European Investors Continue Actively Investing In Healthcare

LONDON, May 20, 2020 /PRNewswire/ -- Optimum Strategic Communications (Optimum), the international strategic healthcare communications firm, today announces results of its survey of European Venture Capital (VC) investors and the impact of COVID-19 on the Healthcare Sector. The survey held in May 2020 includes responses from 24 of the most influential European VCs, investing approximately EUR 15.5 billion in aggregate in the Healthcare Sector. Of these, six have recently raised new funds totalling circa EUR 2 billion in 2019/20.

The COVID-19 pandemic has impacted us all in ways that were impossible to predict just a few months ago. The backdrop of limited face-to-face meetings and travel has affected levels of due diligence, raising the question of how this will impact investments in the Healthcare Sector.

The survey findings show there is a substantial amount of money available for investment in European companies and investors are seeking and reviewing new opportunities. Crucially, the survey reveals how it is strategically important for companies to adapt to the new 'virtual norm' to ensure that they are communicating a strong and compelling investment story. Now more than ever, clear and open communication, local connections and investor syndicates will be in focus.

Report Highlights

In addition to the marked impact of COVID-19 on business and operational activities in the Healthcare sector, our findings reveal:

    --  Investors are proactively looking for new investments and many are
        expecting to devote more time to them. Although many invest globally and
        tend to focus on Europe and the US, nearly 30% of investors are focused
        solely on Europe including the UK.
    --  All VCs are actively looking to invest. Of those funds disclosing
        current cash status only one had deployed over 50% of available funds
        with two thirds having deployed less than 30%.
    --  Europe remains a core focus area for VCs and many believe that
        throughout the COVID-19 pandemic and with subsequent travel
        restrictions, geography and local VC investor-led syndicates will become
        even more important. Many funds are indication agnostic and typically
        invest two-thirds biotech and one-third medtech. Companies looking for
        funding even in the longer term need to be prepared to talk to investors
        early.
    --  Overall, investors have not changed their investment foci (where they
        exist). Whilst investing in COVID-19 projects where it makes sense is
        seen as viable and important, there is (crucially) still a focus on many
        areas across a broad spectrum including oncology, immunology, innovative
        modalities / platforms, first-in-class, rare diseases, CNS,
        anti-infectives, vaccines etc.
    --  Investors want companies to focus on deliverables and prudently manage
        cash runway; strengthen the balance sheet through raising finance from
        existing investors, opening rounds to other investors or doing deals
        earlier.
    --  Investors believe in the next 12-18 months the impact of delays in
        clinical trials and knock on effect on milestones will be the biggest
        issues for the industry. Clinical trial delays and logistics will
        dominate everything and the industry will need to manage expectations on
        drug development timelines.
    --  While there has been no slow down on the rate of M&A/partnering to date,
        some investors believe this will be affected in the future as
        pharmaceutical companies focus on managing the impact caused by clinical
        trial delays. Furthermore, investors think there is likely to be a
        reluctance to travel, even when the lockdown is over. Investor focus
        will be on doing deals within their familiar geographies.
    --  One dynamic positive from the pandemic is that we are already seeing
        major changes to how healthcare is delivered and importance of
        telemedicine and digital health. Investors believe that this will lead
        to a re-evaluation of the Industry and a better understanding of the
        strategic importance of healthcare and innovation which will be a boost
        for R&D and manufacturing.
    --  In the markets, the Healthcare sector is already seen as defensive and
        majority of investors believe it will be more immune to economic
        downturn than other sectors. There is an increased interest in the
        sector which should lead to more generalist investors engaging in
        Healthcare stocks / companies.

Commenting on the survey, Mary Clark, Managing Director, Optimum Strategic Communications, said:

"The pandemic has brought the Healthcare Sector into the spotlight like never before. Governments and the general public now realise the importance of innovation and healthcare. While companies are facing disruption and adjusting to the new normal, it is important to take stock of the business, your assets and employees and plan for the period ahead.

"There is more money available for investment in European healthcare companies than ever before. Investors are proactively looking for new investments and many are expecting to devote more time to new investment ideas. Whilst it is going to be harder to meet potential investors and/or industry partners face-to-face, investors will be looking at independent information sources such as the media or peer reviewed journals. It is essential to ensure that your story is known and to create a buzz and excitement around what you are doing. Now more than ever, European companies need to be communicating a strong and compelling investment story to ensure that they are on the radar and followed closely by the investment community."

If you would like to receive the complete report, please email contact@optimumcomms.com.

About Optimum Strategic Communications

Optimum Strategic Communications is an international strategic healthcare communications firm which specialises in investor relations, corporate and financial communications. Our senior team of healthcare specialists are experienced and trusted advisors to some of the world's most exciting public and private companies, both large and small, across pharmaceuticals, medtech, biotech, health tech and healthcare services.

Over the last 20 years we have worked with over 200 healthcare companies, advising them on financial communications and investor relations, including major corporate activity such as fundraising, IPOs, and M&A, as well as corporate reputation and crisis scenarios.

We have an exceptional network of contacts across the international investment community in Europe and the US; contacts we have built and maintained over the last two decades. Our team includes ex-fund managers and equity analysts, scientists and financial and corporate communications specialists.

We specialise in developing clear outcome driven strategies with tailored communications programmes to help clients achieve their business goals. Our experience of analysing, investing and writing about healthcare companies uniquely enables us to help our clients build a compelling investment story. While our knowledge of the global healthcare industry, combined with in-depth research and analysis, enables us to provide our clients with informed and creative advice.

For further information:

Optimum Strategic Communications
Supriya Mathur, Shabnam Bashir
Email: marketing@optimumcomms.com
Tel: +44-(0)-20-3923-9425
Twitter: @OptimumComms
LinkedIn: optimum-strategic-communications
Website: www.optimumcomms.com

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SOURCE Optimum Strategic Communications