Columnist

Spotlight on healthcare and life sciences: A key focus for North East dealmakers

The North East is renowned as a centre of excellence for healthcare and life sciences, delivering world-class research through its four universities and leading the charge on innovation in specialist sectors including medtech, pharmaceuticals and advanced therapies.

According to the North East Local Enterprise Partnership, in 2019 these industries were worth £1.7billion to the regional economy and supported 7,680 local jobs – and these numbers are only set to grow.

It’s important that businesses across the healthcare sector are given the tools to thrive, to help support this major driver of economic prosperity, and to safeguard the progress of research and development in what is a critical industry. This includes having access to finance and tailored business support – and this is where the corporate finance community has a big role to play.

Championing healthcare tech

One of the most significant and fastest-growing sub-sectors of healthcare is health tech. Already a major growth area before the onset of Covid-19, the pandemic served to accelerate the development and roll-out of tech-enabled virtual care solutions, rapid drug and vaccine development, and products focused on protecting mental health and wellbeing.

Indeed, research from Deloitte revealed that throughout 2020, venture funding for health tech businesses exceeded $14billion worldwide – almost double 2019’s figure.

With this trend unlikely to slow any time soon, and with the spotlight firmly trained on health tech firms, it’s critical that their leaders have the support of strategic partners to help them grow sustainably and develop focused expansion plans to allow them to thrive.

On-the-ground expertise

At Weightmans, we have extensive experience guiding businesses within healthcare on the most effective routes to growth.

Throughout the year, we have advised on more than 70 deals, valued at over £270million. Some examples include advising on BGF’s exit of pharmaceutical company Arc Trinova, acting for medical device manufacturer QuantuMDx on its investment from the Future Fund, and working with Northstar on its investments in biotech companies Nanovery Ltd, XR Therapeutics Ltd and Newcells Biotech Ltd.

Another key transaction was our support for technology firm Redu Group. Its Reward Me Now smartphone app champions employee healthcare and wellbeing, and provides businesses with a platform to reward staff for making healthy decisions.

Redu recognised the opportunity to unlock the app’s potential in the healthcare space and worked closely with the team at Weightmans on the sale of Reward Me Now to Latus Health, the occupational health services provider, whose aim is to improve access to preventative healthcare through digital solutions.

Now, the app can be utilised by businesses across the UK and internationally as they take steps to create a healthier workforce.

The events of the past 18 months have underscored the urgent need for effective and accessible digital healthcare technologies, in order to safeguard the population and promote wellbeing.

The professional services sector has a key role to play in the delivery of these products, working to support the entrepreneurs behind their development, not only to turbocharge our regional economies, but to support the creation of a healthier future.

Paul Wigham is a corporate partner at Weightmans LLP

This was posted in Bdaily's Members' News section by Weightmans .