U.S. and China Tensions Hinder the Health of Cross-Border Investments

Catalyzed by the constant infiltration of technology—and the shift of care models to center more around value—deal activity and investments in U.S. health and life sciences remained high in 2018 even amid speculation of economic turbulence.

According to NYCHBL’s 2nd annual Healthcare Venture Capital Report, there was a record breaking $30 billion+ invested into the U.S. healthcare system in 2018 alone.

The outlook for deal flow in this sector continues to remain positive in 2019, but rocky trade relations, a newly emboldened Committee on Foreign Investment in the United States and shifting economic conditions in China have complicated what was expected to be a booming opportunity—particularly in the biotech space—for cross-border investments.

To thrive in this environment of investment uncertainty, and broader disruptions to the traditional financial models in healthcare, organizations will need to consider more creative capital raising strategies, such as cross-industry partnerships and IP monetization.

In our latest report using PitchBook data, we’ve analyzed the key drivers shaping inbound and outbound investment in the U.S. health and life sciences spaces—including insights into the state of past, current and future dealmaking between the U.S. and China.
 
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