On a global basis, healthcare represents one of the largest categories of both private and public spending. Today, healthcare expenditures equal approximately 10% of global GDP. This percentage translates into annual market expenditures exceeding USD 7 trillion and makes the industry one of the most important economic sectors for transaction activity.
Populations in Western countries are living longer and staying active later in life. In transitioning [and developing] countries the tremendous growth and influence of the “consumer class” has changed the perspective on healthcare investment. Product innovation has accelerated around the world and market segments have expanded to include new areas such as alternative medicine, mobile healthcare and healthcare IT. These factors, along with many others, have resulted in highly attractive opportunities for established players and new entrants. At the same time, mounting budgetary constraints and austerity measures faced by many publically funded healthcare systems have created significant headwinds for the industry with cost pressures, declining margins, and changes in legislative and regulatory frameworks.
Strategic alliances, acquisitions, and mergers are often a key strategic initiative to benefit from economies of scale, gain access to new geographical markets, or broaden research and development pipelines. This reality is especially evident in the small- and mid-cap segment where a high level of M&A activity has been recorded.
Our deep understanding of the market dynamics and industry logic, combined with the global reach of the Corporate Finance International, positions The CFI group as your partner for international alliances and cross-border M&A transactions in the mid-market.
Cure & Care
The challenges associated with integrating strict cost and quality control measures into care systems tasked with meeting the changing needs of ageing societies have created the demand for new forms of financing, collaboration, and growth alternatives. The high investment required for medical equipment and technology has made capital raising and the realization of economies of scale a key strategic objective of many Cure & Care institutions. the CFI group, by offering access to cross-border sources of financing, as well as profound knowledge of medical technologies, helps clients meet these challenges.
MedTech & Life Sciences
Suppliers of medical devices, technologies and disposable products are confronted with two divergent industry trends. On one hand patient and clinician demands, along with technological advances, have led to the development of more complex and integrated solutions delivering higher clinical value and economic margin. On the other, consolidation of the market for standardized products, along with decreasing margin levels and a shift of production to low-cost countries has created multiple financial challenges.
The MedTech & Life Sciences sector covers diverse areas of the Healthcare industry including biotech and pharmaceuticals. All of these segments are characterized by one major common feature: the extremely high risks and capital requirements involved in the research, development and commercialization of new products and technologies.
Our presence in Europe, North America, and Asia, combined with our members' understanding of the dynamics of the Healthcare industry, enables the CFI group to support clients with a well-grounded evaluation and implementation of strategic options. We have successfully assisted multiple MedTech & Life Sciences clients in finding strategic partnerships and external sources of financing.
Driven by increasing cost pressures in the Healthcare sector, Generics constitute one of the fastest growing product segments in the industry. Various trends, including thinning pharmaceutical product pipelines, the increased prevalence of bio-similars, and the emergence of complex international global supply-chains will change the face of this industry. Generics will continue to be a global business and the industry will continue to undergo consolidation. The members of the CFI group combine unique Generics expertise in the key regions North America, Europe, and Asia, to optimally support clients in the internationalization and consolidation of the Generics sector.