Healthcare + Life Sciences

Wearable Medical Devices (Key Industry Trend)

Activity trackers help patients stay more active and healthier on their own while also monitoring health metrics reducing the need to visit doctors frequently.

Smart Technology & Data (Key Industry Trend)

Data on a patient’s background and conditions allow more personalization options, targeted treatments, and faster recommendations at hospitals.

Gene Therapy (Key Industry Trend)

The transplantation of normal genes into cells in place of missing or defective ones in order to correct genetic disorders. Growing trend using CRISPR to treat previously incurable diseases.

Price Transparency (Key Industry Trend)

As drug companies receive criticism on the rising cost of their drugs, more states are considering independent efforts to improve transparency in drug pricing and cost controls.

Government (Key Industry Trend)

More recently, legislation has focused on fixing the rising cost of healthcare and Medicaid in the US through increase transparency and competition.

Bundled payment, episode-of-care payment, etc. (Key Industry Trend)

Generally, describes paying for the whole treatment at once, rather than by individual tests or visits - an attempt to incentivize improved outcomes

Telemedicine Growth (Key Industry Trend)

Accelerated by the COVID-19 pandemic, telemedicine allows for remote consultations, increasing access to care, reducing wait times, and helping manage chronic conditions.

Shift Toward Preventative Care (Key Industry Trend)

There is a growing focus on preventative care to reduce the long-term costs of healthcare.

Orphan Drug (Important Terminology)

A pharmaceutical drug that remains commercially undeveloped due to limited potential for profitability as a result of a small curable population size

FDA - Food & Drug Administration (Important Terminology)

Federal organization tasked with protecting and promoting the safety of food and pharmaceuticals in the US. FDA approval is needed for almost all drugs sold in the US.

Generic Drugs (Important Terminology)

A prescription drug that has the same active-ingredient formula as a brand-name drug but sold at a cheaper cost. Typically occurs when name branded drugs lose patents.

Biotech vs. Pharmaceuticals (Important Terminology)

Biotech firms use live organisms like bacteria and enzymes to manufacture their medicines while pharmaceutical companies primarily use chemical synthesis.

Market Sizing (Important Calculations)

Top-Down: Total Population >>> Number with Illness >>> Number Diagnosed >>> Market share of Drug >>>> (Dosage per Time Frame) x Price per Dosage = Market size per Time Frame

Important Considerations

• Regulations

  • FDA Approval process length

  • Patent rights

  • Foreign government laws

• Competition / Cannibalization

• Drug Effectiveness

  • Cure vs. treatment

  • Time to market

  • Side effects

• Manufacturing capabilities

• Pricing, costs (fixed/variable), dosage