During the COVID-19 pandemic, the US government imposed sweeping pandemic measures on the nation allowing millions of Americans to receive free tests, vaccines, and treatments aimed to prevent spread of a potentially life-threatening, highly contagious disease. These COVID-19 emergency declarations will end on May 11, marking a close to the US response to the global pandemic. With the end of the pandemic, the in vitro diagnostics (IVD) industry is confronting a reckoning-one that was predicable but is still painful.
Amid a deteriorating macroeconomic backdrop, orthopedic industry stocks have shown resiliency relative to the broader public markets. This enables management teams to breathe a sigh of relief, driven in part by expectations for a long-awaited pickup in procedure volumes, as they and investors have watched valuations tumble over recent years due to COVID-19 headwinds, supply-chain backlogs, and other industry forces.
As medtech companies modify their business practices and pricing models to draw out the maximum value of their integrated digital and medical device offerings and respond to customers’ concerns about high up-front costs of adopting new technologies, they need to discern the trade-offs and proper use cases.
Outcome Capital argues that the orthopedic segment, and ortho in particular, remains highly attractive, as it offers investors stability, healthy multiples, and opportunities for innovation.
Sustained investor interest in the diagnostics industry in light of the continuing COVID-19 pandemic drove initial public offerings in the Dx space in 2021, leading to more than three times as many IPOs in the space last year as in 2020.
As many diagnostics companies continued to benefit from high volumes of COVID-19testing, cash burned a hole in the pockets of many in the industry, and major players and smaller newbies alike picked up new businesses.
Private investors poured more than $8 billion into diagnostics companies between January 2020 and September 30, 2021, envisioning myriad opportunities for innovative COVID-19 testing technologies and precision medicine tests that help optimize individual treatment regimens.
The biopharma market has been highly active throughout the COVID-19 pandemic with a substantial focus on strategic alliances between 2020-H1 2021. Partnership deals present exciting liquidity and risk mitigation opportunities for early-stage companies. Small molecules still comprise the largest segment of partnered drugs, but alliances for other modalities are on the rise.
Outcome Capital has been following the pharma services market dynamics for the past 5 years. The authors believe that this fragmented segment will give way to greater consolidation by both financial buyers looking to roll up smaller players and larger contract research organizations seeking to expand into value-added specialty service areas. Adding to this consolidation is a tepid fund-raising environment, opening the door for financial buyers to play a role in consolidating many niche players.
The COVID-19 crisis shifted unprecedented resources to the diagnostics industry and presented a substantial growth opportunity for test manufacturers. A multitude of companies and entrepreneurs quickly pivoted toward developing innovative COVID tests, but whether they can survive post-pandemic exceptionalism remains to be seen.
Due to the risks, costs, and required specialization associated with research and development, acquisitions and partnerships have become powerful and frequently used tools for large pharmaceutical companies to ensure continued growth. Outcome Capital’s analysis of M&A by the largest pharmaceutical companies over the past three-and-a-half-years reveals some important trends.
CEOs must accept the reality that the success of their company is largely dependent on segment dynamics, in addition to the technology or their management skills
Are we in the midst of a transformational inflection point in scientific progress leading to meaningful improvements in clinical outcomes or are we witnessing irrational exuberance by investors and strategic players leading to unduly escalated asset values? Time will tell.
Management teams should adopt a top-down approach by developing a clear path to liquidity aligned with sector-specific market characteristics
Not long ago, tPA was the only front-line treatment for acute ischemic stroke. But a second generation of mechanical thrombectomy devices, including stent retrievers and aspiration-based reperfusion devices, has demonstrated significant efficacy against ischemic stroke, providing the impetus for renewed device innovation and new care delivery strategies.
Life science management teams fall victim to recurring mistakes and entrapments. This article discusses avoidable missteps in M&A transactions and their respective remedies.
Seeking venture capital (VC) financing for a young life sciences company is often a difficult and frustrating job, sometimes taking many months and too often ending fruitlessly.
