Insights from Intrepid’s Opportunities in Diagnostics Webinar

The pandemic is putting the diagnostics sector in the spotlight again. How have current events impacted the sector and what influence will they have on M&A and investment trends? Intrepid’s Co-Head of Healthcare Adam Abramowitz and Kyle Berkman, Vice President, led a dynamic panel discussion focused on Opportunities in Diagnostics.

Key takeaways from the Webinar include:

Testing Beyond COVID

The widespread press about the need for diagnostic testing has brought the sector “front and center” and highlights its importance to monitor the health and accurately direct treatments―expect greater attention on R&D investment for new testing innovations. While many labs are currently offering COVID testing, most see this addition as a short- to medium-term pivot as opposed to a long-term refocus.

Technology and Innovation Wins

Our panelists have experienced rapid growth across their test offerings, especially with innovative genetic and molecular tests that help solve complex patient healthcare questions that were previously unanswerable. Healthcare professionals are embracing advances in specialty testing that help guide patient treatments and reduce costs.

Volumes Are Returning

While the sector was hit hard by the pandemic, testing volumes are returning to pre-pandemic levels as the economy slowly reopens and patients/physicians resume elective healthcare services. Executives are optimistic for the rebound and many have utilized these low volume months to improve internal infrastructures, refine sales programs and focus on operational efficiencies to emerge from the crisis stronger.

M&A Interest Areas

Coming out of the pandemic, expect strategic buyers and investors to increase their focus on diagnostic players that offer differentiated testing or unique sales models/channels with strong growth potential.  Executives did not anticipate their M&A efforts will change meaningfully beyond the pandemic as fundamentals remain critical to transaction valuations. One subsector of increasing interest are those labs that help pharmaceutical companies with their drug development and clinical trials given the robust funding environment and high growth potential.

Corporate Wellness Impacts

As COVID has shifted the onus on employers to take a more active role in ensuring the health and safety of their employees, expect corporate testing and wellness programs to become more prevalent in the years to come. Corporate America is increasing its attention to programs and benefits that help improve the health of their human capital, which ultimately drives engagement and improved performance.

A special thanks to our panelists!

To view the Webinar replay, click here.