Telehealth Deals Dial Up in Early 2017
Three telehealth deals have been announced in the first six weeks of 2017, an indication that this sub-sector of digital health is on track to set a(nother) M&A record. In 2016, eight of these deals were announced, an increase of 100% compared with 2014 and 60% versus 2015. Telehealth is loosely defined as the use of technology to support long-distance clinical healthcare. Some examples include live video between a patient and healthcare provider, transmission of medical images to a specialist, and remote monitoring which allows patients and providers to track vitals and manage chronic conditions. On February 2nd, 2017, Specialists On Call, Inc., a portfolio company of Warburg Pincus... Read More »Digital Health Off to a Strong Start in 2017
The eHealth sector has started off the New Year at an even faster pace than last year. In January 2017, 21 eHealth deals have been announced, a 91% increase from January 2016’s eHealth deals. The sector ended 2016 with 155 transactions Of course, there was the previously mentioned takeover of CoverMyMeds LLC by McKesson Corporation (NYSE: MCK), there have been a few other notable mentions. On January 4, 2017, Castlight Health Inc. (NYSE: CSLT) spent $135 million of its shares to acquire Jiff Inc. The company provides a HIPAA-compliant social network and digital health platform, which serves as a central hub for well-being and other benefit programs, with a single point of access for... Read More »Francisco Partners Exits CoverMyMeds for $1.1 Billion
Francisco Partners and McKesson Corp. (NYSE: MCK) are swapping companies again. Back in October 2013, the technology-focused private equity firm acquired McKesson Automation, which offers integrated pharmacy automation products for hospitals and health systems, thus streamlining the delivery of medications. Financial terms were not disclosed. In January 2017, McKesson acquired CoverMyMeds, LLC from Francisco Partners for $1.1 billion, and another $300 million if the company met future financial targets. To make things even cozier, McKesson and CoverMyMeds have partnered together to work with pharmacies since 2010. CoverMyMeds provides electronic prior authorization... Read More »December 2016 Didn’t Deliver a Year-End Boost
The final month of the fourth quarter is typically a busy one for deal makers in all industries. Last year, some health care deal makers apparently got a rest. Deal volume in December 2016 was an anemic 119 transactions, compared with 131 deals in November and 148 in December 2015. The Services sectors accounted for 55% of the deals in December, which is on the low side. Consider that, in November, Services accounted for 69% of the month’s transactions, and even 70% of the total in December 2015. Spending on those deals reached $15.4 billion, a relatively modest amount until it is compared with November’s $8.7 billion total (+78%) and December 2015’s $12.3 billion total (+26%). Suddenly,... Read More »Good-Bye, ACA. Now What?
And so it begins. A new year, a new administration, and a foreboding that things can and will go wildly out of control in the healthcare industry, as the new administration dismantles the Affordable Care Act and doesn’t bother to replace it. Judging from the market’s behavior since the November 8 election, the notion that a Hillary Clinton victory was “baked in” to every healthcare deal doesn’t hold. Certainly some deals may have been put on hold following Donald Trump’s election, but 2016 ended with 1,536 deals, in our preliminary count. That’s 1% higher than 2015, which was the first year to break 1,500 transactions. Spending on deals in 2016, while not in record territory, was healthy.... Read More »Schedule a demo
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