Navigation Links
Frost & Sullivan: Government Support Vital to Encourage Venture Capital Investments in the North American Healthcare Industry
Date:3/6/2013

MOUNTAIN VIEW, Calif., March 6, 2013 /PRNewswire/ -- Decreasing exit opportunities and a challenging fundraising environment give pause to venture capitalists (VCs) in the North American healthcare industry. The increase in average deal value implies that VCs are choosing their companies prudently, despite reduction in the overall volume and value of deals.

New analysis from Frost & Sullivan's (http://www.financialservices.frost.com) Analysis of Venture Capital Investment Trends in the North American Healthcare Industry research reveals companies that have completed Phase 2 or are nearing Phase 3 of trials are attracting VC investors because of the shorter exit period and fewer failure risks.

If you are interested in more information on this analysis, please email Britni Myers , Corporate Communications, at britni.myers@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

"Government initiatives such as tax exemptions, lower interest rates and subsidies will go a long way," said Frost & Sullivan Business and Financial Services Research Analyst Dr. E. Saneesh.  "This support will prompt VCs to invest more in new products and technologies."

Owing to the current straitened circumstances, an increasing number of VCs are signing joint investment deals and forming partnerships with bigger healthcare companies, including pharmaceutical majors and medical technology companies.

However, the long drug development period, increasing clinical trial risks, stricter regulations, and decreasing initial public offerings (IPOs) make VCs skeptical about investing in biotechnology and pharmaceutical start-ups. Further, as the pharmaceutical and biotechnology sectors become more mature, start-ups will require heavier investments. This is causing the pharmaceutical and biotechnology sectors to change from VC-driven to focus more on private equity funded opportunities.

"Increased competition and uncertain margins compel pharmaceutical companies to adopt alternate methods," noted Dr. Saneesh.  "These alternatives include strategic investments and venture investment arms to endow biotechnology companies that have attractive products in the pipeline."

Overall, innovations in drug delivery technologies, structural remodeling, and product stabilization are attractive to investors. Mobile health (mHealth) and healthcare IT, which can reduce delivery costs, will also draw VC funding.

Analysis of Venture Capital Investment Trends in the North American Healthcare Industry is part of the Business and Financial Services subscription, which also includes research services in the following markets:  Private Equity and Venture Capital Investment Trends in the Financial Services Industry in North America, Financial Assessment of the Global Insurance Industry, Clinical Trials Market in APAC, and Mergers and Acquisitions in the Asia-Pacific (APAC) Healthcare Industry. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Frost & Sullivan's Business and Financial Services group serves clients around the world in all aspects of financial analysis, market research and monitoring, due diligence, idea generation, opportunity analysis, investment valuation, and other proprietary research.

Connect with Frost & Sullivan on social media, including Twitter, Facebook, SlideShare, and LinkedIn, for the latest news and updates.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Analysis of Venture Capital Investment Trends in the North American Healthcare Industry

NB57-F1

Contact:
Britni Myers
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: britni.myers@frost.com
Twitter: @Frost_Sullivan
Facebook: Frost & Sullivan

http://www.frost.com


'/>"/>
SOURCE Frost & Sullivan
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Product Differentiation to Boost European Human Growth Hormones Market, Says Frost & Sullivan
2. Frost & Sullivan Recognizes KAERs Game-Changing Innovating Aerosol Drug Delivery Methods for High-Dose Respiratory Disease Therapeutics
3. Frost & Sullivan Recognizes GenePOCs Growth Backed by Strong Leadership and Technology Excellence
4. Frost & Sullivan Accolade for Swissrays Exceptional Dedication to its Customers
5. Novel Biomaterials Accelerate the Development of Innovative Wound Care Management Technologies, Finds Frost & Sullivan
6. Frost & Sullivan: Clinical Trial-based Evidence Vital to Obtain Venture Capital Funding for Wireless Patient Monitoring Technologies
7. Frost & Sullivan Acknowledges that PKCs Biosensors are Expected to Become the New Industry Standard in Pathogen Testing
8. Increasing Surgical Volumes to Boost Use of Tissue Sealants and Topical Haemostats, Says Frost & Sullivan
9. Frost & Sullivan: Digitisation of Australias healthcare system met with widespread apprehension
10. Frost & Sullivan Recognizes ResearchDx for Its Impressive Performance in the Companion Diagnostics Sector
11. Gains from a Growing Patient Pool for Cardiac Rhythm Management Devices Offset by Lower Product Pricing, Observes Frost & Sullivan
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/28/2016)... 2016  While Abbott,s announced purchase of St. ... repair and stent business, healthcare research firm Kalorama ... firmly into patient monitoring.  Kalorama said that patient ... areas, with double-digit growth expected the next 5 ... Remote Patient Monitoring . Abbott Laboratories agreed ...
(Date:4/28/2016)... YORK , April 28, 2016 ... online consumer insights on healthcare, announced today that it ... their report Cool Vendor in Life Sciences, 2016, ... April 15, 2016.  The report focuses on life-science- oriented ... gain insight from patients and doctors, confirm medication ingestion, ...
(Date:4/28/2016)... , April 28, 2016  ValGenesis, Inc., ... Management Solutions (VLMS) today announced that a ... for sufferers of chronic kidney failure has ... manage their corporate validation process. The global ... software solution to manage their validation processes ...
Breaking Medicine Technology:
(Date:4/29/2016)... ... 30, 2016 , ... World Patent Marketing , a ... an automotive invention that improves the storage features of a pick up truck. ... Scott Cooper, CEO and Creative Director of World Patent Marketing. "Over the next ...
(Date:4/29/2016)... ... April 29, 2016 , ... Since launching its ... charitable foundation serving the footwear industry, has broken all previous participation records in ... companies across 23 states during the months of April and May, the 2016 ...
(Date:4/29/2016)... ... ... Our bodies are bombarded daily by environmental and lifestyle factors that can ... to adopt a more healthful diet, but too many people think that food has ... and the creator of the Newport Beach Cleanse and 14-Day Eating Plan, disagrees whole-heartedly. ...
(Date:4/29/2016)... Torrance, CA (PRWEB) , ... April 29, 2016 ... ... physician advocating optimistic healthcare awareness and author of best seller "LOVE, MEDICINE and ... Talk Radio Monday, May 2, 2016 and podcasted thereafter . Dr. Bernie ...
(Date:4/29/2016)... ... April 29, 2016 , ... Coast Dental Fort Stewart is celebrating its grand ... in the Exchange Furniture Mall at 112 Vilseck Road in Fort Stewart. There will ... Plus attendees will have the opportunity to meet general dentists Thomas Richards, DDS, and ...
Breaking Medicine News(10 mins):