The healthcare technology sector has seen extraordinary growth as indicated by a recent report from Nina Capital, which reveals that global exit values for healthcare technology companies have skyrocketed from $24.7 billion in 2023 to $46 billion in 2024—a striking increase of 85.9 per cent. The report highlights a robust market environment, asserting that the number of exits exceeding $1 billion has more than doubled over the same period, escalating from five in 2023 to eleven in 2024.
Nina Capital, an international venture capital firm dedicated to advancing healthcare through technology, has stated that 'the numbers speak for themselves'. Marta G. Zanchi, founder and Managing Partner at Nina Capital, emphasised the importance of investing in healthcare technology: “Not only has healthcare outperformed the S&P by 2x over thirty years—we are at an inflection point." She further noted that investments in this sector not only generate financial returns but also have the potential to significantly impact millions of patients' lives, citing that their portfolio has benefited over 10 million patients.
Notable acquisitions in 2024 include Shockwave Medical, acquired by Johnson & Johnson for $13.1 billion; Retina Consultants of America, acquired by Cencora for $4.6 billion; and Axonics, fetched at $3.7 billion by Boston Scientific. Other major purchases unveiled include Carebridge and Procare Solutions, acquired for $2.7 billion and $1.8 billion respectively. Comparatively, 2023's leading exits featured Syneos Health at $7.1 billion and NuVasive at $3.1 billion.
In terms of geographical distribution, the United States dominated the market, accounting for 68.8 per cent of exits, while the United Kingdom produced 5.2 per cent. Other regions contributing to the exit landscape included France, Canada, and Germany, along with a minor presence from some Asian countries such as Singapore, India, and Japan. Acquirers predominantly hailed from the United States, although notable mentions included Swedish firm Getinge and Danish company Novo Nordisk.
The report also sheds light on the evolving landscape of venture-backed startups in Europe compared to the US. In the past two decades, European startups have increased their footprint, growing over tenfold since the early 2000s. Despite this rapid growth, the US maintains a strong lead in overall venture capital investment, with $130.9 billion invested in 2018 across 9,000 deals. Nevertheless, Europe's VC investments surged from $5 billion in 2013 to $23 billion in 2018, signalling a critical shift in potential market dynamics.
Dr. Zanchi articulated her observation concerning future trends, stating, “What’s clear from the data is that the current landscape offers a unique opportunity for not only increasingly distributed innovation and improved patient outcomes but also substantial financial returns." She forecasts a more international distribution of exits by 2030, projecting that companies outside of the US will account for over half of the total acquisitions in that year.
As advancements in machine learning, data science, and information technology continue to shape the healthcare sector, analysts are closely monitoring the potential disruption of traditional business practices within the industry.
Source: Noah Wire Services