<Report

5 Title>
COVID-19 Survivors
<Report Subtitle>
Industries which will gain from the global
lockdown

MarketLine Theme
MarketLine ThemeReport
Report

Report Code:
Report Code: <Code>
ML00026-033

Published:
Published: <Month
June YYYY>
2020
 5 COVID-19 Survivors

1 Pharma and Medical Devices

2 Food Retail and Delivery

3 UC&C Providers

4 Consumer Tech Services

5 Private Equity Funds

 Executive Summary
Since the World Health Organization (WHO) declared COVID-19
to be a pandemic in March, the toll of lockdown measures across
the world has been severe in most sectors. However, there are
sectors which have seen demand for at least some of their goods
and services increase during this otherwise disastrous period.
1. Pharma and Medical Devices
Racing to produce diagnostic tools, therapies and treatments for
COVID-19, pharmaceutical and medical device companies are
working both independently and in partnership with the public
sector to meet demand. New entrants from other sectors are
further intensifying competition, and tech giants are accelerating
their long-term healthcare strategies.
2. Food Retail and Delivery
Supermarkets around the world have become focal points of
demand as the hospitality sector effectively shuts down.
Restaurants and cafes which have managed to continue
operating have done so through delivery services, which are
busier than ever. The confluence of these two areas of demand is
grocery delivery, a global trend which has been accelerated.
3. UC&C Providers
Remote working has become essential for businesses under
lockdown, and for many the shift has exposed a huge gap in their
IT infrastructure. Providers of Unified Communication and
Collaboration (UC&C) services have stepped in to facilitate
remote working at scale, and a raft of marketing campaigns has
taken off as the market rapidly diversifies.
4. Consumer Tech Services
Social media and streaming services have a larger captive
audience than ever in house-bound populations, and have seen
subscriber rates soar. The post-pandemic future poses a
challenge to these tech giants, which must retain new users.
5. Private Equity Funds
Conventional private equity deals are in decline, but private
equity funds have an alternative form of investment – private
investment in public equity (PIPE). PIPE is booming, owing to an
unprecedented store of capital high demand from public
companies whose valuations are plummeting despite good
prospects for recovery.
1. Pharma and Medical Devices
1.1. Big pharmas are competing to beat the virus
1.1.1. Work with the public sector massively outweighs that with the private
1.1.2. Gilead’s remdesivir is currently the biggest contender
1.1.3. Demand is needed to compensate for the risks to the industry
1.2. The US is leading a boom in medical device R&D
1.2.1. US leads global output, with companies competing independently and in partnerships
1.2.2. Greatest demand comes from in vitro diagnostics
1.2.3. External competitors are weighing in
1.3. Tech companies are bringing new healthcare solutions to market
1.3.1. Amazon’s healthcare ascendance has been accelerated
1.3.2. Tech giants are weighing in with tracking apps
2. Food Retail and Delivery
2.1. The door has closed on hospitality as another opens for food retail
2.1.1. Patterns of demand for groceries have changed
2.2. Sharing economy apps gain from both food retail and hospitality
2.2.1. Lockdown could hasten trends towards grocery delivery
2.2.2. COVID-19’s impact on diverse global delivery apps will be ubiquitous
3. UC&C Providers
3.1. IT providers will see lasting gains from a change in business practices
3.1.1. Remote working boom comes at a time of transition
3.2.1. UC&C providers have a crucial marketing opportunity
3.2. Diversification of the market is ramping up
3.2.1. The UC&C market will continue to diversify with disruptive new entrants
3.2.2. Cloud services have also become vital
4. Consumer Tech Services
4.1. Social media and streaming are benefitting from captive audiences
4.1.1. Streamers’ preparedness for long-term impacts will vary
4.1.2. Keeping users locked in will differentiate more established players
4.1.3. Social media also needs to retain new users after lockdown
5. Private Equity funds
5.1. Private Equity funds are eyeing up struggling public companies
5.1.1. PIPE deals are already on the rise
5.1.1. Private equity funds have huge stores of cash to invest
5.1.3. Strong but struggling public companies present an opportunity
1 Pharma and Medical Devices

2 Food Retail and Delivery

3 UC&C Providers

4 Consumer Tech Services

5 Private Equity Funds

 1
Big pharmas are competing to beat the virus
The pharmaceutical industry is the most obvious area to benefit from increased demand during the pandemic. The race to find antivirals and vaccines for
the virus has ramped up competition between the industry’s leading players, with one pharma player already coming out in front.

