Fast forward: Healthcare deals on the global horizon

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The healthcare sector is well positioned to see an increase in mergers and acquisitions (M&As) globally due to its perceived benefit as a safe haven both in the near and long-term future. In this inaugural issue of Healthcare Deals Quarterly, PwC states that the healthcare industry will attract an increasing share of deal activity as a result of its strong corporate balance sheets and significant private capital support despite a softer economic outlook in 2012. PwC highlights the following three key factors driving expected deal flow:

• Economic resilience, attractive demographic growth, and infrastructure build-out present a relatively safe investment for investors in a challenging macroeconomic environment.
• Within the sector, the declining value of incremental innovation implies a shift from investing in healthcare products such as drugs and medical devices towards technology and services.
• Innovative delivery models that offer better, cheaper, faster healthcare in countries such as Australia, India, and the Middle East are likely to attract new capital.