Baird Global Healthcare Report 2016-2017 Global Healthcare Report - Page 7

More recently an area that’s become exciting is nanomedicine, which is the manipulation of molecules and structures on an atomic scale. Microbiomics, which is the study of the microbiome and microorganisms in our digestive system, is also becoming quite compelling. Meanwhile, specialty pharmaceutical companies are exploring new drug delivery systems, such as microscopic particles called microspheres, and other ways to introduce drugs to the body versus injection. This is just a small sample of the subsectors driving investment and advancement in the space. BILL SUDDATH Advances in technology are definitely catalyzing deal activity and, as mentioned earlier, bringing nontraditional buyers into the industry. A notable example is IBM. Through their Watson machine-learning initiatives and investments, they are (in part) trying to build a very large healthcare data set, and then effectively feed Watson and create applications on the back end. Thermo Fisher has acquired several companies to accomplish this – most recently Affymetrix, and in a very significant transaction several years ago, Life Technologies. Another example is Merck KGaA, a large German conglomerate, which acquired U.S.-based Sigma-Aldrich late last year. MANISH GUPTA MedTech companies are also turning to M&A, but with greater designs on creating sophisticated medical solutions. We’re seeing MedTech companies acquiring technology companies and vice versa to create converged solutions that treat complex medical problems while reducing the overall burden to the healthcare system. A few examples of this include St. Jude Medical’s acquisition of CardioMEMS to develop a new treatment paradigm for heart failure, Covidien’s acquisition of Zephyr to develop remote patient monitoring solutions for cardiac and respiratory problems, and Jawbone’s acquisition of Spectros for noninvasive monitoring of pulse oximetry and detection of perfusion and ischemia. We are also seeing interest from companies looking to buy into Healthcare and build more of a vertical market strategy. But for the IBMs coming into the market, there have been others who have attempted to build vertical market strategies only to realize the Healthcare market behaves differently than perhaps their core enterprise markets. Additionally, we’re seeing equally robust private equity and growth equity interest in Healthcare IT and Tech-Enabled Services. Several very thoughtful private equity groups have done or are doing build-ups of capabilities around some of these themes. RYAN MAUSEHUND On the Life Sciences side, there has been quite a bit of consolidation with several of the big consumable suppliers seeking greater penetration with researchers, academic researchers, Biopharma and the like. H\H^[ [H]]8&\™][Y[\[H[XXK]8&\[™܈Y\[^\\H\X\\˂\\[\X][ۜ܈]\][B\\[ۈXYۛ\X]Y[ B