M&A activity bounced back in a big way across many industries in 2021, and healthcare and life sciences (HCLS) was no exception, as the number and volume of transactions jumped well ahead of prepandemic levels.
Many in the HCLS industry expect that momentum to continue through 2022, according to our new report, even amid new concerns about staffing shortages, inflation, and supply chain disruptions against the backdrop of increasing global volatility.
The 2022 Healthcare and Life Sciences Investment Outlook draws from KPMG’s extensive research, surveys of corporate and private equity deal-makers, and the experience of our own deal advisers across nine HCLS subsectors. And while each subsector is different, there are common themes rippling across them, and none more so than the pandemic’s transformative impact on how the industry can operate and innovate going forward. Just a few examples:
The battle against COVID-19 has accelerated other scientific advances, with new methods for rapidly developing and testing new therapies and diagnostics—and new opportunities for biopharma and diagnostics companies.
The pandemic has also spurred rapid advances in telehealth and home health, jump-starting the evolution of delivery models across healthcare, from behavioral health and dermatology to virtual clinical trials. This is also now the main driver of innovation in health IT, setting up that subsector for continued double-digit growth.
The deep decline in elective procedures during the pandemic hit hospitals, device makers and specialty physicians especially hard, but many of these procedures are starting to return to prepandemic levels, and demand planning is swinging back the other way.