Good morning, ! It’s Thursday and we’re diving into mid-market private equity’s play in healthcare, the booming precision medicine market, and the median launch price of new U.S. drugs.

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DATA DIVE

Mid-Market PE’s New Prescription: Tech, Homecare, and Scale

Healthcare private equity is getting its steps in—mostly at home. Mid-market PE, once hyper-focused on roll-ups in traditional provider services, is now chasing tech-enabled models, biopharma services, and decentralized care. The data shows why: from 2019–2024, capital raised by mid-market healthcare funds jumped over 40%, while deal activity remains well above pre-2017 levels. Add in exit stabilization in 2024 and home infusion’s projected $20.5B U.S. market size by 2033, and you’ve got a recipe for sector-wide transformation. The new PE playbook? Scale smarter, specialize faster, and go wherever the patient is—which increasingly means their living room. (Read or Listen to the Full Report)

TREND OF THE WEEK

Gene Therapy Sticker Shock

The median launch price of new U.S. drugs crossed $370K in 2024 — a 2x spike since 2021, according to Reuters. The main driver? An industry-wide pivot to rare diseases, where fewer patients mean steeper bills. In 2024, a full 72% of new launches were orphan drugs, and gene therapies now regularly flirt with seven-figure price tags. It’s not just pricing chutzpah — scientific tailwinds and FDA incentives (like longer exclusivity) help, too.

Zoom out: The U.S. government is trying to cool things down. A proposed “most-favored-nation pricing” policy pegs drug prices to those in other wealthy nations. Sounds bold, but legal analysts smell more bark than bite. As pharma bets on niche cures, policymakers scramble to avoid becoming the world's piggy bank. (More)

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MARKET MOVERS

HEALTHTECH CORNER

Healthtech Corner: Precision Medicine Doubles Down

Precision medicine is shifting from promise to scale. The market is set to grow from $102.2B in 2024 to $255.4B by 2030—a 2.5x expansion in just six years.

The growth trajectory isn’t linear—it accelerates. From $17B YoY growth in 2025, the market gains jump to $36B between 2029 and 2030. That suggests a maturing infrastructure, clearer regulatory pathways, and increasing clinical adoption—especially in oncology, rare diseases, and pharmacogenomics.

Why this matters: Investors and strategics should be watching for scale-up plays in bioinformatics, companion diagnostics, and real-world data platforms. As personalized therapies move from boutique to backbone, enabling technologies (AI, sequencing, and EHR integration) will drive both valuation and M&A heat.

Precision medicine is no longer a side bet. It’s becoming central to how the next wave of therapeutics—and returns—will be delivered. (More)

DEAL OF THE WEEK

A Microglial Bet Worth Half a Billion

French Pharma Sanofi, in line with its plan of $20B investments in the US through 2030, has inked a $470M deal to acquire Vigil Neuroscience, betting on microglial science to bolster its neurology pipeline. 

The kicker? An additional $2/share CVR tied to Alzheimer’s hopeful VG-3927 could push the total price tag to $600M. VG-3927 targets TREM2, a receptor linked to Alzheimer’s risk, and is set to enter Phase 2 trials in Q3 2025. The deal excludes VGL101, which reverts to Amgen. Expect closure in Q3 2025, pending approvals. Centerview Partners advised Vigil, with Goodwin Procter on legal. Sanofi’s move? Less headline-grabbing, more pipeline-building. (More)

REGIONAL FOCUS

GCC’s $159B Health Surge is an Investor Magnet

The GCC’s healthcare budget is growing faster than a tech company’s headcount post-Series B. From $109B in 2024 to a projected $159B by 2029, the region is clocking a steady 7.8% CAGR—and it's not just a number. It’s a signal. Rising chronic disease, aging populations, and top-down universal health coverage reforms are turbocharging demand. Governments are banking on private capital to deliver infrastructure, healthtech platforms, and scalable care models. For investors, this isn’t about betting on the next biotech—it’s about anchoring into a macro-backed healthcare transformation in one of the world’s wealthiest regions. (More)

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Henry David Thoreau