A promising future for life sciences

Interesting conclusions can be derived from a recent study by Cat Cap corporate finance concerning life science investments. It describes current trends in relevant M&A-activity. One among them is that "medical care is shifting towards targeted medicine" ("personalised medicine") and another "healthcare providers are moving towards the patient". Taken together these statements spell a promising future for patients, health care professionals and investors alike. For the latter this could be a hint (albeit not a new one) which kind of companies to fund. Unless there wasn′t another trend stated: "Big transactions are concentrating on synergies rather than innovation".

As the implementation of "Personalised medicine" is not widely spread it could be considered an innovation. Thus not worth investing if one wants to exit to big pharma. Still, the term being coined approximately 1 1/2 decades ago is no novelty. Hence it should fit with big pharma. So how to treat it in terms of investing?

I believe that us life science investors should be looking for companies helping to further personalised medicine for obvious advantages. AND: at the same time seek out those exit partners for whom personalised medicine poses a synergistic advantage instead of an innovative threat ;-). Easily said, let′s roll up our sleeves and go for it.