COVID-19 is reshaping global healthcare. How should investors respond?
COVID-19 is reshaping global healthcare
How should investors respond?
How has the pandemic impacted healthcare and biotech companies? The UK’s NHS has been stretched to its limit. COVID-19 has increased the waiting list for procedures from one million to four million, meaning that cancer screenings have been driven to a halt.
In a recent ‘Global Sector Series’ webinar held on 25 March 2021, Will Thompson, Head of Healthcare & Real Estate EMEA, Barclays Investment Bank, discussed how this had impacted healthcare. “There’s huge pent up demand for elective surgery and business to go back to usual,” he said.
“Through a UK lens the NHS waiting list has ballooned from one million to four million, causing significant concern around cancer screenings. We’re going to see provision and service areas (i.e. dental) bounce back quickly across the globe,” Thompson added.
Services and products have been disrupted. However, the development of new technologies such as artificial intelligence (AI) and robotics are transforming the healthcare sector’s pandemic response. For example, vaccine development previously took up to five years from bench to clinic, but using AI this now takes under a year.
Technology has revolutionised drug discovery – an industry that was previously one of the slowest to adopt digitalisation. There’s rapid growth across all verticals in the sector - in healthtech, diagnostics, pharmaceutical services, healthcare provision and services. This has led to plenty of interest from investors, from early stage venture capital financing, private placement and sector consolidation. There’s also been a pipeline of large IPOs supported by resilient valuations on the private and public markets.
From an India perspective, we’re starting to see the emergence of pockets of innovation occurring, particularly in AI and radiology.
Head of Healthcare and Consumer, Barclays India
Both demand and pricing has spiked across all Indian healthcare verticals. Despite remote working, there is efficient deal-making. Professional services have been busier than ever to support the rapid development of key Indian pharmaceutical players. Drug formulation and manufacturing is being led by India's expertise and there’s new growth and innovation pockets emerging.
Jayesh Visaria, Head of Healthcare and Consumer, Barclays India, was also a webinar guest. He said: “From an India perspective, we’re starting to see the emergence of pockets of innovation occurring, particularly in AI and radiology. The new technology developed allows for CT scans and X-Rays to be read without any human intervention and provide better results than traditional methods used over the last 20 years.”
This article is taken from our Global Sector Series webinars, bringing you the latest insights and debates on issues facing individual industries today. Read our article to find out more about how technological developments have revolutionised vaccine development. To learn more about opportunities for growth in healthcare, watch a replay of our Global Sector Series webinar.
Investments can fall as well as rise in value. Your capital or the income generated from your investment may be at risk.
- Has been prepared by Barclays Private Bank and is provided for information purposes only
- Is not research nor a product of the Barclays Research department. Any views expressed in this communication may differ from those of the Barclays Research department
- All opinions and estimates are given as of the date of this communication and are subject to change. Barclays Private Bank is not obliged to inform recipients of this communication of any change to such opinions or estimates
- Is general in nature and does not take into account any specific investment objectives, financial situation or particular needs of any particular person
- Does not constitute an offer, an invitation or a recommendation to enter into any product or service and does not constitute investment advice, solicitation to buy or sell securities and/or a personal recommendation. Any entry into any product or service requires Barclays’ subsequent formal agreement which will be subject to internal approvals and execution of binding documents
- Is confidential and is for the benefit of the recipient. No part of it may be reproduced, distributed or transmitted without the prior written permission of Barclays Private Bank
- Has not been reviewed or approved by any regulatory authority.
Any past or simulated past performance including back-testing, modelling or scenario analysis, or future projections contained in this communication is no indication as to future performance. No representation is made as to the accuracy of the assumptions made in this communication, or completeness of, any modelling, scenario analysis or back-testing. The value of any investment may also fluctuate as a result of market changes.
Barclays is a full service bank. In the normal course of offering products and services, Barclays may act in several capacities and simultaneously, giving rise to potential conflicts of interest which may impact the performance of the products.
Where information in this communication has been obtained from third party sources, we believe those sources to be reliable but we do not guarantee the information’s accuracy and you should note that it may be incomplete or condensed.
Neither Barclays nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation. Law or regulation in certain countries may restrict the manner of distribution of this communication and the availability of the products and services, and persons who come into possession of this publication are required to inform themselves of and observe such restrictions.
You have sole responsibility for the management of your tax and legal affairs including making any applicable filings and payments and complying with any applicable laws and regulations. We have not and will not provide you with tax or legal advice and recommend that you obtain independent tax and legal advice tailored to your individual circumstances.
THIS COMMUNICATION IS PROVIDED FOR INFORMATION PURPOSES ONLY AND IS SUBJECT TO CHANGE. IT IS INDICATIVE ONLY AND IS NOT BINDING.