Healthcare’s Premier Industry Advisor

The Labour Party’s victory in the July 2024 general election has ushered in a wave of policy commitments with new implications for Special Educational Needs and Disabilities (SEND) provision. Labour has signalled its intent to address longstanding challenges in the SEND sector, particularly through a “community-wide approach” to enhance inclusivity and support structures in mainstream education. However, the details of this approach remain ambiguous, prompting concerns among SEND stakeholders about practical implementation. Cost pressures from National Living Wage and National Insurance Contribution increases may threaten the viability of smaller independent SEND providers but could present opportunities for consolidation for larger players. For investors in independent special schools, Labour’s agenda presents potential risks and opportunities. The government’s commitment to maintaining special schools for children with the most complex needs offers some stability for high-acuity placements. However, broader moves toward mainstream inclusion, stronger local authority oversight, and evolving funding allocations could shift demand dynamics in the independent SEND sector. In this piece, Marwood examines Labour’s key SEND policies, the implications of new cost pressures for independent SEND providers, and the evolving funding landscape. We assess how these developments may affect the viability of independent special schools and explore strategic considerations for investors navigating this evolving market.

Historically, dermatology has been a key sector in the physician practice management (PPM) space for private equity (PE) firms, largely because the dermatology industry is characterized by diversity in payor and service mix, low concern from a cost management perspective, and favorable reimbursement variability. During COVID-19, investor interest in PPMs diminished due to utilization and revenue pressure, staffing shortages, and regulatory oversight of investment activity under the Biden administration. However, as we progress into the second Trump administration, PPMs are positioned for a reemergence in healthcare. Dermatology is well suited for this reemergence, as the sector is established, meaning it is not risky to be a first mover in, but does not see stagnation in development and demand. In this piece, Marwood explores the outlook for the dermatology PPM market, and why opportunities still exist for investors to add value.

As global demand for pharmaceutical and biotech products continues to rise, the market for CDMOs is expanding rapidly. Reports suggest that the European CDMO market is set to expand at a compound annual growth rate (CAGR) of 7.6% from 2025 to 2034, attracting significant attention from investors. Driving this surge is the rising demand for biologics and personalized medicine, along with cost pressures that are pushing pharmaceutical companies to increasingly outsource to CDMOs. While the market remains fragmented, consolidation is underway, with larger, PE-backed firms acquiring smaller CDMOs. High-growth segments, such as biologics, cell and gene therapies, and niche formulations, offer substantial investment opportunities.

Healthcare M&A is anticipated to surge significantly over the next five years. Several factors are fueling this trend, including an increase in both deal volume and size, a focus on rural healthcare, financial pressures, strategic consolidation, and the integration of new technologies. A critical yet often underestimated enabler of successful healthcare M&A is IT integration. Each deal presents unique challenges, shaped by market dynamics, organizational needs, and the nuances of different healthcare sectors. In this article, Marwood explores the growing trend of mergers and acquisitions (M&A) in healthcare, emphasizing the crucial role of IT integration in these complex transactions. It examines the factors driving M&A activity, the strategic importance of IT, potential challenges, and the key success factors. The aim is to demonstrate how effective IT integration can serve as a powerful tool for success in healthcare M&A.

Compounding Pharmacies play an important role in the US pharmacy ecosystem by fulfilling the need for customized drugs unmet by mass-produced products and by addressing commercial supply shortages. The market is an area of growing interest with favorable drivers driven by awareness and preference for personalized therapies, favorable population demographics, increasing disposable income, and frequent drug shortages in recent years. In this piece, Marwood explores the outlook for the Compounding Pharmacy market, including market sizing, dynamics of the top therapeutic areas, and key trends in the market.