Work with the public sector massively outweighs that with the private
The vast majority of COVID-19 sufferers are either in publicly funded healthcare systems or in countries where the government is first in line to secure

“
Partnerships with
treatments. In this environment, and in the interests of maximizing access to data and the efficiency of clinical trials, partnerships with public research
public research
bodies are more popular than independent R&D. Examples include Merck’s partnership with the Institute for Systems Biology in the US, or that between
bodies are more Clover Pharmaceuticals in Australia and CEPI, the Coalition for Epidemic Preparedness Innovations. Independent research, however, appears to have
popular than yielded the most success, with Gilead’s remdesivir treatment showing the highest success rates.
independent
R&D Gilead’s remdesivir is currently the biggest contender
Gilead has developed its remdesivir antiviral to Phase III clinical trials in China and the US. Following a trial in the US sponsored by the National Institute of
Allergy and Infectious Diseases (NIAID), the director of the Institute Dr. Anthony Fauci said it had proved that a drug could block COVID-19. The rate of
recovery was shown to be 31% faster for patients who used the drug. A key competitive feature of remdesivir is expected to be its required dosage, which
is smaller than those of competitors’ drugs and would reduce the risk of shortages.

Demand is needed to compensate for the risks to the industry

The potential disruption of supply chains in this industry, and the relative difficulty of isolation and social distancing for its workers, make the competition
to meet demand even more heated. The industry’s leading players are globally integrated on a massive scale, with non-agile assets around the world that
are essential to R&D and manufacturing. To cite just one example of the impact of pandemic lockdowns on these assets, several key players including
Gilead, Merck and Johnson & Johnson have facilities in Northern Italy, where the extent of COVID-19 cases and the consequent lockdown have been the
most severe in Europe. The European Medicines Agency (EMA) has warned of “shortages or disruptions”, and Recipharm, one of many pharmas operating
in Italy, said in early March that “some of [its] facilities located in the restricted zone of Italy may be operating at a lower capacity”.

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 1
The US is leading a boom in medical device R&D

Whilst pharmas work towards therapies, medical device manufacturers are seeing huge
demand for testing kits and ventilators, with the US leading R&D and production.

US leads global output, with companies competing

independently and in partnership
The US is by far and away the most prolific hub for R&D in this area. Leading companies in
the race for development and production of new devices include established players like the
ventilator manufacturers Draeger, Getinge and Hamilton Medical, all of which are increasing
their capacity several-fold to meet demand. Partnerships are leading the way in some areas,
such as MaskForce, a consortium led by Husco, which started production on an FDA-
approved face mask in early May 2020. The approval of MaskForce’s new product is
explicitly temporary, approved for ‘emergency use’. One of the mask’s main benefits is its
low-pressure design; images of high-pressure masks that cause facial bruising were widely-
shared when the pandemic reached Europe.

