The report below gives a good overview of the Summer 2023 M&A activity in the Healthcare & Life Sciences Industry Sector. The global health care & life science services faced multiple challenges, including rising costs which involves labor and drug-related cost and supply cost, coverage shifts and regulatory changes coupled with supply chain disruptions, raw material price increases, and an inability to pass price increases through to customers during the period of 2022. The median cost of drugs stands at 5% in 2023, slightly higher than 4.8% and 4.9% in 2021 and 2022, respectively. Despite these obstacles, the industry has largely recovered from the pandemic and is expected to maintain solid demand. According to S&P Global, healthcare spending is projected to grow in the mid-single-digit percent range of about 4-5%. While material costs and supply chain challenges may impact margins, providers can pass on increased costs to payers and patients. Total healthcare costs are anticipated to increase by 62% in 2023, driven by cost inflation, clinical labor wage growth, and rising interest rates. However, the incorporation of digital technology is expected to bring significant cost savings of $1.5-3.0 trillion by 2030 through innovative solutions such as remote monitoring, artificial intelligence, and digitalization. Additionally, the growing geriatric population is expected to drive the growth of the diagnostic devices market, particularly in areas related to age-related diseases like cancer and diabetes.
Posted by Daniel Sirvent.
Read the Entire Summer 2023 Healthcare & Life Sciences Report Here