Axios: “Private equity firms invested nearly $70 billion in the life sciences and medical device industries last year”
Today, the American Investment Council released a new report that highlights how private equity is playing an increasingly important role investing in medical technologies that improve people’s lives. This morning, Axios covered the report – please see key excerpts below.
Private equity’s pandemic era health care push
AXIOS
By Caitlin Owens
March 23, 2022
Private equity firms invested nearly $70 billion in the life sciences and medical device industries last year — a sign that the pandemic’s disruptions didn’t cool interest in the sectors, according to a new report by the American Investment Council.
Why it matters: The influx of capital could help bring more lifesaving drugs and medical technologies to market. But private equity’s growing presence in health care isn’t always viewed positively, particularly when it’s associated with price increases or reduced access to care.
By the numbers: Private equity deals in the life sciences sector were worth nearly $26 billion in 2021, the highest amount in a decade.
- Medical devices and supplies deals were worth nearly $44 billion last year, which was also the highest value over the last decade — by far.
- Private equity has invested more than $280 billion into the sectors over the last decade, according to the report.
What they’re saying: “What COVID brought was probably a bigger focus on health care gaps and needs in the country, and I think you saw more money going into this sector as a result of a new focus on exposing some of the challenges we have in the health care system,” American Investment Council CEO Drew Maloney said in an interview.
- “We really are filling a gap in the marketplace to bring these innovations to life through our funding mechanisms,” he added.
Read the full story here.