Life Sciences mergers and acquisitions are typically based on perceived future value rather than objective financial parameters.
In a hard-hitting expert view piece, Dr Oded Ben-Joseph and Dr Shawn Manning, from investment bank Outcome Capital, advise on how life science companies can achieve shareholder objectives without falling into some common traps.
In an expert view piece, Dr Oded Ben-Joseph and Dr Shawn Manning, from investment bank Outcome Capital, advise on how life sciences companies can curtail risk by allocating time and money in a capital-efficient manner.
As members of a life sciences advisory and investment banking group, my partners and I have often noted that life sciences companies fall victim to the same mistakes and misconceptions, repeated again and again. These failures mostly hinge upon company management misunderstanding the fundamentals of market dynamics and failing to appreciate the importance of the exit…
We spent considerable time talking with biotech and pharma companies as well as academic research labs throughout the UK. Our aim was to get a more in-depth understanding of the local industry, its strengths, weaknesses and particular needs…
Highlights, Trends, Opportunities & Outlook
How The HealthTech Industry Is Entering A (Probable) Recession, And Ways Management Teams Can Navigate Newly Unchartered Waters
Outcome Capital shares their analysis and insights on pivotal trends and opportunities within the Pharma Contract Services sector.
Outcome Capital shares their analysis and insights on pivotal trends and opportunities within the Digital Health sector.
Outcome Capital shares their views, insights and data on key strategic trends and dynamics in the Medical Device sector.
Outcome Capital shares their views, insights and data on key strategic trends and dynamics in the biopharma sector. This segment is poised for significant growth, scientific advancement and consolidation.
Outcome Capital shares their views, insights and data on key strategic trends and dynamics in the life science consulting sector. This vibrant segment is poised for significant growth and consolidation.
Outcome Capital shares their views, insights and data on key strategic and financial trends within the Virtual Care, Population Health and Tech-Enabled Payor segments. These vibrant segment niches of the broader Digital Health industry are poised for significant investment and consolidation.
As a highly specialized life science advisory and investment banking firm, Outcome Capital looks to identify emerging trends that effect how researchers and clinicians understand, diagnose, and treat disease.
Outcome Capital sat down and spoke with Dr. Cathy Petti to get her perspective on the shortcomings of COVID diagnosis and how to carve out a stronger path for the future.
Outcome Capital sat down and spoke with Chuck Morrison to get his thoughts on the effects of the current COVID-19 pandemic on diagnostic transactional activity in 2020 and how best to weather the economic environment.
The In Vitro Diagnostic market values established companies with regulatory approval and market traction. This is demonstrated by premiums paid for acquisitions of companies that offer the opportunity to quickly capture market share and IPOs of companies with significant revenues.
This market update captures assets currently in development and recent partnering/in-licensing transactions which can catalyze development and improve valuation for companies.
The ophthalmology market values innovation approaches, demonstrated by premiums paid for acquisition of first-in-class therapies and public market support of ophthalmology gene therapy companies.
The cell-based therapy market will grow significantly, supported by recent clarity in the FDA pathway, improved clinical outcomes as well as market entry by big pharma.
Merger and acquisitions may be a path to creating value for life science companies, but talks can breakdown because of flaws in management thinking that skew their sense of the value of their company. Oded Ben-Joseph, managing director of Outcome Capital, applied behavioral economics to the M&A front to discuss how cognitive biases can derail M&A transactions…
The walking dead live, but it’s value, not brains, they are eating. So-called zombie funds, life sciences venture capital funds that are fully invested and unable to raise new money, still maintain their board seats. But Outcome Capital’s Managing Directors Oded Ben-Joseph and Arnie Freeman say their divergent interest from their fellow board members often lead to disputes that can end the life of promising technologies and lead to acquisitions that leave much value on the table.
Learn more about strategic transactional insights & market trends!
