “2024 payers outlook: Opportunities abound,” McKinsey & Company, December 18, 2023.

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