Investing in Solutions to the Opioid Crisis

Executive Summary

Opioids with high addictive potential have flooded the U.S. over the last decade. The addiction crisis has reached epic proportions, causing not only millions of deaths but also tremendous costs to society. Researchers and medical professionals recognize that addiction is a chronic disease, like diabetes or asthma. Addiction is also linked to poverty and trauma. Attempts to address the opioid crisis have been wide-ranging but insufficient. Expanded insurance coverage for behavioral health treatment has made an impact but much more is needed to ease the pain and suffering of affected communities. 

While private equity investors have attempted to scale addiction treatment programs, these interventions are highly priced and often not covered by insurance. Private investors can fulfill a vital role by supporting new and distinct approaches. Entrepreneurs are using data and analytics to reach the most vulnerable victims of the opioid crisis: infants, teens, and low-income individuals. Many available solutions include risk screening tools, prescription digital therapeutics, recovery care programs, and alternative pain medications and devices. These generate distinct but related types of impact, such as: reducing initial exposure to opioids, identifying behaviors associated with addiction, pain relief and enabling greater individual self-worth. Others include digital tools that enable peer-to-peer connection between individuals in recovery, and strengthen healthcare infrastructure through connecting pharmacists, providers, and patients. Some organizations and women’s shelters help prepare recovering individuals re-enter society with purpose and hope. However many of these solutions are relatively new and need capital to scale. 

This Market Overview explores ways in which investors can leverage capital to mitigate the opioid crisis. Existing solutions have both market potential and public health value. Investors should focus on their efficacy and ability to align the interests of payers, providers, and patients. These key determinants of success factor into impact measurement, which investors can integrate into their investment strategies. Investors no longer need to sit on the sidelines of the opioid crisis, and can instead be a part of the solution.