Greatest demand comes from in vitro diagnostics

According to the GlobalData Medical Pipeline database, in vitro diagnostics are gaining the
most from investment necessitated by the pandemic. Testing kits are in high demand
around the world, and variable standards and requirements among governments and
regulatory bodies present an opportunity for differentiation between manufacturers. In May
2020, Public Health England (PHE) approved use of an antibody test manufactured by the
Figure 1
Swiss company Roche, having previously spent £16m on tests which were later disapproved The top five countries by current medical device Figure X
pipelines
by PHE. Ventilators are the next most in-demand medical devices, the majority in 2020 (total number of devices in any stage of production).
development and production being portable.
Source: GlobalData Medical Products Pipeline
Source:

9
 1
The US is leading a boom in medical device R&D

External competitors are weighing in

In the case of testing kits, ventilators, PPE and various other medical
equipment, strong demand has brought in new kinds of competitors. For
example, the BlueSky ventilators on order for the UK government in early
2020 were provided by two Formula One racing teams, Renault and Aston
Martin Red Bull. Part of the wider Project Pitline initiative, this was just one
example of entities outside of the medical devices sector coming directly
into competition with that sector’s traditional players.

Other examples include the Mahindra Group, which is developing

ventilators for the Indian healthcare system, and the Spanish apparel maker
Inditex, which announced in April 2020 that it planned to bring 300,000
surgical face masks to market in a matter of weeks. In the US, President
Trump has obliged General Motors to retool to produce ventilators under
the Defense Act, again creating an unprecedented new entrant in the
market.

These competitors are temporarily retooling in order to make up for their

own losses. With stocks piling up due to the lack of demand and disruption
to distribution channels, many are repurposing their manufacturing assets
to maintain some level of productivity, create an alternate revenue stream, Figure X2
and also take advantage of an opportunity for positive PR. Their disruption Selected manufacturers and their COVID-19 contributions.
to the market will therefore be brief, but will still intensify competition.
Source: Company Press Releases
Source:

10
 1 Tech companies are bringing new healthcare
solutions to market
Other notable players in the healthcare sector will be the tech giants, who are emerging as key healthcare service providers more
quickly than was anticipated prior to the pandemic. Traditional providers of healthcare services in the private sector also stand to
benefit in some ways from the pandemic, as struggling public providers outsource capacity. However, these providers are
increasingly being nationalized.
Amazon’s healthcare ascendance has been accelerated

“
COVID-19 The quickest mover among the tech giants has been Amazon, which is rumoured to be in talks with public healthcare providers to
presents an deliver testing kits to patients’ homes. Having long piloted its Amazon Care service as an internal service for employees, it began
opportunity for delivering testing kits in the Seattle area in early 2020. The company has long been expected to have designs on the private
Amazon to bring
healthcare sector. Through its Alexa service and the wearables that it runs on (currently smartwatches), Amazon will be able to
its remote
monitor health indicators and automatically push treatments remotely, the same way it monitors consumer preferences and pushes
treatments to
market ahead of products (see Figure 3). Since COVID-19 has forced many patients to remain at home, it presents an opportunity for Amazon to bring
schedule its remote treatments to market ahead of schedule.
Tech giants are weighing in with tracking apps
Google and Apple have also formed an unprecedented partnership to provide a COVID-19 track-and-trace app on their smartphones.
Together they occupy the vast majority of the global smartphone market, and are offering a decentralized system that would avoid
storing location data. Track-and-trace apps, which alert individuals if they have been in contact with a COVID-19 carrier, are widely
seen as a pillar of the pandemic’s long-term containment. Centralized solutions which store the data gathered by the apps have
initially been favored by countries like the UK and Germany, although the latter has gone on to switch to the decentralized model. It
is debatable whether the cornering of a solution to the track-and-trace by Google and Apple will help to cement their dominance in
the smartphone market, or whether it is simply proof of that dominance.

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1 Pharma and Medical Devices

2 Food Retail and Delivery

3 UC&C Providers

4 Consumer Tech Services

5 Private Equity Funds

 2 The door has closed on hospitality as another
opens for food retail

Supermarkets in most countries have stayed open during the COVID-19 lockdown, making them unique among
businesses which rely on physical congregations of customers. Initially, spikes in demand stemmed from panic-
buying, a widely-criticized practice which has tended to decline after the first few weeks of a country’s lockdown.
Increased demand has then been maintained, and driven even higher, by transferred demand from the hospitality
sector. One collateral effect of the latter sector’s particular vulnerability to lockdown measures has been the bulk
substitution of foodservice transactions for supermarket transactions. The extent of hospitality’s vulnerability is
illustrated in Figure 3.

