Health and Innovation: The Impact of Private Equity Investments Increasing life expectancy and global population, rising living standards on an international scale... The demand for access to healthcare has exploded in recent years, undeniably leading to a steady rise in healthcare expenditure. In fact, the OECD predicts that healthcare spending will outstrip GDP growth by 2030.
The Covid-19 pandemic highlighted the need to strengthen the resilience of healthcare systems, with the need to protect the health of populations, consolidate the foundations of healthcare systems, support healthcare workers and accompany patients.
The OECD has identified 6 priority investments, representing an average of 1.4% of GDP per country, to help reduce the overall increase in healthcare expenditure over the medium and long term. The OECD's priority investments are :
- Improving preventive care (which requires, in particular, the deployment of predictive artificial intelligence, as demonstrated by Idoven —which specializes in the early detection and precision medicine of cardiovascular diseases—and Screenpoint Medical, which facilitates the detection of breast cancer; both companies are part of the Vintage Altaroc Odyssey portfolio).
- Develop programs aimed at the general population.
- Sufficient basic equipment.
- Effectively leveraging health data (as exemplified by companies such as Overjet, whose artificial intelligence can analyze 18 months of X-rays to detect future cavities and identify potential dental diseases, and Iterative Scopes, which is revolutionizing gastroenterology technologies—both of which are also included in the Vintage Altaroc Odyssey portfolio).
- Adequate staffing levels in the healthcare and dependency sectors.
- Set up a health reserve.
Source: OECD Secretariat
Global growth in demand for medicines
As a logical consequence, the global pharmaceutical market reached $1,291 billion in revenue in 2021, up 6.8% from 2020. The United States is the largest market, accounting for 47.2% of global sales, ahead of Europe (24.5% market share), China (9.7%), and the Asia-Pacific region (13.2%). Oncology ranks as the leading therapeutic area by market share, followed by autoimmune diseases. Featured in the Vintage Altaroc Odyssey , this is precisely the niche in which the Chinese company Biotheus has positioned itself—a rapidly growing biotechnology firm focused on treating malignant tumors and autoimmune diseases.
Challenges for the healthcare sector over the next 10 years
The World Health Organization' (WHO) stresses that "health is an investment in the future [...] Leaders are not investing sufficiently in health priorities and essential health systems, putting lives, livelihoods and economies at risk. We need to promote domestic financing to fill gaps in health systems and health infrastructure, and support the most vulnerable countries. Investing now will save lives later - and money. We can't afford to do nothing because it would cost too much. Governments, communities and institutions must work together to achieve these fundamental goals. We can't take side roads to a healthier world. 2030 is fast approaching, and our leaders must be held to account for their commitments.
Investing in health: a fundamental choice for the future Altaroc
Altaroc has, from the outset, included healthcare as one of the key investment sectors.
As Frédéric Stolar, Managing Partner ofAltaroc , explains, "We're in a market where Tech and Data are creating new solutions every day, because the State, which has little room to maneuver, needs efficiency from service providers to lower the cost of services".
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