This course analyzes the unique characteristics and strategies of investing in the health care sector from the perspective of private equity firms seeking to build value-creating health care platforms and venture capital firms investing in early-stage health care enterprises. The course also analyzes “dealmaking” strategies in the healthcare sector – mergers & acquisitions, joint ventures, licensing, and other third-party transactions -- including valuation methodologies and deal structuring. It assesses how companies and investors can assess, value and manage the inherent risks in investing in a changing, highly regulated and politically-charged environment.
This course will address these issues through a mixture of lectures, case discussions, and prominent guest speakers from venture capital, private equity, healthcare investment banking, and corporate/ business development executives from the healthcare sector. Specific areas to be discussed include:
- Business drivers of key healthcare market segments (healthcare services (providers, payors, HCIT), biopharmaceuticals, medical devices/products).
- Unique challenges in managing, valuing, and investing in such healthcare segments (government regulation, product life cycle management, pricing/third-party reimbursement, intangibles/patents/IP, public scrutiny, etc.)
- Role, investment objectives/philosophies, financing alternatives, and value-creation and exit strategies of private equity (PE) and venture capital (VC) firms.
- Business development function and external growth strategies (M&A, licensing, joint ventures, co-marketing, etc.)
Some understanding of, or experience in, the healthcare industry will be highly valuable.
Evaluation is 25% class participation, 25% mid-term assignment (questions or case study), and 50% final paper (questions).