Empowering Women’s Health: The Rise of Investment Opportunities in Women and Family Healthcare – SVB Leerink
Leerink Partners
Serving to our purchasers transfer healthcare ahead
Thought Leadership | Healthcare
At Leerink, we are sometimes requested concerning the state of the ladies and household healthcare market. Are there alternatives for personal capital? Is there development in its future? The info is evident, and the reply is a powerful “sure.” This market is massive, rising, and chronically underserved, regardless of making up greater than half the inhabitants. Ladies management 80% of healthcare spending choices and infrequently function the “Chief Medical Officer” for the house. Accordingly, we view the sector as encompassing healthcare companies and applied sciences that tackle the distinctive wants of girls and their youngsters.
Bias is pervasive in each medical analysis and the supply of care. In 1977, the FDA issued pointers banning most ladies of “childbearing potential” from taking part in medical analysis research. It took 16 years for the FDA to rescind this steerage, and girls weren’t required by legislation to be included in medical trials till the NIH Revitalization Act of 1993. However the shortfall persists: regardless of their inclusion, there are not any necessities for medical outcomes to distinguish findings on the idea of intercourse.
Society and cultural norms proceed to stigmatize womens’ our bodies. Most of the time, ladies’s ache factors are considered as a taboo, the place phrases equivalent to vagina, menopause, and pelvic flooring dysfunction are sometimes solely whispered behind closed doorways. Ladies require data and assist to handle their our bodies and begin advocating for themselves in a healthcare setting.
Ladies have distinctive healthcare wants which can be numerous, multi-faceted and can evolve over time. Most significantly, this area contains greater than only a lady’s skill or incapability to breed.
How, then, will we care for ladies all through their healthcare journey, from puberty by way of menopause and past? First, we should perceive the important thing well being milestones all through a lady’s life.
As one would anticipate, these phases dictate the therapeutic areas addressed, together with reproductive, menstrual, sexual, pelvic flooring, vaginal, oncology, bone, mind, autoimmune and cardiovascular. Whereas pelvic well being or menopause can span a number of a long time, some sides of well being wants, equivalent to IVF, contraception, or sexual schooling serve a objective at a novel time limit.
At every stage throughout the continuum of care, there are alternatives to assist enhance a lady’s well being outcomes. Remedy could embrace:
Whereas market alternatives inside OBGYN and Fertility are comparatively effectively understood, there’s monumental whitespace to assist ladies longitudinally. Specifically, we see curiosity in addressing pelvic flooring dysfunction, postpartum care, and mid-life care, together with menopause, to call a couple of rising funding areas.
The rising consciousness of, and funding in, feminine life phases coupled with extra expansive employer advantages, enticing payor contracting, and tailwinds from the COVID-19 pandemic and overturning of Roe vs. Wade have brought on a market shift in enterprise. Buyers have more and more put capital to work within the $100B marketplace for ladies & household digital well being.
Nevertheless, investments in ladies’s well being are nonetheless usually considered as “area of interest” and it may be difficult to push a number of ladies’s well being corporations by way of a agency’s funding committee. To fight this difficult backdrop, good founders are getting inventive in tapping alternate sources of funding, equivalent to household places of work, impression funds, authorities applications or different everlasting swimming pools of capital, a lot of whom are actively writing checks.
Lately, we at Leerink Companions carried out a proprietary evaluation on ladies and household healthcare enterprise funding since 2018. Enterprise funding within the sector peaked in 2021 at greater than $2.5B and stays considerably above pre-COVID ranges in the present day.
Regardless of the current market pullback, we’re seeing a number of high-quality belongings come to market and shut oversubscribed rounds, a number of of which have but to be introduced and are understated in consequence. This phenomenon is differentiated from what we’re seeing throughout the broader digital well being panorama.
Importantly, buyers are demonstrating an urge for food for investments outdoors of simply maternity and fertility. Whereas nonetheless early days, there was a rise in funding different areas, equivalent to sexual, pelvic, and psychological well being.
Personal fairness is turning into more and more bullish about an trade with important potential, each when it comes to outcomes and backside line impression. Service choices have expanded far past the standard OBGYN vertical and now embrace choices inside contraception, prenatal care, infertility companies, genetic testing and different donor companies. Mixed with growing affected person volumes, these expanded companies present a big alternative for personal fairness to deploy buy-and-build methods to determine holistic care platforms masking the total vary of girls and household healthcare wants. These scalable networks promote larger management of apply administration and affected person expertise, whereas demonstrating medical outcomes and elevated negotiation leverage with payors. From an M&A perspective, each tuck-ins and transformational transactions are on the desk, as evidenced by Unified Women’s Healthcare’s acquisition of Gennev
and US Fertility’s acquisitions of Ovation® Fertility and RMA of New York.
Though the market is nascent and never resistant to the headwinds going through different excessive development industries, we’re energized by the large alternative forward. Funding within the ladies and household healthcare sector will enhance well being outcomes, tackle systemic unmet wants, and ship enticing returns to buyers.
Written By:
Sasha Kelemen
Head of Ladies and Household Healthcare Companies and Expertise Funding Banking
Leerink Companions
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