After another strong year for transactions in 2021, healthcare and life-sciences deal volume is expected to sustain a steady pace in 2022, according to investment professionals. Despite industry challenges with labor shortages, supply-chain bottlenecks, and inflation, investors are still actively competing for high-value targets, albeit limited in number, according to key news findings from the KPMG 2022 Healthcare and Life Sciences Investment Outlook Survey. Full report findings available here.
“While economic headwinds could always change the course of investor sentiment, it still looks like the strong momentum for deal activity we saw in 2021 will continue throughout all or most of 2022,” said Ash Shehata, KPMG national sector leader for healthcare and life sciences. “With the emergence of breakthrough innovations in COVID-19 anti-viral therapies, vaccines, and diagnostic tests, interest in life sciences and pharmaceuticals continue to remain high.”
The 2022 KPMG Healthcare and Life Sciences Investment Outlook features insights from a survey of more than 300 industry executives who provide their perspectives on how COVID-19, evolving market factors, and the policy environment may impact investment decisions in 2022.
Key survey findings include:
Areas of Capital-Deployment Focus in 2022
When it comes to deploying capital in 2022, healthcare investors said their key priorities would be improving operational efficiency and investing in joint ventures and creative stuctures. Life sciences investors expressed a strong desire to invest in innovative products and services.
“The pandemic forged a new paradigm, whereby pharmaceutical and diagnostics companies streamlined speed to market for critical drugs, vaccines, and diagnostics,” said Steve Sapletal, KPMG U.S. Healthcare and Life Sciences Deal Advisory Leader. “Whether organizations are investing externally to enhance their product or service offerings, or investing in technological capabilities to improve internal operational efficiencies, we expect that deals will be focused on supporting the new industry reality, one that is more digital and much more consumer-focused.”
Select subsector highlights:
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 146 countries and territories and has close to 227,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity, and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.