Citi Perspectives 2024 Corporates Edition

6 | Services Citi Perspectives A Prescription for Healthcare Treasury: How AI can accelerate healthcare treasury management The healthcare industry continues its rapid evolution as emerging, disruptive technologies transform the health and wellness space. This in turn is impacting how treasury organizations are supporting strategic objectives. Today’s healthcare industry ismore globalized than ever before, leading to an increase inmerger and acquisition (M&A) activity, particularly in biopharma, which is projected to see health-tech investments of approximately $1.2 trillion through 2025. 1 The increase in M&A activity, as well as advances in research and development (R&D), has treasury organizations focused on liquidity with the goal of better managing capital. Technology innovation is driving major change as big technology players continue to transform the landscape and generative artificial intelligence (gen AI) is being used to create precision medicines and tailored gene therapies, which hold the potential for better health outcomes. Revenue from such treatments is likely to reach $175 billion by 2030. 2 GLP-1 drugs to treat conditions such as diabetes and obesity are creating huge opportunities for growth. The latest projections show a market size of $71 billion by 2032, which holds the potential of dramatically altering the wellness market. 3 1 Iqvia | Biopharma outlook – Source: https://www.iqvia.com/blogs/2024/01/biopharma-m-and-a-outlook-for-2024 2 Precedence Research - https://www.precedenceresearch.com/precision-medicine-market 3 Deloitte |Can-offshoring-help-health-systems-bulk-up-thin-margins - Source: https://www2.deloitte.com/us/en/blog/health-care-blog/2023/can- offshoring-help-health-systems-bulk-up-thin-margins.html