Opportunities in an evolving healthcare components and solutions market

20 May 2021

A new report from Macquarie Capital and L.E.K. Consulting

Healthcare supply chains are becoming increasingly complex due to rapidly evolving product regulations and requirements from both original equipment manufacturers and their downstream end users such as patients and healthcare professionals. As a result, companies along the healthcare supply chain are looking for ways to adapt by acquiring new capabilities that will enable them to expand into new applications and/or respond to customer needs. This dynamic is generating significant opportunities to create value through strategic acquisitions.

In a joint report, Macquarie Capital and L.E.K. Consulting examine the trends driving investor appetite in Healthcare Components and Solutions (HCCS) – a portion of the market that appears ripe for investment and M&A activity. HCCS includes:

  • Contract manufacturing organisations/contract device manufacturing organisations: manufacturing subcomponents and/or integrating multiple components into a subassembly or finished medical or pharmaceutical product such as a drug delivery medical device or blow-fill-seal ampule
  • High-value primary packaging: specialty packaging (e.g. films, trays/blisters) with high technical requirements (e.g. sterilisation).

Compared to the consumer space, there are a number of distinguishing characteristics that support higher valuations for HCCS companies. With an understanding of the sector, there are multiple avenues to build a HCCS platform and create value through M&A.

For more information on investment and M&A opportunities in the healthcare components and solutions space, please download the report from Macquarie Capital and L.E.K. Consulting below or reach out to one of our specialists.

Finding Growth Opportunities in a Complex Market: Healthcare Components and Solutions

Our team

Robert Bayer

Senior Managing Director and Co-Head of Macquarie Capital’s Industrials business in the Americas

Patricio Gonzalez

Senior Vice President, Macquarie Capital

Anne Maercklein

Associate, Macquarie Capital