Healthcare Temperature Check report released by Jefferies

16 November 2021

Today Jefferies has published the Jefferies Healthcare Temperature Check Report, now in its fourth edition. The report is launched to coincide with the launch of the investment banker Jefferies’ Global Healthcare Conference in London, now in its 12 year.

Based on views from nearly 500 leaders across the sector, including healthcare executives, institutional and Private Equity investors, the key findings of the report include:

A surprisingly high 78% believe that COVID-19 is no longer a major theme in markets, with COVID-19 related disruptions chosen by only 12% as the greatest risk facing the sector. However, we have found growing worries of an economic recession, as demonstrated by 38% seeing this as the greatest threat to our industry, up from 29% last year.
Continued appetite for M&A, with many expecting an increase in activity in 2022 versus 2021. Corporate-led transactions are expected to be the most active, followed by deals undertaken by Private Equity
There are expectations of the strong performance in equity markets to continue, and within that healthcare stocks in particular. Nearly two thirds believe that the MSCI World Health Care Index will be higher at the end of 2022 than it is at the time of the survey. The 60% of institutional investors who predicted growth in the FTSE 100 last year have found their confidence well placed.
North America was highlighted as the geography presenting the greatest value opportunity, as identified by 74% of respondents. Reversing the trend for 2020, China was selected by fewer than a third of participants. The UK has seen an encouraging uptick in those believing it represents a value opportunity, rising from 15% to 21%.
Small and Mid-Cap Biotechnology is very clearly highlighted as the segment respondents expect to perform best over the next 12 months, selected by 49% of survey participants. Healthcare corporates are most bullish, with 55% seeing greatest potential in this segment.
Private Equity demonstrates an outsized preference for Life Science and Diagnostics, chosen by 25% of that audience, while institutional investors stand alone in their enthusiasm for Medical Technology, chosen by 22% of them.

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