Patterns of demand for groceries have changed

Lockdowns have also put constraints on the times when customers can visit supermarkets, and have given
supermarkets unprecedented scope for managing customer flow. Social distancing rules are being enforced across
most of the world, meaning that supermarkets must limit the number of customers on their premises at one time.
This blanket policy has meant that supermarkets can manage the heavier burden on their resources without losing
resentful customers to competitors. This does not mean that there have been no new opportunities for
differentiation; there is also a new focus on the steps supermarket brands have taken to maximize customer safety
and assurance.

The number of trips customers can make to the supermarket has also been limited in most countries. Restrictions
have been most extreme in China and Italy, where trips outside the home have been limited to one every few days.
It can be assumed, in light of the sales growth shown in Figure 3 and the limitations on journey’s outside the home,
that customers are spending a great deal more per trip. This is another change in the pattern of demand, and has Figure 3
made the competition for customer loyalty more intense than ever, with more turnover at stake in each visit. Figure
Monthly growth rate in retail sales volumes (March X
2020);
accommodation and food service business closures (April 2020).
Source: ONS
Source:

13
 2 Sharing economy apps gain from both food retail
and hospitality
Like supermarkets, food delivery apps have received a boost from transferred demand as restaurants are forced to close their doors.
These apps, the largest of which is Uber Eats, were already thriving off restaurant demand, delivering food for businesses which
previously lacked the logistics or incentives to operate their own takeout services. They have emerged as one of the most robust
areas of the sharing economy during the pandemic, and although grocery delivery is a relatively new frontier for them, it will be
pushed forward as well by lockdown pressures on supermarket logistics.

Lockdown could hasten trends towards grocery delivery

“
Grocery delivery
can also be Grocery delivery through sharing economy platforms is the next big growth opportunity for Uber Eats and its peers. Spurred by the
expected to be arrival of Amazon Fresh in a handful of urban hubs, as well as the ecommerce giant’s investment in Deliveroo for a 16% stake in
pushed forward 2019, delivery apps and traditional grocery retailers are both gearing up for a shift in demand. Recent examples of partnerships
by lockdown between supermarkets and apps include Pingo Doce’s 2018 partnership with Mercadão in Portugal; Éxito and Rappi in Colombia in
pressures on 2019; and Central Group and GrabFresh in Thailand in the same year.
supermarket
logistics The COVID-19 lockdown will also accelerate the growth of grocery delivery. The risk to consumers of going to grocery stores during
the pandemic has led to a surge in online orders in many countries. Whilst some stores have been better-prepared than others, most
have found their last-mile delivery systems overwhelmed. Supermarkets in the UK, for example, have had to access government
databases in order to prioritize delivery to the most vulnerable of their customers.

As virtual queues continue to back up for hours online, customers have gradually turned to the grocery tab on their Uber apps and
other platforms. Uber Eats saw a 52% year-on-year increase in gross bookings in Q1 2020, according to its earnings report. The
platform has already launched grocery deliveries in several new markets during the lockdown, partly in response to the threat to its
more vulnerable ridesharing business, but also to seize this abundant opportunity. With the prospect of converting first-time users to
online groceries after lockdowns are lifted, delivery apps are effectively seeing a massive marketing opportunity that will lock in long-
term growth.

14
 2 Sharing economy apps gain from both food retail
and hospitality

COVID-19’s impact on diverse global delivery apps

will be ubiquitous
Uber leads the global food delivery market with its Uber Eats platform, but its
mobility-first business is competing with many delivery-first startups on their home
turf. These startups are undergoing their own lockdowns, the demand-escalating
effects of which will intensify the global competition. Regions like South East Asia
and South America (see Figure 8), which have emerging economies and rapid rates
of urbanization, are particularly fertile markets. Uber’s world-class competitors in
these regions include Rappi in Colombia and Thailand’s GrabFresh, both of which
are expanding aggressively into their neighboring markets. As of May 11, 2020,
staying at home was recommended in Thailand, whilst in Colombia and Rappi’s
other markets it is required except for essential trips. These markets will see the
same transferred demand from on-site foodservice to takeout as in countries
where big players like Uber have been publishing strong results.

