Lazard Hires Colocci for Healthcare, Eyes Global Expansion

Key Takeaway

• Lazard Inc. boosts its European healthcare investment banking by hiring Michele Colocci, a veteran from Morgan Stanley.
• The firm's involvement in major deals, like Galderma's $15 billion listing and acquisitions for Vertex Pharmaceuticals and Sanofi, showcases its healthcare sector expertise.
• India's healthcare sector attracts a record $5.5 billion in investments in 2023, highlighting global interest despite overall private dealmaking contraction.

Strategic Hire Boosts Lazard's European Presence

Lazard Inc. has made a significant move to expand its European healthcare investment banking operations by hiring Michele Colocci, a seasoned dealmaker from Morgan Stanley. Colocci, who brings over three decades of experience in the sector, will join Lazard as a vice chairman of investment banking and managing director in its London office starting June 3. This appointment underscores Lazard's ambition to enhance its healthcare franchise, currently led by David Gluckman in New York. Colocci's career highlights include his role as chairman of mergers and acquisitions and global co-head of healthcare investment banking at Morgan Stanley. His notable transactions include advising on the $32 billion acquisition of Baxalta Inc. by Shire Plc in 2016.

Lazard's Healthcare Deal Milestones

Under the leadership of CEO Peter Orszag, Lazard has been actively involved in several key healthcare deals, demonstrating its commitment to the sector. The firm played a pivotal role in advising Galderma Group AG on its Zurich listing, which valued the Swiss skincare firm at over 15 billion Swiss francs. Additionally, Lazard advised Vertex Pharmaceuticals Inc. and Sanofi on acquisitions nearing $7 billion and supported CymaBay Therapeutics Inc. in its $4.3 billion sale to Gilead Sciences Inc. These transactions highlight Lazard's expertise and its strategic focus on healthcare, a sector experiencing significant growth and transformation.

India's Healthcare Sector Attracts Record Investments

The healthcare sector in India has seen a surge in private equity and venture capital investments, reaching a record $5.5 billion in 2023, a 25% increase from the previous year. This growth is driven by rising healthcare spending in the world's most populous nation and represents a bright spot amid a downturn in overall deal activity. Major global investment firms, including Bain Capital, Blackstone Group, and KKR, have shown a keen interest in India's healthcare potential, with KKR recently acquiring Healthium Medtech and Advent International investing in Apollo Hospitals. The sector's expansion is fueled by increasing health costs, insurance coverage, and the prevalence of non-communicable diseases.

Government and Economic Implications

Despite the private sector's growth, India's public healthcare system remains underfunded, with government health expenditure at just over 1% of GDP. The Bharatiya Janata party, led by Prime Minister Narendra Modi, has pledged to improve health services, including introducing a public insurance policy covering approximately 120 million low-income households. However, challenges such as inadequate infrastructure, a shortage of healthcare professionals, and a lack of trust in public facilities persist. The focus on healthcare investment comes amid a 35% contraction in overall private dealmaking in India in 2023, reflecting global economic trends. Yet, India's share of private investment in Asia has increased, indicating strong investor confidence and a shift in investment priorities within the region.

Management Quotes

• Peter Orszag, CEO of Lazard:

  "The firm was committed to continuing investing in Europe."