Introduction
We are excited to release the third issue of our monthly newsletter Sector Spotlight
This is a comprehensive newsletter coupled with decks for the current or aspiring investment banker/PE investor, diving deep into the qualitative and quantitative nature of transactions, businesses, and trends across sectors, from the POV of an investment banker/PE investor. The groups are led by incoming investment banking summer analysts & analysts across a range of bulge bracket, elite boutique, and middle market banks.
Unlike other finance newsletters, this will not just simply mention or briefly summarize deals and news but will link to decks that include in depth analysis on a given topic. As this is the first issuance, we’ll be covering three sectors: 1.) Media & Entertainment, 2.) , and 3.) Healthcare. We hope you enjoy this month’s edition and look forward to bringing you monthly updates moving forward. Enjoy!
Best,
Jagger Lambert lambertjagger@gmail.com
James Concepcion jamesconcepcion217@gmail.com
Healthcare
Trends
- The FDA has approved Eli Lilly’s new obesity drug, ZeboundThe drug demonstrated na average weight loss of 18% surpassing Wegovy’s 15% in drug trialsAdditionally, Eli Lilly is constructing a new production plant in western Germany, investing $2.17bn; Lilly’s first major production facility in Germany
- Novo Nordisk is looking to expand drug portfolio by acquiring companies in their early-mid stage clinical developments.The firm is targeting deals in the range of a few billion dollars, however they are not seeking any transformative deals as the firm wants to retain funds for R&D
- CRISPR Therapeutics, and the CRISPR technology is revolutionizing biomedicine as well as agriculture. Clustered Regularly Interspaced Short Palindromic Repeats
- UK approves the world’s first CRISPR-based medical care
- The AI healthcare market is projected to grow to $2065bn in 2023
- The U.S. has a 58% revenue share in the global AI healthcare market due to increased private/government funding
- President Biden issued a landmark Executive Order stating new AI safety, security, and equity standards, inclusive of its use within the healthcare industry
- A survey of healthcare provider executives indicated an average increase of 18.3% in digital and IT budgets from 2019-2023, with on in five reporting increases of more than 30%
- The allocation for AI and machine learning in the healthcare sector is expected to reach 10.5% by 2024, up 5.5% from 2022. Recent research suggests that current AI technology could decrease annual healthcare spending by 10%, amounting to savings of around $360bn
M&A/Investments
- Bristol Myers Squibb will acquire radiological drug developer RayzeBio for $4.1bn
- AstraZeneca agreed to acquire Chinese cell therapy developer Gracell Biotechnologies for as much as $1.2bn
- Bristol Myers Squibb to acquire Karuna, a neuroscience drugmaker, for $14bn
- Health Care Service and Elevance Health are competing to acquire Cigna Group’s Medicare Advantage business, which may fetch over $3bn
- Danaher agreed to buy Abcam for $5.7bn in an all-cash deal, including debt (proceeds from the issuance on commercial paper) to help Danaher map complex diseases and accelerate drug discovery (See deck for an in depth analysis)
- German medical tech firm Carl Zeiss Meditec acquired Dutch Ophthalmic Research Center, a developer of devices for eye surgery, for $1.1bn
- AstraZeneca agreed to buy Icosavax, a developer of vaccines for respiratory viruses, for as much as $1.1bn
- Healthcare-focused PE firm Hildred Capital Management is set to buy bankrupt baby brand Hello Bello for $65mm
- AbbVie agreed to buy neurological disease drug developer Cerevel Therapeutics in a deal valued at $8.7bn
- Medical tools supplier Danaher completed its $5.7bn acquisition of Abcam
- Roche Holding agreed to pay as much as $3.1bn for Carmot Therapeutics, a developer of the new type of weight-loss treatments that have taken the market by storm
- Blackstone is exploring a sale of Anthos Therapeutics, a developer of a new generation of blood thinners, which could be worth several billion dollars in a possible sale process
- Japanese drugmaker Otsuka Holdings acquired US supplement maker Bonafide Health for $425mm
- AbbVie to acquire cancer treatment developer ImmunoGen for $10.1bn