Learn more about strategic transactional insights & market trends!
Qorvo Biotechnologies said it is closing in on the launch of its point-of-care COVID-19 and influenza test as the firm works to expand its menu beyond COVID-19 and into syndromic panels and cardiac disease tests.
Companies that once rode high on the COVID-19 pandemic may now have to face the possibility of extinction in the coming years.
After two years of basking in the spotlight and money flowing into the industry as a result of the COVID-19 pandemic, financing for diagnostics companies has largely withered in 2022.
COVID-19 brought significant attention and investment to the diagnostic industry. Coming out of the pandemic new pressures and challenges await. Director Craig Steger shares his views and insights on how firms must be strategic and agile in this new paradigm.
Managing Director’s Oded Ben-Joseph, PhD, and Paul Mieyal, PhD, were interviewed by 360Dx for their views on capital markets’ current receptiveness towards COVID diagnostics companies and the viability of SPAC’s for life sciences firms.
Outcome Capital’s Managing Director Paul Mieyal, Ph.D., CFA was interviewed by BioSpace for his views on the recent popularity of SPACs in the biotech space. The interview covers historical perspective, current market dynamics, and outlook for the next year.
Navigating uncharted waters, biotech investors, executives and entrepreneurs are finding unique challenges (and opportunities) in a COVID-19 world. Contributing author, Outcome Capital’s Dr. Oded Ben-Joseph, Managing Director and Co-Founder of the Life Sciences Practice.
Partnerships and the move to value dominated the chatter at the BIO International Convention’s 25th annual partnering meeting on Monday in the life science hub of Boston.
Investors want to know: Will Big Pharma go bargain hunting, do a little M&A? Will it lift my biotech portfolio out of the gutter? Multiple factors are always at work. At the most basic level, pharma still needs to acquire new products to stay afloat. Little biotechs who create things need to be acquired, or go public, to reward their investors. Those facts never change. But there’s another powerful, and dark, force creating havoc in many biotech boardrooms. People who have witnessed it don’t like to talk about it. When they do, it’s in hushed tones…
While many in the medtech industry are struggling, BSX’s strategic M&A is enabling continued growth and market share expansion, with cardiology segment driving key growth and revenue contribution.
Leveraging differentiated therapeutic platforms, biotech companies leverage comprehensive product pipeline across various indications, attracting multiple strategic partnerships to enable rapid growth.
M&A and Tuck in acquisitions continue to provide inorganic growth opportunities for medtech players seeking to leverage current footprint and fast track product offerings.
Leading MedTech strategic players are aggressively seeking tuck-in opportunities in the post-Covid era to strengthen existing business units, with waning market sentiment presents unique timing for M&A as companies seek to deploy cash.
Dr. John Armstrong, Managing Director in Outcome Capital’s biotech practice, explains why he chose investment banking for the next phase of his career, and why he chose Outcome Capital, specifically.
Pioneers give us hope. At Outcome Capital, we thrive on supporting pioneers in the life sciences. You are what we live for. We help you get financed, partnered, and acquired. We are the ones working to ensure that the trails you blaze bring the rest of the world into the light.
Navigating the hyper growth of the digital sector presents a challenge to management teams in navigating a de-differentiated and highly competitive environment.
The secret to successfully raising capital is strategy – strategic positioning, targeting, and timing. Outcome Capital deploys strategy to get it right the first time so you don’t hurt your chances for the future.
Our strategic advice is based on data and on market-driven feedback. We want you to win, and if you have a coachable persona, we know that you will be open to professional strategic guidance toward maximizing your chances of reaching a liquidity event, whether that an M&A, strategic partnership, or equity financing transaction.
At Outcome Capital, getting you to exit and getting your technology to patients matters to us. When we engage, we don’t go to participate; we don’t go to try hard; we go to win, because winning matters.
