Private Equity
Andrea Alms Video: Money In Motion 90 - JP Morgan Healthcare Conference 2024
January 2024 - Private Equity
TRANSCRIPT Hello, my name is Andrea Alms. I'm technology investor and financial manager and this is your money in motion. JPMorgan Health Care Conference 2020 1000s of health care leaders will descend on San Francisco for the annual conference to discuss some of the industry's most pressing topics, ranging from artificial intelligence and Medicare Advantage enrollment to health system investment strategies, according to Bain and Company, as the year 2022 ended, the number of strategic health care deals have declined by more than 30%, and the average deal size has fallen by about 15% in line with the overall corporate M&A activity.
It was largely a wait and see year. Then two megadeals were announced in the fourth quarter, namely GAO's $16.6 billion acquisition of a biomed in November and Amgen's $28 billion acquisition of Horizon in December. According to Leerink and Deal Logic, health care M&A activity declined in 2023, due in part to rising interest rates and persistent economic uncertainty. Pharmaceutical subsector remained the most active subsector of health care and represents 58% of the deal value and 33 33% of the number of health care transactions in 2023 versus 36% of deal value and 27% of number of health care transactions in 2022.
M&A themes Winners and losers. Oncology was the most active therapeutic area for M&A, with 11 deals totaling 49 billion in deal value. That is excluding the $6 billion deal. Pfizer announced $43 billion acquisition. A secret Rare diseases was the second most active therapeutic area for M&A, with nine deals totaling 13 billion in total deal value. This was the exclusion of BIOGEN'S $7 billion acquisition of Reata Immunology was the third most active therapeutic area for M&A, with seven deals totaling 25 billion in total deal.
Excluding this was excluding Merck's $10 billion acquisition of Prometheus Health care services transaction activity was significantly down for 20 2022, with 27 deals totaling 44 billion in deal value versus 71 deals it totaling 89 billion in 22, resulting in -44 deals and -49% health care. IT activity is also depressed for 2022, with six deals totaling 5 billion in deal value versus 21 deals totaling 25 billion in deal value in 2022, resulting in -15 deals and a -80% deal value from 2022 to 2023. Thank you. This is your money, your money, in motion.