Citi Global Wealth UNSToPPABLe TreNDS | | 80 Investments “some” bioprocessing activities over the next 24 to how many services they provide to patients. Agetech months. This is up from 82.6% the year before.3 This creates an obvious incentive for as many treatments to be supplied as possible. Caring for rapidly growing elderly populations Around a third of the most frequently An increasingly popular alternative to this – both in sickness and health – is an enormous outsourced steps are entrusted to life science “fee-for-service” approach is “value-based challenge. Already, certain countries are feeling tools (LST) companies. LST companies create care,” where providers get paid according the pressure of shrinking workforces combined and deploy instruments and tests that empower to patient outcomes. The emphasis here is with large numbers of people requiring the research and development process. The on results, including disease prevention and monitoring, companionship and help with daily LST business model can be compared to that of promoting wellness. functions. We believe that agetech – hardware suppliers of picks and shovels to miners during and software that address old age challenges – 19th century extractive booms. Irrespective Over time, we believe that companies that seek may ultimately have an important role to play in of whether the miners struck gold, the to enhance patient experience and improve addressing this situation. hardware suppliers made money from selling health outcomes are likelier to gain market them hardware. share. This may be especially true in the US, the Wearable devices – such as smartwatches – are world’s largest market. US healthcare spending already widely used to help people track their The global LST market was estimated at around per head is greater than in any other country wellness. Increasingly, they may be used to $92.2 billion in 2020. This may increase at a while patient satisfaction with their experience monitor the health and well-being of seniors, compound annual growth rate (CAGR) of 11.9% can sometimes be found wanting. giving early warnings of heart attacks and between 2021 to 2028, according to Grand strokes and alerting emergency services. And by View Research.4 Technology could play a leading role in driving Some of the key drivers could monitoring for falls, they could also help support be from creating or adopting new solutions for advances in value-based care. Capturing and those living independently. Likewise, robots analyzing and separating chemicals as well as analyzing vast amounts of patient data could may be able to provide vital companionship and genetic and other sequencing. make preventative measures and treatments stimulation, both for those living in their own increasingly personalized. Given their expertise homes and in retirement homes. Risks to this growth potential include slowing in artificial intelligence, big technology demand from biopharma companies, softer companies may enter the healthcare industry Agetech is closely related to several aspects academic demand due to reduced government and act as disruptors. of our unstoppable trend of digitization, funding, and an inability to execute on mergers including robotics, automation and artificial & acquisitions integration. Risks to the leading incumbent providers of intelligence. Given the amount of data captured value-based care include competition from and stored – and the often personal nature of Value-based care new entrants outside the healthcare space and it – cyber security presents one risk to many potential government regulation, which could related companies. restrict flexibility and innovation. The way that patients receive healthcare is changing. Traditionally, physicians and other healthcare providers have been paid according 3 Source: Langer, E.S., et al., Report and Survey of Biopharmaceutical Manufacturing Capacity and Production, 19th annual edition, BioPlan Associates, Rockville, MD, April 2022, 500+ pages. From article entitled 2022 Outsourcing Trends In Biopharmaceutical Manufacturing by Smita Khanna, Ph.D., BioPlan Associates` 4 Source: Grand View Research, as of Sep 2022. Science Tools Market Size, Share & Trends Analysis Report By Technology (Cell Biology, Genomics), By Product (Flow Cytometry, Mass Spectrometry), By End-use, By Region, And Segment Forecasts, 2021 - 2028