Foreword
I am proud to present the sixth edition of the Jefferies Healthcare Temperature Check, our annual research report that explores the issues at the top of the healthcare agenda. Over 600 senior leaders and investors from the healthcare sector have given their views on the opportunities and challenges they see in the market, providing insight to contextualise all the exciting discussions we can expect at our Jefferies London Healthcare Conference.
Against a backdrop of market and geopolitical uncertainty, the healthcare sector has remained resilient. Looking ahead, our report suggests the sector is quietly confident; supply chain pressures are moderating, and nearly half of participants expect to increase their exposure to Healthcare in the next 12 months. Forward-looking confidence in the MSCI World Health Care Index is encouraging, with over half of overall respondents expecting it to be higher by the end of 2024. Institutional investors have the most conviction.
However, the environment for raising capital is again expected to remain subdued, as market conditions continue to be challenging. A lack of accessible capital is now highlighted as the number one risk the sector is facing, evidenced by the mixed outlook from respondents on expectations for the IPO market.
Our report suggests there is confidence that M&A levels will rebound in 2024, with two-thirds of respondents expecting dealflow to be higher than in 2023, driven by corporate-led activity. Sentiment towards Europe, in particular, is improving, with the region increasingly seen as a value opportunity for 2024 – with private equity investors the most bullish.
A big theme on everyone’s radar is the GLP-1 market, as companies across the supply chain work to position themselves within the growth opportunity it presents. Respondents in our report were measured amidst the noise and excitement. A third believe there are substantial risks related to the GLP-1 market, with a further third of the view that they need more information to be convinced either way.
Regardless, it promises to be a topic of fascinating discussion at our conference. We are excited to welcome everyone to London for the fourteenth time, as we gather leaders from across the sector to get together, share ideas and discover opportunities.
In the meantime, we invite you to read on to view the full report and watch the video content sharing views from Jefferies’ Healthcare bankers and analysts. I personally thank you for your continued support for the Jefferies London Healthcare Conference, now the largest healthcare-dedicated conference in Europe.