News / Insights

M&A Insights: Healthcare Industry Trends

The 2021 trend in healthcare M&A is bullish at CDI Global. The Covid crisis has caused an excellent opportunity for both healthcare business buyers and sellers. Covid has resulted in companies doing better than they have ever done and seeking acquisitions for growth and dominance in their sector. At the same time, Covid has resulted in companies unable to maintain their supply chain or have lost too many customers to sustain profitability and are seeking to be acquired.

MedTech is the most exciting sector in healthcare with AI (Artificial Intelligence) technology leading the group followed by IoT (Internet-of-Things) and blockchain.

AI MedTech has brought medical care to a new level of accuracy, efficiency, and saving lives. For diagnosis, chest x-ray interpretation is available instantly 24 hours daily with higher reproducibility and accuracy than previously. AI is used for detailed pixel analysis of pathology specimens. For monitoring, detecting life-threating infection sepsis 24 to 36 hours prior to traditional monitoring and saving lives. For anesthesiology, an AI unit monitors numerous indicators for heart rhythm, blood pressure, and breathing for detecting changes in milliseconds enabling rapid response before life-threatening events occur.

IoT MedTech with wearables and smart phones is improving treatment, fast disease diagnosis, management of medications and medical equipment, and reducing errors.

Blockchain technology is improving supply chain management through security, mutability, and consistency for medical equipment such as MRIs, robotics, and ventilators. Blockchain technology will detect and identify fraudulent drugs and foods.

Medical devices are an excellent opportunity as companies continually improve functionality often by software and IoT.

Medical diagnostics laboratories continue to develop upgraded tests that will be more accurate with fewer false positives and false negatives. Genomic-based testing has created a new sector.

Specialty pharmacy is an active sector because the continual development of new complex medical treatments that need specialized equipment and trained medical staff for medication administration. The sector has been impacted by Covid resulting in companies seeking acquisitions for growth and dominance.

M&A healthcare is going to thrive during 2021.

- Dr. Gary Epler