Health Care

The long-term fundamentals of the healthcare sector remain strong, driven by several key trends: the increase in the number of seniors is leading to a greater demand for prescription medicines and care facilities; the vast-unmet medical need in many areas is fueling demand for innovative new medicines; and there is a concerted drive to reduce overall health costs.

There is also growing patient awareness, resulting in an increased expectation of better medicines and technological advances leading to new types of treatment. All of these key drivers are increasing the need for private equity and new investments to deliver more capacity and quality of care into the health system.

Sectors include:

Medical Devices and Technology: Opportunistic sub-sector deals await a range of devices, medical equipment and consumables, diagnostics and healthcare IT encompassing a means to identify the nature of health conditions and to allow intervention with methods that increase life span and/or improve the quality of care and life.

Healthcare & Provider Services: This is the largest and most rapidly evolving sub-sector within the global healthcare industry and includes activities such as senior, long-term acute and specialty care, including home health-care, in-hospital and in-community facilities, as well as outsourced support, clinical services and B2B contract services.

Pharma and Biotech: These two industries alone are expected to increase to approximately $1.092 trillion by 2015. A wide-ranging sector, investment opportunities exist in therapeutic areas including central nervous system, oncology, cardiovascular and antibiotics/antivirals. Opportunistic sub-sectors include: Specialty Pharma, generics, OTC, drug delivery and even animal health discoveries.

Digitization: Digital health is an emerging industry at the intersection of technology and health, radically changing how we access and use personal health information. It unites smartphones/tablets, with big data in the cloud. It enables interactive personalization through increased engagement with physicians forever transforming how we access and use personal health information.

With the advent of emerging tools that can transmit individual patient data quickly and accurately, the challenge will be to speed the process of research and development enabling rapid commercialization of new products. In the next decade, digital health will facilitate this fundamental shift.

Across the world, the upward trend in healthcare spending is relentless. In short, a wide range of opportunities, from drug discovery and medical technology; to acute and long-term care services will continue to drive the overall health care sector. Changing legislation, coupled with increasing demand for more precise diagnostic capabilities, and improved treatment systems will help drive new investment opportunities.

We remain focused on sponsoring businesses that own or are further developing IP-protected products, with reduced technical and regulatory risk and established route to further revenues and profitability through leveraged distribution networks. This is where venture capital and private equity can play a vital role.

In the areas of growth capital and buyouts there are clear business models of interest to Lexington: asset/facilities-based businesses, businesses based on distribution networks that can be leveraged; companies with innovative technology that are able to deliver treatments or services in a different and more effective way; and companies built around good, long-term contracts within the health system.

At Lexington, our expertise helps eliminate drawn-out, lengthy capital searches with false starts, or inappropriate capital decisions. Our mission is to provide the highest quality of financial advisory, capital raising, and debt placement services for all viable financing options.