You must have heard about healthcare investment banking at some point in your life; most people can tell what it is about, whereas there is a percentage who still do not understand this. Therefore, healthcare investment banking is a group within an investment Banking division of a given investment bank, like Chardan. It entirely focuses on healthcare companies and can fully advise clients on various strategic transactions like Mergers & Acquisitions, divestitures, and capital services like equity and debt. Their significant clients span healthcare companies like pharmaceuticals and biotechnology, healthcare facilities, and medical equipment and devices. This article will help you understand every question you might be having concerning healthcare investment banking:
Healthcare Investment Banking groups
Most banks in this tend to divide their teams into two: the industry group and product groups. Healthcare becomes the best example of the industry group; this team executes every type of transaction such as equity, debt, M&A, among others; however, all these are done within a single industry.
The healthcare companies are categorized into two major categories; pharmaceuticals, biotechnology and life sciences and healthcare equipment & services. The latter includes hospitals, labs, managed care, assisted living and nursing facilities and medical device companies. Biotechnology and life sciences include companies that make branded and generic drugs, which can be derived from living organisms, biotech or pharmaceuticals. It as well contains companies that make supportive tools for these activities.
Who gets into healthcare investment banking?
Unlike some of the other groups requiring advanced degrees in medicine, chemistry or biology, this does not need those requirements. This is where so many questions arise from, among them; does healthcare investment banking cover biotechnology? As mentioned earlier, healthcare investment baking is divided into two categories: biotechnology and life sciences, which means it covers biotechnology.
Who can get into healthcare investment banking?
Healthcare group companies mainly consider hiring undergraduates with helpful medical knowledge; they must not have degrees in high medical courses. What primarily affects the operations in the healthcare business models knowledge is considered the most important amongst all the others. If you have a healthcare background, that’s an added advantage as you have the required exposure to healthcare. The recruitment processes are not much different from the other recruitments you know. You should attend an undergraduate or master’s program, get high grades, gain relevant internships and work experience, and finally, do a more significant amount of networking and preparation.
What do analysts or associates do in healthcare investment banking?
Your experience as an associate or analyst will depend on your knowledge or the areas you have focused on within the healthcare sector. As we mentioned earlier about the two main categories of healthcare investment, for instance, if you choose the Healthcare Equipment & Services, you will be working with more prominent companies dealing with more debt. You tend to learn more about finance as you understand less about the markets and the science behind most of the drugs available.
Finally, choosing pharmaceuticals, biotechnology, and life sciences means you will work with big and smaller companies, thus gaining more product knowledge; however, you will spend less time working on high-yield debt financing.
