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).
Professor Cramer spent more than 25 years in the healthcare, pharmaceutical, and financial services sectors. He was Managing Director at Merrill Lynch in the Global Healthcare Investment Banking Group, and Managing Director at JPMorgan in the Corporate Finance Group providing M&A services and financing to global healthcare enterprises. Earlier, Prof. Cramer was Vice President, Corporate Planning & Development for Merck & Co., Inc...
Kenneth Hitchner was a Columbia Business School faculty member from to 2013.
Jonathan Korngold was a Columbia Business School faculty member from 2011 to 2016.