Why Life Sciences?
INVESTING IN LIFE SCIENCES IS INVESTING IN THE FUTURE OF OUR HEALTHCARE.
Investing in the healthcare sector has never been more important. Ageing populations and increasing life expectancy means that medical technologies, drugs, diagnostic tools and research & development are developing rapidly. The UK’s life science sector, generates over £60 billion* and 220,000* jobs for the UK economy each year, providing products which the NHS and UK patients rely on every day.
Providing funding to the companies who are working to improve our lives and the lives of our future generations offers much more than just a financial opportunity.
Deepbridge Syndicate is focussed on providing funding to Life Sciences companies with high growth potential and global ambition, and we have built a highly experienced Advisory team to ensure we select the best opportunities within this vital sector.
WHAT DOES LIFE SCIENCES INCLUDE?
The companies which feature on Deepbridge Syndicate will all fulfil the necessary criteria to sit within the Deepbridge Life Sciences EIS, which seeks to fund companies with exciting growth technologies that satisfy the needs of large and growing markets. With a combined cross-sector commercial experience of over 200 years, the Deepbridge Life Sciences Team will be responsible for selecting, establishing, and managing the investee opportunities of the Deepbridge Life Sciences EIS.
The overarching focus of the Deepbridge Life Science EIS is to offer investors companies engaged in the following areas (but not restricted to):
- Medical devices
- Diagnostic technologies
- Sensor and monitoring equipment
- Healthcare medical equipment
- Healthcare information technology.
Deepbridge employs strict investment criteria in preparing and reviewing the investment opportunities it sources from its wide dealflow network. Generally, Deepbridge seeks investment opportunities that exhibit the following qualities:
- A focus on life sciences and medical device technology;
- Significant market potential with clear need and market growth;
- Provide a solution to a recognised clinical or healthcare need;
- Innovation-driven products that have the potential to create new market segments or displace current technologies;
- Medical technology businesses with a clear and realistic path to commercialisation;
- Robust intellectual property which may provide patented or patentable IP protection;
- Passionate, energetic, experienced and aligned founding team; and
- Clear exit strategy to be implemented within 4-5 years with alignment of interests with our stakeholders.
Deepbridge will take an active executive role on the Board of the investee companies to utilise the strengths and commercial experience that the Deepbridge team possess in order to accelerate the growth of the investee company.
THE MARKET OPPORTUNITY
Demand for Healthcare is a fundamental pillar of civilised societies. Some 17% of GDP in the world’s biggest market in the U.S. is spent on healthcare, with Western Europe pegged on 10%** whilst in emerging economies and the rest of the world demand is rising. Importantly, healthcare spending is broadly independent of the economic cycle. The rising wealth in emerging economies such as China, India and Brazil will inevitably open up new opportunities for medical and biopharmaceutical companies eager to secure new markets for emergent and established medical technologies. The Pharmaceutical market is expected to exceed $1.7trn by 2025 whilst the medical technologies (including medical devices and patient monitoring equipment) market will exceed $583bn. Healthcare IT should exceed $202bn, Medical equipment and in-vitro diagnostics $57bn, Biopharmaceuticals $121bn, Vaccines $48bn, and Cell & Gene therapy $21bn.
The UK may only be the fifth largest country in Europe in terms of population size, but its well-established biopharmaceutical and medical technologies industry continues to make a significant input into worldwide research and development. As outlined in the Strategy for UK Life Sciences, published by the UK Government, the overall picture is of an industry developing well to capitalise on strong UK geographic bioscience clusters, the shift to more specialist service companies, and new models of R&D collaboration.
The UK is one of the best places in the world for life sciences, on a par with premier life science destinations such as Boston, San Francisco, San Diego and Singapore. The sector consists of over 5,700 companies employing over 231,000 with an annual turnover of around £61.8bn according to the Strength & Opportunities report issued in 2015. The UK also boasts 4 of the top 10 universities in the world, 19 of the top 100 universities, one of the world’s 3 major financial centres, a stable of quality service providers, world class charitable supporters of the industry and a rich heritage of globally recognised medical research.
Given the adverse economic climate in recent years, the UK Government has made a significant number of regulatory changes in a concerted attempt to ensure that the UK retains its place as one of leading centres of biopharmaceutical and medical technology research and innovation. This represents a significant opportunity to the Investment team at Deepbridge, a sector in which the skillset of the Deepbridge team is particularly adept and is therefore eager to exploit.