Success in identifying strategic partnerships and transacting M&As deal in the knowledge-intensive and highly complex Biotech industry requires a multi-disciplinary approach from investment banking firms. The scientist-bankers at Boston-based Outcome Capital define a step-up from the ordinary.
World markets are looking to the diagnostic industry to rapidly diagnose and monitor the COVID -19 pandemic but the segment received limited venture support over the past several years. The COVID-19 crisis has shown that pandemics are real, their impacts on health and the economy are devastating, and it is through renewed innovation that we find relief.
As a specialized life science advisory and investment banking group, Outcome Capital is often in the unique position to see companies who have gone to market prematurely and consequently have been unsuccessful in either raising capital or seeking an acquisition partner. What management often does not realize is that the failure of these first-time efforts can leave the market with a tainted impression of their company
As the digital health segment is rapidly gaining momentum, entrepreneurs are advised to focus on technologies that clearly demonstrate improved clinical outcomes, or quickly and capital-efficiently integrate into hospital workflows toward reduce cost reduction.
Boards should consist of two key stakeholders: Investors, who have the financial ability to support the company and industry experts, who could provide domain expertise, external perspective, as well as a deep network.
Given that M&A transactions are pivotal in moving innovation from the laboratory to the patient, it is imperative that management teams understand that the selling of a company is an arduous, time-consuming, and a high-risk process. As members of a specialized life sciences investment banking group focused on private equity financing and M&A, we often note that life science management teams fall victim to recurring mistakes and entrapments. Below is a list of avoidable missteps in M&A transactions and their respective remedies:
The idea of CEOs “pitching” their company evokes images of detailed PowerPoint presentations and exuberant speeches. While intricate presentations given with dramatic flare might seem like an appealing route for entrepreneurs to take, seasoned CEOs leverage the opportunity to discuss their company, form relationships and receive invaluable feedback.
Whether in the early stages of attracting capital, or engaging in discussions with strategic acquirers, successful life science management teams are careful to make important distinctions when “pitching” their company. Below, are topics that are occasionally confused to the detriment of otherwise marketable technologies and companies.
Beginning with Roche’s acquisition of the balance of Foundation Medicine for $2.4 billion this past June, the long championed (yet unrealized) promise of the liquid biopsy market has begun to take shape. Investments and acquisitions in the space are undoubtedly only just beginning, and we look forward to seeing this market continue to mature and grow.
The public capital markets for life science IPOs today are in a fairly unique place. In Europe, the IPO market has remained relatively flaccid, characterized by an ongoing lack of tradable volume, limited ‘pools of capital’, and continuing wariness from institutional investors who have limited knowledge of the life sciences sector and therefore little appetite for such stocks. New Europe-wide financial market regulations (the now infamous ‘MiFID-II’) carry with them the prospect of an up to 75% decline in trading commissions, and the number of smaller stocks that are likely to be covered by Europe’s (few) remaining biotechnology analysts is limited and likely to remain that way. Thus, it is perhaps unsurprising that companies and shareholders are increasingly looking across the globe, to the United States and now beyond, for IPO opportunities.
Big pharma flight from anti-infective R&D will create significant challenges for early-stage biotech companies seeking to develop novel and much needed drugs in this sector, as opportunities for partnerships, joint R&D relationships, and merger/acquisition transactions are diminishing.
Big guns may have been fired up this week in the financing world with 6 of 12 Biotech IPOs debuting and raising more than $460M dollars. This figure however is dwarfed by the multi-billion dollar value of Merger & Acquisitions announced or offers made within healthcare during June to date — and the month isn’t quite over yet!
Many life sciences entrepreneurs have the mistaken belief that good technology is enough to gain funding, and ultimately commercial success. Interesting technology and research excellence provide a strong foundation; however, the aim of a successful business is not good science but achieving a tangible return to its shareholders.
Welcome to our blog dedicated to passing on the wealth of knowledge we have gained through our many years of advising and working with companies to carve out and follow their best path to success.
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