THE WRAP-UP // Deep Dive
The companies that get traction in the clinical trial space are companies that are delivering efficiency, taking cost out, and reducing cycle time. Those are the kinds of investments that should be focused on for any investor interested in this space. Michael Raymer CEO, Pro-ficiency
to medical specialists when needed. The primary care physician would continue to consult with the specialist and follow up on a patient’s care. Keran concluded the session by saying he is interested in hearing from attendees and others about what they’d think of adopting the Virtual First program.
Future of Healthcare
In the “Future of Healthcare” panel, three investment professionals discussed the changing landscape of technology in life sciences and pharma, and how it is fostering M&A opportunities. The panelists were Michael Raymer, CEO of Pro-ficiency, which provides clinical trial simulation-based training; Rick Riegel, CEO of Phlexglobal, a technology and services organization that addresses clinical and regulatory matters; and Rebecca Pigula, principal at CIL Management Consultants, which offers commercial due diligence and strategy advice for private
equity firms, banks and other corporate clients. The panelists agreed that the pharma and life sciences sectors have traditionally been slow to adopt new technologies. “They tend to be laggards compared to more forward-looking industries,” Riegel said. “They often will wait for technologies to be tried out in other industries and then adopt them. Then, there is a lot of fast following once a couple key industries do that.” Riegel said COVID-19 has prompted companies to be more open to adopting new technologies and ways of doing business, which he expects to continue in the post-pandemic era. “COVID has been an accelerant to the industry overall,” agreed Raymer who, along with Riegel and Pigula, said these spaces are ripe for investment. “As everyone knows, there is an unprecedented amount of investment capital available in the market
now, globally,” Riegel said. “The investors, whether they are venture capital or later stage private equity, are looking for the right harbors to put that money—the right investments.” While embracing novel solutions, Raymer cautioned against investing in a new technology in the clinical trial space and other areas merely for the sake of technology. “For too long, we’ve chased technology for the sake of technology,” he said. “The companies that get traction in the clinical trial space are companies that are delivering efficiency, taking cost out, and reducing cycle time. Those are the kinds of investments that should be focused on for any investor interested in this space.” Riegel noted that virtual or decentralized clinical trials are attracting a lot of interest, and companies in this area are experiencing unprecedented valuations. The drive for a COVID-19 vaccine brought attention to the pharma and life sciences spaces, and Pigula said other forces also are creating interest in these arenas. These forces include demand for new treatments for other diseases or health conditions besides COVID19, companies that offer different payment models for healthcare, and technologies that drive efficiency in drug delivery. “There are tremendous opportunities for businesses to help improve efficiency, improve adoption of drugs, and maximize revenue opportunities for pharma companies,” Pigula said. “It really is a broad market with a huge range of opportunities for investors.” The players in this space include both private equity investors and strategic acquirers that are private equity-owned.
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