Figure 4
South America’s biggest delivery apps and their current Figure X
markets.
Source: Company Press Releases Source:

15
1 Pharma and Medical Devices

2 Food Retail and Delivery

3 UC&C Providers

4 Consumer Tech Services

5 Private Equity Funds

 3 IT providers will see lasting gains from a change
in business practices

In many industries, the pandemic has hit fast-forward on a pre-existing trend

towards remote working, giving a boost to the already thriving market for
Unified Communication and Collaboration (UC&C). Companies in this field
include tech giants, which are also the leading providers of cloud storage,
another market which will receive a boost from remote working needs.

Remote working boom comes at a time of

transition
MarketLine estimates that under the UK’s lockdown, the number of full-time
remote workers in the country will have increased by almost 200% (see
Figure 5). This represents a huge market for the facilitators of UC&C, with
businesses needing to continue operating outside of their central offices. The
facilitators include providers of video conferencing, file-sharing and
collaborative working software. The remote working boom in fact came at a
time when some tech companies were already consolidating these services
into single offerings. Microsoft, for example, has recently integrated its Skype
For Business solutions into Teams, its flagship UC&C package.

Figure 5
Figure X
Projected increase in remote workforce for the UK, Q1 2020. (Based on total
workers in 2019 in roles that could reasonably be performed remotely)
Source: Office of National Statistics (ONS) Source:

17
 3 IT providers will see lasting gains from a change
in business practices
UC&C providers have a crucial marketing opportunity
Remote working under lockdown has accelerated a trend towards a permanent restructuring of business practices. This trend was previously being driven
by workers’ needs and preferences, gains in operational efficiency and cost-effectiveness, and pressure to reduce carbon footprints. It will now also be
driven by the more immediate pressures of the public health crisis. Tech companies are therefore using free trials to market their offerings and lock in long-
term loyalty from businesses in periods of transition.
Among the free trials on offer, some are targeting clients within the public sector, whilst others are reaching out to both public and private sectors (see
Figure 6). The majority fall into the former category, and are thus fostering positive PR for their brands whilst reaching a relatively untapped section of the
UC&C market. The latter category is home to established giants like Microsoft, Cisco and Google, and more recently Zoom, which having first made a bid
specifically for the education segment is now offering unlimited calls to free-plan users.

Figure 6
Summary of free trials
from leading UC&C
providers
Source: Company press
releases

18
 3
Diversification of the market is ramping up

The UC&C market will continue to diversify with disruptive new entrants
Despite the presence of established players, the market for UC&C will continue to expand at pace with other technological
advances. As recently as April 2020, for instance, the US telecoms giant Verizon acquired the BlueJeans video conferencing
platform. Verizon is a key player in the rollout of 5G connectivity, which will be another enabler of remote working. Remote

“
Tech companies working solutions like UC&C will be made massively more reliable and secure with 5G connection speeds, and Verizon makes sense
are using free as a UC&C provider. New entrants have come from other directions as well. The prior integration that gives Microsoft its edge in
trials to market the market is being challenged by offerings like Facebook’s Workplace social network and Google’s G Suite. Neither of these has
their offerings fully realized its potential in the UC&C space, but both could still cause disruption during a remote working transition.
and lock in long-
term loyalty from Cloud services have also become vital
businesses in A key technology which underpins UC&C, as well as increasingly underpinning business’ general IT infrastructure, is cloud storage.
periods of As remote working has accelerated the uptake of UC&C services, the migration of businesses to the cloud has in turn been sped
transition up. The tech giants are again the main winners here; Amazon, Microsoft, Google and Tencent dominate the market. There will also
be lost business for these companies, as potential enterprise-scale clients which are struggling financially amidst the pandemic
postpone their previous cloud migration plans. However, whilst the impact of this lost business remains to be seen, the new
imperative for cloud migration is likely to bring in more business from clients who have instead had to scale up their migration.

