International

Our firm has steadily increased our investments in countries outside of the United States, including investments made in China, Europe and, most recently, Latin America.

Essex Woodlands is well-positioned to invest in the China market given our recognized healthcare domain expertise and our global relationships and brand name.  The China healthcare market is growing rapidly due to a combination of factors, including an ageing population, strong economic growth, reforms increasing mass coverage, an expanding private pay market, and increased investment by all players.  The growth is currently focused on the pharmaceutical and medical device sectors as modern therapies become available and hospitals build infrastructure.  In addition, both investment opportunities and exit options are increasing.

The European healthcare space continues to remain attractive given the ageing population and the increasing demand for healthcare services.  Healthcare spending as a percentage of GDP in Europe remains below that of the US, while at the same time, governments across the continent face increased pressure to reduce spending and are faced with decreased economic activity and rising public deficits.  As a result, a number of European countries continue to experience an increase in the level of outsourcing healthcare services to the private sector.

The pharmaceutical sector is also evolving as reimbursement levels have come under increased pressure.  Increasingly, European countries are taking cost effectiveness into consideration prior to approving a product.  This has been a key trend and small incremental product improvements that bring little patient benefit are expected to continue to struggle.  This cost pressure continues to create opportunities for further market penetration of specialty pharma and generic drugs.  At the same time, increased focus is being placed on preventative medicine, molecular diagnostics and point of care testing, drivers which should benefit players in the medtech and devices area.

The current healthcare environment creates both investment as well as exit opportunities, in particular in the pharmaceutical sector as large pharma are affected by weak pipelines and tighter regulatory environments and are looking for opportunities in niche therapeutic areas and generics.  In addition to gaining access to pipeline and new products, large and mid size pharma players are seeking companies with a broad geographical footprint in Europe in order to commercialize those products.

Essex Woodlands is well positioned to capitalize in the opportunities in the European healthcare space given its successful track record across all these sectors and its global relationships with companies and top executives in the US and Europe.

Latin America also offers attractive investment opportunities in healthcare.  The high GDP growth, the need to improve healthcare for the rapidly growing middle class, the high growth in healthcare spending from a low base, and the fact that Western companies are increasingly seeking acquisitions to establish presence in the region all point towards a region ripe for investing.  Latin American companies are seeking Essex Woodlands’  expertise in acquiring products, on the Board of Directors, and/or helping to execute acquisitions and we are embracing the opportunities to expand our practice in this geographical region.