2020 has certainly highlighted the value that a strong healthcare system can provide for a community. Moreover, due to the Covid-19 pandemic, healthcare systems and patients worldwide have turned to more creative solutions in order to deal with crises, deliver care when needed, and innovate as necessary.
Throughout this time, funding and investment in the healthcare industry has by no means slowed down. In fact, the need for innovation in a coronavirus pandemic-driven, socially isolated world has provided even more inspiration for investors to put their money into avenues which can provide viable solutions.
Famed consulting firm PricewaterhouseCoopers and CB Insights recently published a report highlighting the latest trends in venture capital funding for healthcare related industries. These key findings indicate where investors are focusing the majority of their time and efforts, and hence likely portray where the healthcare industry is moving.
Location
In terms of “dollars raised,” the report indicates that Silicon Valley, New England, North Central, San Diego, and the New York Metros are the top 5 regions for healthcare. In Q3 of 2020, Silicon Valley raised nearly $2.5 billion, with New England raising $1.9 billion. But this statistic is not entirely surprising, given the sheer amount of capital and technology talent that’s present in the Silicon Valley area. As some of the world’s largest technology companies are so heavily invested in healthcare, this makes sense. Furthermore, Silicon Valley has always been a “startup” hub, with executives easily transferring their talents from one firm to another, seeking to develop the next innovation. New England is no different, given that it is home to some of the largest pharmaceutical and biomedical innovation companies in the world.
WALTHAM, MA – NOVEMBER 23: The sign for AstraZeneca’s Waltham, MA offices are pictured on Nov. 23, … [+] 2020. According to the Associated Press, “AstraZeneca said Monday that late-stage trials showed that its COVID-19 vaccine with Oxford University was up to 90% effective in preventing disease.” (Photo by Jessica Rinaldi/The Boston Globe via Getty Images)
Boston Globe via Getty Images
Sectors
On a similar note, biotechnology is the leading subsector in healthcare investments. In Q3, investors poured nearly $3.9 billion into this subsector, marking an astounding 38% increase from Q2 2020, which raised $2.8 billion. The push for new innovation in biotechnology has never been more prevalent—ranging from new ways to develop and test treatments, to novel technological tools and interfaces for healthcare. The second heaviest area of investment was medical devices and equipment, with nearly $892 million raised.
The headquarters of biotechnology company Moderna is seen in Cambridge, Massachusetts on November … [+] 16, 2020. – US biotech firm Moderna on November 16, 2020 announced its experimental vaccine against Covid-19 was almost 95 percent effective, marking a second major breakthrough in the quest to end the pandemic. Moderna released early results from a clinical trial with more than 30,000 participants, after American pharmaceutical company Pfizer and its German partner BioNTech last week said their vaccine was 90 percent effective. (Photo by MATTHEW HEALEY / AFP) (Photo by MATTHEW HEALEY/AFP via Getty Images)
AFP via Getty Images
Deals
The largest healthcare deals in Q3 2020 were the following:
a. Bright Health—Value of Deal: $500 Million
b. Tizona Therapeutics—Value of Deal: $300 Million
c. Village MD—Value of Deal: $275 Million
d. Freenome—Value of Deal: $270 Million
e. Thrive Earlier Detection—Value of Deal: $257 Million
f. Recursion Pharmaceuticals—Value of Deal: $239 Million
g. Instil Bio—Value of Deal: $170 Million
h. Kronos Bio—Value of Deal: $148 Million
The last three of these, Recursion Pharmaceuticals, Instil Bio, and Kronos Bio are all listed as biotechnology companies, yet again driving the point that biotechnology leads the healthcare investments realm.
Overall, this report provides a very pragmatic yet illuminating picture of where investors are placing their money and time. Indeed, 2020 has truly ignited a fire in many to continue to innovate to solve some of healthcare’s toughest challenges. However, given the cyclical nature of healthcare, and the fact that new technology continues to drive forward medical innovation as quickly as it can get developed, these trends are by no means stagnant. Rather, as with any legitimate industry that fosters growth, healthcare will inevitably continue to undergo dynamic transformation in the coming decades.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