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1 Pharma and Medical Devices

2 Food Retail and Delivery

3 UC&C Providers

4 Consumer Tech Services

5 Private Equity Funds

 4 Social media and streaming are benefitting from
captive audiences

The tech companies which appear to have received the greatest uplift from consumers in lockdown are streaming and social media
platforms (Figure 7). There is a larger captive audience for these services, which are gaining a greater share of attention. For the
streamers the uplift will be temporary, but it has come at a crucial time for new players in the field building their subscriber bases.
Social media companies, meanwhile, have gained daily active users for a variety of use-cases, and will have varying retention after
lockdown.

Streamers’ preparedness for long-term impacts will vary

Apple TV+ and Disney+ have joined the likes of Netflix, Amazon and Hulu as the latest online-only streaming services, and bring their
own USPs. Apple’s USP is its integration with Apple devices and a competing range of original content, whilst Disney has a vast backlog
of already familiar content.
Quarterly earnings reports have shown big gains for these new players, some even ahead of the pace of the market-leader Netflix.
Disney+ managed to gain 54.5 million subscribers in the six months from November 2019, whilst Netflix reached its Q1 2020 total of
182 million after five years of operation. Netflix was a pioneer in online video streaming, and has laid a lot of the groundwork for
players like Disney+ to build upon.

Keeping users locked in will differentiate more established players

The biggest ‘winner’ from consumer lockdown will be judged by their retention of new users once normality returns. The impact of
halted content production will be severe for new streamers which lack Netflix’s momentum. Netflix’s letter to shareholders with its Q1
earnings report stated that there was enough content either completed or in post-production to see the company pumping out new
releases for the rest of the year and even into 2021. That could be a daunting challenge for Disney and Apple.
Whatever the state of content production during the next couple of years, the content budgets of these companies could be at risk Figure X7
Figure
when revenues fall in other areas of their businesses. Apple has seen its device sales decline, and Disney’s streaming gains have done
Usership gains for streaming platforms, Q1 2020.
little to offset its income losses from theme parks and cruises, the latter of which brought its quarterly operating income down by 58%.
Source: Company PressSource:
Releases

21
 4 Social media and streaming are benefitting from
captive audiences

Social media also needs to retain new users after lockdown

The factors behind increased uptake of social media are more complex than those for streaming services, and make
for a more complex range of users which companies will seek to retain after lockdowns are lifted. These factors
include:
 A captive audience with fewer ways to spend free time
 Use of social media as an outlet for pandemic-related news and updates from government
 The desire to maintain interaction with peers in isolation
 Interaction with brands and services
Despite strong gains in active users, Facebook and Twitter have both warned that users will drop off once
lockdowns are pulled back and people return to offices. This could, however, be mitigated by a large section of the
workforce remaining at home when some employers decide to make a permanent shift towards remote working.
The real risk for social media platforms which fail to retain their new users will be reductions in advertising spend.
Facebook in particular reported a sharp quarterly decline in ad-revenue as its partners cut non-essential costs,
unable to take advantage of the increase in the larger audience for their ads because of the wider economic crisis.
The on-demand advertising model means that these partners can drop Facebook immediately. Like the streaming
services, then, social media platforms will only be judged to have gained anything during the lockdown if they can
convert new users into sustainable gains in advertising revenue once those users are able to diversify their pursuits
outside of their homes.
Figure
Figure 8 X
Usership gains for social media platforms, Q1 2020.
Source: Company Press Releases
Source:

22
1 Pharma and Medical Devices

2 Food Retail and Delivery

3 UC&C Providers

4 Consumer Tech Services

5 Private Equity Funds

 5 Private Equity funds are eyeing up struggling
public companies

For private equity funds, the lockdown is placing obstacles in the

way of conventional activities, but these look to be easily
replaceable with other opportunities. A spike in offerings for private
investment in public equity (PIPE) suggests that private equity funds
will have ample choices for high-yield investments during the
pandemic, hedging their bets in public rather than private
companies. The COVID-19 financial crisis has created a huge
demand for emergency injections of cash, and the private equity
funds are more cash-rich than ever.

