Quarterly Insights: Australian Healthcare Equipment and Services

By Stefan Galbo, Stefan Galbo
Corporate Finance Associate Director
22 April 2020

PKF Melbourne Corporate Finance is pleased to present the Healthcare Equipment and Services Insights for the March 2020 quarter, including a summary of key merger and acquisition transactions observed in the industry.

Our quarterly release helps demonstrate our knowledge of the sector and our ability to drive business value and achieve a successful outcome for anyone contemplating a transaction.

The Healthcare Index

The Healthcare Index is comprised of companies involved in the manufacturing and distribution of healthcare equipment and supplies, providers of healthcare services and operators of healthcare facilities. The Index provides a broad measure of the performance of the Australian healthcare industry.

The Healthcare Index experienced growth of ↑ 35.86% over the 12 month period from April 2019 to March 2020 and a growth of ↑ 1.50% for the March 2020 quarter. The Healthcare Index outperformed the ASX for the March 2020 quarter.

COVID-19: Impacts on Australian Healthcare Equipment and Services Sector

The coronavirus pandemic has impacted the Australian healthcare sector in a varying manner.

Opportunities from the COVID-19 outbreak

  • Telehealth technology and service providers may attract interests from buyers or investors as the Australian government unveiled a health package on 29 March that would see $669 million being allocated to telehealth services.¹ 
  • We also note that medical protective equipment manufacturers may experience increase demand as consumers start to see the importance of local manufacturing. Med-Con, a private Victoria-based medical protective apparel manufacturer, is focused on increasing its production to meet the surging demand.

Source: MergerMarket

¹  https://www.pm.gov.au/media/11-billion-support-more-mental-health-medicare-and-domestic-violence-services-0

Key Activity in the Telehealth Sector

Key Deal Activities in March 2020 Quarter

PKF Melbourne Corporate Finance has observed the following key healthcare transactions announced during the March 2020 quarter.

¹ 40% stake

2 55% stake

3 84.1% stake

4 51% stake

5 90% stake