Concurrently, economic conditions have changed, capital markets volatility has increased and the geopolitical climate has evolved as well.
With these developments in mind, Lazard’s global healthcare group conducted a “pulse” survey of healthcare leaders to assess their views on the state of the pandemic and topical issues for the healthcare industry.
Among the findings:
- The financing environment for healthcare companies is expected to be more challenging across the board, most markedly in the public markets.
- Strategic activity among healthcare companies is expected to see an increase in bolt-on acquisitions and strategic alliances.
- A large majority of industry leaders don’t expect any major U.S. legislation regarding drug pricing to occur in 2022.
In addition, a large majority of the respondents believe that the COVID-19 pandemic has transitioned from a pandemic to an endemic phase (see charts below):
Most healthcare leaders believe COVID-19 has already transitioned from a pandemic to an endemic phase
Even as many observers debate the likelihood of the COVID-19 pandemic transitioning to an endemic phase, the majority of healthcare leaders have already made up their minds: 71% believe the emergence of variants such as Delta and Omicron mean that COVID-19 is already in an endemic phase. (A disease is defined as endemic when it is a constant presence limited to a given geographic area or population, according to the U.S. Centers for Disease Control and Prevention).
Even among the 29% of respondents who said COVID-19 is not yet endemic, two-thirds expect it to become endemic this year. Most of the remaining respondents expect it to become endemic before 2025.
Healthcare leaders are divided on how endemic COVID-19 will manifest itself
A more complex question is how endemic COVID-19 would manifest itself. For example, will it be a severe but manageable disease like malaria, or a less severe, more manageable disease like seasonal flu? On this issue, healthcare leaders are divided.
Among those who said COVID-19 is currently in an endemic phase, almost half expect that it is more likely to be accepted and managed like the seasonal flu. However, 32% disagree, saying it is less likely to become like the seasonal flu. Approximately 20% of respondents are in the middle.
Download the survey to read the findings in full.
