A surge in healthcare IPOs and mergers and acquisitions is expected in 2025, according to Jefferies" annual healthcare report.
The report highlights a positive outlook for the healthcare sector based on a survey of institutional and private investors, as well as healthcare executives. These stakeholders express confidence in the sector"s growth potential.
The report also reveals an increase in confidence among companies considering public offerings. Equity financing and IPOs are predicted to dominate transactional activity in 2025.
The survey indicates that weight-loss drugs are expected to have a significant and enduring impact in the long term. The success of Novo Nordisk"s obesity treatment, Wegovy, further supports the potential of this market.
Respondents to the survey are optimistic about market forecasts, with expectations of growth in the FTSE 100 index and the MSCI World Healthcare index.
Geopolitical risks are identified as the primary concern for investors, surpassing financing difficulties.
The healthcare sector is seen as a focal point for investors in 2025, with increased IPO activity, robust M&A prospects, and a favorable market environment.