Aranca, a global research and analyst firm, on Tuesday launched its HealthTech Decoded 1H22 report on global Healthtech dynamics.
According to the HIMSS Future of Healthcare Report, 80 percent of healthcare providers plan to increase investments in technology and digital solutions over the next five years.
The new report has also revealed that the Drug Discovery sub-sector recorded the best half-yearly period in terms of VC deals, as deal value and volume increased by 25 percent and 2 percent, respectively, from 1H21 to 1H22.
“Several companies in this sub-sector managed to attract large VC deals. For instance, Resilience, a technology-focused biomanufacturing company, closed a deal worth $625M, the highest ever VC deal in this sub-sector. Management stated the company will invest heavily in developing new manufacturing technologies across cell and gene therapies, viral vectors, vaccines, and proteins, the company said in a statement on Tuesday.
According to the report, in the first half of the year, capital invested in HealthTech through VC, PE, and M&A deals (excluding two anomaly deals) witnessed a downward trajectory. Overall, the deal value shrunk 20 percent in 1H22 compared to 1H21, while the deal volume jumped 15 percent.
Moreover, Healthcare Booking Platform came forward as one of the most active sectors for investors. This sector raised around 50% of total funding during 2019–21.
For instance, Doctolib raised VC investment worth $557M, making it the highest-valued French startup across all sectors. Overall, VC investment in France accounted for 39% of capital invested in Europe. Thus, France has emerged as a new leader in the HealthTech space in the region, the company stated.
Interestingly, China, once the dominant player in the VC space in Asia, is now leading the decline in VC investments globally, driven by the ongoing COVID-19 situation and the uncertain geopolitical and macroeconomic environment.
In 1H22, 26 percent of the VC funding stemmed from China and 31% from India, making it a new market leader in the region. HealthTech funding cools down in 1H22, while the number of investments reached new heights as new subsectors with innovative solutions emerged.
The report has also pointed out that investment momentum in connected care continues to be on the lead for VC investors, as telehealth and patient monitoring are among the top trends of 2022. It is noteworthy that COVID-19 forced healthcare professionals to deliver care to patients from the remotest corners of the world.
Moreover, big software and tech giants such as Microsoft, Amazon, Google, and Oracle make a concerted push toward healthcare.
In June this year, Oracle acquired Cerner for approximately USD 28.3 billion, the largest M&A deal in the history of HealthTech. The acquisition may enable Oracle to capitalize on the emerging cloud opportunity in the healthcare sector.
The report also revealed that the global M&A deals decreased in the first six months of 2022 as the world’s major economies raised the interest rate to tame runaway inflation, grappled with the conflict in Ukraine, and faced a bearish stock market.
Meanwhile, 2Q22 has recorded the lowest quarterly number of deals in the last four years as dealmakers fretted about the growing probability of a recession.
ALSO READ | Dr. Mohan’s Diabetes launches AI-enabled platforms for diabetes care and treatment
