Lazard Releases 2020 Global Healthcare Leaders Study
17 July 2020 - 12:00AM
Business Wire
- Most healthcare industry leaders expect
the pandemic to continue into the second half of 2021 or beyond
-
Lazard Ltd (NYSE: LAZ) today released its third annual in-depth
study of strategic challenges and opportunities in the global
healthcare industry, surveying C-level executives and investors
across three global sectors: Pharmaceuticals and Biotech; MedTech;
and Healthcare Services. This year’s study focuses on the industry
leaders’ response to the COVID-19 pandemic, including their
greatest concerns, challenges, and expectations.
The survey, conducted during the last week of May and first half
of June 2020, revealed that almost two-thirds of healthcare
industry leaders expect the pandemic to continue into the second
half of 2021 or beyond – a notably longer time frame than that
expressed by many government leaders. The healthcare leaders’
opinions are driven mainly by their expectations for the
development of an effective vaccine, which almost three-quarters of
them believe will not be widely available until the second half of
2021 or later.
“Healthcare industry leaders’ single biggest concern is the
availability of an effective vaccine to prevent infections. They
are sober about the length of time it will likely take to develop
widely available effective vaccines to bring the COVID-19 pandemic
under control, and they expect this will not happen until well into
2021, if not later,” said David Gluckman, Global Head of Lazard’s
Healthcare Group. “On the other hand, most are optimistic that
there will be a widely available vaccine. We are seeing
unprecedented levels of effort, collaboration and capital invested
at risk to accelerate finding a solution.”
“Although larger strategic transactions for healthcare companies
have become more difficult during this period due to factors such
as valuation uncertainty, the majority of executives believe the
pause will be followed by a surge in activity beginning in 2021,”
said Stephen Sands, Chairman of Lazard’s Global Healthcare Group.
“Strategic imperatives that were relevant before the downturn – the
need to propel growth and innovation – will remain the main
catalysts for M&A in the mid and long term.”
The study offers a variety of insights, including the following
selected highlights:
- 71% of healthcare leaders say the availability of a vaccine is
a top concern. 66% put the probability for a widely available
effective vaccine at above 50%. Slightly less than one-third put it
at between 76% and 100%. Only 9% put the probability at less than
25%.
- Views on the likelihood of an effective therapeutic treatment
diverge widely. Only 49% of healthcare industry leaders put the
likelihood of such a therapeutic at greater than 50%. About
one-fifth cite a 76% to 100% likelihood. But another one-fifth cite
only a 1% to 25% likelihood.
- Healthcare leaders expect a pause in deal activity in 2020 and
then a surge in 2021 and beyond, with expectations varying by deal
type. 89% believe large deal activity will be flat to down in 2020
relative to 2019. As many respondents say smaller deal and alliance
activity will be down in 2020 as those who say it will be up. 40%
expect smaller deal activity to be down versus 37% who say it will
be up. 34% say alliance activity will be down versus 37% who say it
will be up.
- Healthcare leaders cite confidence that the pandemic is
resolving (52%) and confidence in an economic rebound (45%) as the
top two factors that will catalyze a rebound in healthcare M&A.
These are followed closely by underlying drivers of M&A that
remain strategic priorities: the need for growth and innovation
(39% and 38%, respectively). Respondents also cite a return to
reasonable price levels and expectations (35%), and the opportunity
to diversify or strengthen competitive position (31%).
- Respondents’ top descriptions of a post-pandemic “new normal”
for the U.S. healthcare system focus on more efficient delivery of
healthcare to the patient: 75% of respondents expect significantly
greater use of virtual healthcare delivery; 40% expect an
acceleration of remote patient monitoring; 35% expect increased
delivery of healthcare in the home and other alternate sites; and
28% expect greater importance of data analytics, artificial
intelligence and machine learning.
The Global Healthcare Leaders Study surveyed 184 C-level
executives and 37 investors across
three sectors: Biopharmaceuticals; Medical Devices and
Diagnostics; and Healthcare Services. These 221 healthcare leaders
represent many of the largest healthcare entities globally, smaller
public and private companies, and prominent investment firms.
The Global Healthcare Leaders Study reflects Lazard’s approach
to long-term thought leadership, commitment to the sectors in which
it participates, and focus on intellectual differentiation. An
executive summary of the Study is posted at
www.lazard.com/perspective.
Lazard’s Global Healthcare Group advises senior executives and
boards of directors on strategic M&A, corporate preparedness,
capital advisory, and other strategic and financial matters. The
group is active in all areas of the healthcare and life sciences
industry, including pharmaceuticals, biotechnology, healthcare
services, and medical devices.
ABOUT LAZARD
Lazard, one of the world's preeminent financial advisory and
asset management firms, operates from more than 40 cities across 25
countries in North America, Europe, Asia, Australia, Central and
South America. With origins dating to 1848, the firm provides
advice on mergers and acquisitions, strategic matters,
restructuring and capital structure, capital raising and corporate
finance, as well as asset management services to corporations,
partnerships, institutions, governments and individuals. For more
information on Lazard, please visit www.lazard.com. Follow Lazard
at @Lazard.
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Media contacts:
Judi Mackey judi.mackey@lazard.com +1 212 632 1428 Clare Pickett
(US) clare.pickett@lazard.com +1 212 632 6963 Jenna Ward (UK)
jenna.ward@lazard.com Coralie Savin (France)
coralie.savin@lazard.com
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