PIPE deals are already on the rise

As Figure 9 shows, the number of offerings for PIPE for public
companies was at a record high in 2019, and for 2020 up to May 11
there was a 17% year-on-year increase. This coincided with a
decrease in conventional private equity deals, which were down 7%
for the period, as COVID-19 weakened the prospects of the smaller
private companies usually targeted by those deals. This all mirrors
developments in 2017, at the start of the current boom in PIPE. The
impact of the pandemic on business has obviously been a major
driver of PIPE at the start of 2020, and so too has the huge amount
Figure
Figure X9
of capital that is locked up in the private equity funds, particularly in
the US. Activities of private equity funds 2016-2019 (up to 11/05/2020).
Source: MarketLine Deals Database
Source:

24
 5 Private equity funds are eyeing up struggling
public companies
Private equity funds have huge stores of cash to invest
It was widely reported at the start of 2020 that the amount of uninvested capital in private equity funds come January was at an all-time high of around
$1.5tr, much of which represents debt for those funds. The private equity sector has generally done extremely well since the 2008 financial crisis, when it

“
The amount of came to the rescue of various sinking companies in lieu of the big banks. The financial crisis brought about by COVID-19, which is expected only to deepen
uninvested until at least the first half of 2020, provides another opportunity for such rescue missions.
capital in private
equity funds Strong but struggling public companies present an opportunity
come January
Public companies which have been trading high since 2012, rewarding shareholders and buying back shares, now find themselves under-capitalized and
was at an all-time
with cash-flow problems as investor confidence plummets. This crisis of confidence gives private equity funds a way to put their cash to use in short-term
high of around investments, namely PIPE deals. The aim of the funds in these disastrous times will be to rescue the companies which have the best chances of recovery
$1.5tr after the initial shock of recession. The success of this strategy when it was last deployed during the 2008 financial crisis makes its use now seem
inevitable.

Top ten highest-value PIPE offerings in Q1 2020 The conditions for a storm of PIPE will be further enhanced by the
Announced Value (US$m) Company offering Fund acquiring
lack of competition for the equity at stake. Investments from
March 14,000.00 Alibaba Group Unconfirmed
corporate entities will be restrained because the business impact
May 3,304.65 Semiconductor Manufacturing Intl. Unconfirmed
January 2,900.00 Navistar International Corp Traton SE
of the pandemic will be ubiquitous. Meanwhile, private investors
February 2,842.40 Contemporary Amperex Tech. Unconfirmed with more short-term concerns are already showing alarm as
February 2,820.00 Bank of China Ltd Unconfirmed valuations tumble, and are unlikely to offer better lifelines than
April 2,500.00 The Charles Schwab Corp Unconfirmed the private equity funds.
February 2,310.00 Tesla Inc Unconfirmed
April 2,125.95 Lens Technology Co. Ltd. Unconfirmed
April 1,916.73 National Australia Bank Ltd Unconfirmed
April 1,817.29 ams AG Unconfirmed
Source: MarketLine Deals Database

25
Appendix

Sources
MarketLine Advantage
GlobalData Intelligence Centers
Office of National Statistics (ONS)
Company Press Releases

Further Reading
MarketLine Theme Reports
• Coronavirus (COVID-19) Executive Briefing
MarketLine Case Studies and Analyst Insights
• Manufacturers Retool in Lockdown
• Food Retail: Companies have taken innovative steps to survive during COVID-19
• COVID-19 therapy development: Pipeline continues to expand but vaccines remain underdeveloped

26
Appendix

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