Invitae Focuses on Digital Health Deals
Nearly every area of healthcare can benefit from enhanced digital health capabilities. That is one reason eHealth targets are now sought after by a variety of acquirers. Some recent deal activity shows how digital health intersects with the Laboratories, MRI & Dialysis sector. Invitae (NYSE: NVTA) is one of the fastest growing genetic information companies in the United States. The company processes DNA-containing samples, analyzes information about patient-specific genetic variation, and generates test reports for clinicians and their patients using an integrated portfolio of laboratory processes, software tools, and informatics capabilities. In 2017, the company has set its... Read More »
Investors Want Health Care Services with No Strings Attached
Preliminary data for the month of May shows an encouraging uptick in deal volume, with the services sectors making up 66% of the total. Some 134 transactions were announced last month, a 30% increase over April’s anemic 103 deal volume total. But monthly transaction totals in 2017 are not keeping pace with those in 2016. A year ago, 151 transactions were announced, 11% higher than in May 2017. There’s no question that the ongoing uncertainty surrounding the American Health Care Act hangs heavily on healthcare investors. The Senate Republicans have been at work behind closed doors to craft a different deal than the one sent to them by the House Republicans in mid-May. From the handful of... Read More »Digital Health Data Draws Big Money
Mergers and acquisitions in the eHealth sector are surging, and data is driving some of the biggest deals in health care. Deal volume in the digital health space went from 68 transactions in 2013 to 157 announced in 2016, a 131% increase. Transaction levels remained in the double-digits from 2000 until 2012, when 103 digital deals were recorded. Since 2014, when annual deal volume reached triple-digits, M&A has grown almost exponentially. Dollar volume shot up as well, growing from annual totals in the hundreds of millions early in the century to seven-figure totals beginning in 2005. The $11.5 billion total logged in 2009 was something of a milestone. The $20.2 billion total posted in... Read More »Financial Buyers Announce 59 Deals in Q1:17
Financial buyers, which include real estate investment trusts and private equity firms, are not the dominant players in the health care M&A market. Their participation depends on many factors, with valuations being an important determinant, (see chart below). Middle-market private equity firms, in particular, have had a hard time getting into and then winning auctions for health care entities in the past few years, as strategic buyers have outspent or even pre-empted auctions. In the first quarter, financial buyers accounted for 15% of the deal volume, with 59 deals, which is slightly lower than the previous four quarters. The first quarter featured eight deals that topped the $1.0... Read More »Q1:17 eHealth Deals Rise 57%
Merger and acquisition activity in the eHealth sector surged in the first quarter, as investors stuck with healthcare information technology in the face of the Republicans’ effort to upend the Affordable Care Act. Deal volume rose 57% to 47 transactions compared with the previous quarter, and was up 24% compared with the first quarter in 2016. This recent quarter accounted for 28% of the 166 deals announced in the previous 12 months. Source: HealthCareMandA.com, April 2017 Of the 47 deals announced in Q1:17, only six disclosed a price, for a total of $1.9 billion. This quarter’s spending represents a 586% increase compared with the previous quarter, but a 57% decrease from the same quarter... Read More »Schedule a demo
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