International law firm Simmons & Simmons has just released its latest research report “Health Horizons: Opportunities Emerge as Sectors Converge,” focusing on the future of the health and life sciences (HLS) sector. This report, based on survey of over 700 senior executives and major investors from multi-billion-dollar companies across Europe, provides key insights into the evolving landscape of the HLS sector, particularly as it navigates challenges like regulation, ESG and technological disruption.
Key insights include:
- Surging Investor Appetite: 86% of investors expect to increase their investment allocation in the HLS sector over the next three years, with many expecting this to grow by an average of 68%.
- AI and Innovation Driving Growth: 100% of corporate respondents and 99% of investors see AI as a key disruptor in the next 24 months, particularly in areas like drug discovery and patient care.
- Sustainability and ESG Prioritisation: ESG is now a central focus for HLS companies, with all corporates integrating ESG principles. However, 25% of companies cite challenges related to waste management, carbon footprints, and supply chain issues.
- Aging Populations and Social Infrastructure: Investors are particularly drawn to social infrastructure, including elderly care, retirement living, and private hospitals, as aging populations drive demand for these services.
- Global Opportunities: While Europe remains the primary region for investment, emerging markets in the Middle East and Asia Pacific are also attracting significant interest.
- Regulatory Challenges:Â Complex regulatory frameworks are hindering investment flows, and future regulatory changes are expected to have a significant impact.