2020 triggered it; 2021 consolidated it: the healthcare revolution is only getting started.
Both in business and life, the end of the year comes as an opportunity to celebrate your accomplishments and set new milestones. To reflect on how we’ve performed during the last 365 days and acknowledge the adjustments needed for the restart of the calendar.
As its disruptive predecessor, 2021 was everything but ordinary – from beginning to end, it was full of ups and downs, bringing back a sense of normality yet closing with a plot twist record high of COVID-19 cases.
Regardless of the growing apprehension due to the Omicron variant, no one can deny that 2021 was a year of crop gathering after the immense efforts the medical and scientific community made in 2020. Besides the obvious (nearly 60% of the world population has been vaccinated against the COVID-19 virus), the healthcare sector has many things to celebrate this year.
Medical wins
- The FDA approved 46 new drugs (30% were oncological treatments).
- Health-tech is on the rise and, each time, more integrated into medical practices.
- The commercialization of the first long-acting injectable medication for HIV and the first Alzheimer’s treatment in nearly two decades.
- The creation of the Split Real-Time Application Review (STAR) pilot program to speed up FDA review processes across all therapeutic areas.
For the financial world, 2021 was the year of recovery in the aftermath of the pandemic disruption and market uncertainty. And while the other industries were restarting their game, the precision medicine and biotech markets didn’t slow down their pace and consolidated as one of the investors’ favorite industries:
The Industry Figures
- The Medical Technology market cap reached 2.2 T in 2021, with nearly 40% of shareholders returns since 2019.
- The Global Biotechnology Market is forecasted to break the 1 Trillion landmark in 2022.
- The Global Healthcare Market will reach $11.9 Trillion by 2022.
This context set the investment climate for the past 12 months and filled everyone involved with good news, including ourselves. At Infusion 51a, we’ve been capitalizing on the industry momentum by securing strategic alliances and focusing on team augmentation, which has resulted in big wins for our portfolio companies and shareholders.
Infusion 51a’s at a Glance
- We doubled our operation team and strengthened our data and marketing capacities, further enhancing our due diligence practices.
- We attended a handful of events including: the New Orleans Investment Conference, the top gathering for private investors in the US, and the 75th NYC PostGraduate Assembly in Anesthesiology, where we shared investment knowledge with over 500 physicians interested in adding biotech and private equity to their portfolio.
- We welcomed Dr. Afshin Safavi, founder of BioAgilytix Labs (recently sold at $2.5 Bn), as a strategic advisor.
- We initiated expansion into the Middle East and spotted overseas opportunities.
- Our leadership offered strategic advice to Biowise Capital 2, an investment firm managing over 20 biotech companies valued at over $500 MM.
- We continued to impact and grow support spaces for our community of Glioblastoma patients and caregivers.
The year for our portfolio companies
2021 was a formidable year for our portfolio companies, whose pipelines shined among the medical community and achieved important milestones:
- After receiving the FDA orphan drug designation for their lead development candidate (AR-67), Vivacitas Oncology secured close to $2 million in funding through an equity transaction.
- Later this year, Vivacitas partnered with Image Analysis Group (IAG) to apply AI-based technologies and advanced imaging to further develop AR-67 potential. Together, they presented a poster at this year’s annual Society of Neuro-Oncology (SNO).
- Meanwhile, Theralink Technologies received the Clinical and Public Health License from the State of California for its Golden, Colorado laboratory and was named commercial provider of its patented Reverse Phase Protein Array (RPPA) technology.
What’s on sight for 2022?
- The expansion of our co-founded company, Precise Generics, offers generic oncologic drugs utilizing precision-based technologies.
- The eve of Vivacitas Oncology’s initial public offering.
- Infusion 51a international consolidation and portfolio diversification.
- The creation of the Compassion Department focused on promoting awareness, visualization, and support among cancer patients, reinforcing our position as a purpose-driven investment fund.
As the year draws to an end, the healthcare investment environment prepares to ride the emerging trends that appear destined to rule modern medical practices. And so should you. We’ll detail those trends in a later article, but in the meantime, we prompt you to add “venturing into MedTech” to your new year resolution list.
Sources
Marr. B (2021). The 5 Biggest Biotech Trends In 2022. Forbes. [Dic 8]. [Online]. Available at: https://www.forbes.com/sites/bernardmarr/2021/12/08/the-5-biggest-biotech-trends-in-2022/?sh=61235e80380f
Fitri. A. (2021). Health AI start-ups in the UK raised more than their fintech peers. TechMonitor. [Dic 15] [Online]. Available at: https://techmonitor.ai/technology/ai-and-automation/health-ai-start-ups-uk-raised-more-than-fintech-peers
OECD (2021). OECD Economic Outlook, Volume 2021 Issue 2: Preliminary version. [Dic 1] [Online]. Available at: https://www.oecd-ilibrary.org/docserver/66c5ac2c-en.pdf?expires=1639633682&id=id&accname=guest&checksum=9937477456CD738A4BB7B5C158FCB626
Lagasse, J. (2020). Telehealth growth attracts the eyes of investors as 2021 could see an influx of capital. Healthcare Finance. [Dic 14] [Online]. Available at: https://www.healthcarefinancenews.com/news/telehealth-growth-attracts-eyes-investors-2021-could-see-influx-capital
Insider Intelligence (2021) US Healthcare Industry in 2021: Analysis of the health sector, healthcare trends, & future of digital health. [August 11]. [Online]. Available at: https://www.insiderintelligence.com/insights/healthcare-industry/
Techtic. (2020). Healthcare Industry Statistics in 2021. [Nov 30]. [Online]. Available at: https://www.techtic.com/blog/healthcare-statistics/
Business Wire (2019). The $11.9 Trillion Global Healthcare Market: Key Opportunities & Strategies (2014-2022) – ResearchAndMarkets.com. [Jun 25]. [Online]. Available at: https://www.businesswire.com/news/home/20190625005862/en/The-11.9-Trillion-Global-Healthcare-Market-Key-Opportunities-Strategies-2014-2022—ResearchAndMarkets.com
McKinsey & Company. 2021. The global market valuation of sectors. [Accessed Dic 15, 2021]. [Online]. Available at: https://www.businesswire.com/news/home/20190625005862/en/The-11.9-Trillion-Global-Healthcare-Market-Key-Opportunities-Strategies-2014-2022—ResearchAndMarkets.com
