Noteworthy Deals of The Second Quarter of 2023
With 586 transactions in the second quarter of 2023, we want to take a moment to look at several that are interesting, whether in purchase price or size of assets. Merck & Co. Acquires Prometheus Biosciences On April 17, Merck & Co announced that it acquired Prometheus Biosciences for $10.8 billion. Prometheus Biosciences is a clinical-stage biotechnology company that specializes in treating immune-mediated diseases. This acquisition represents the largest purchase price of the quarter, regardless of sector. Robert M. Davis, chairman and chief executive officer of Merck had this to say. “The Prometheus acquisition accelerates our growing presence in immunology,... Read More »
Medicare Is Driving the Shift to Value-Based Care
Takeaways from AHLA’s Health Care Transactions Conference Value-based care has arrived and it is here to stay. That was the consensus shared by panelists at the Health Care Transactions conference hosted by the American Health Law Association in April 2023 in Nashville. “Throughout my entire career, I’ve been hearing that value-based care is ‘maybe only five years away,’” Jim Cotelingam, the chief strategy officer for the Cleveland Clinic, said during the opening panel. “I’ve been hearing that for 25 years. But I think this time is actually different.” Levin Associates was in attendance at the conference and the insights shared below are from panel... Read More »
Recap of Cain Brothers Industry Insights
Last week, Jonah Schutzman, of Cain Brothers, provided banker commentary on the current state of physician specialty consolidation in the company’s weekly Industry Insights report. In short, the pandemic ignited an acceleration of consolidation among physicians with non-IDN (integrated delivery network) corporations that included insurers, private equity groups and non-provider umbrella organizations at the forefront. The report referenced data from an Avalere and Physicians Advocacy Institute report showing that three out of four physicians are employed by a non-physician-owned company, which represents a 19% increase from the previous three years. In contrast, hospitals employ more than... Read More »
Healthcare M&A Deal Volume Plummets 30% in January Amid ‘Fear, Uncertainty, Doubt’
Industry professionals involved in healthcare M&A transactions saw a drastic decline in deal volume during the first month of 2023. According to data captured in the LevinPro HC database, 210 transactions were reported in January. This represents a 30% decline compared to the 301 deals posted in January 2022. A record 2,397 transactions were reported in 2022 following 2,218 deals in 2021. There were 59 transactions in January 2022 with reported prices that totaled approximately $26.2 billion. The recently concluded month featured 36 deals with reported prices that totaled about $7.9 billion for a total price decline of 70%. “No sector [including health care] has been immune to... Read More »
Digital Health and Fertility Targeted by Venture Capital
Venture capital (VC) is playing an increasing role in health care as companies are desperate for the resources, expertise and funding that VC firms provide. According to SVB Financial Group’s annual Healthcare Investments and Exits Report, healthcare venture capital funding totaled nearly $22 billion in 2022, and over the last 24 months, there has been more than $50 billion in newly raised health care funds. This falls short of the $28 billion raised in 2021, which was a record. SVB’s report also noted that while there was a dip in funding in 2022, VC fundraising and investment remained strong throughout the year as there were more healthcare investments than in 2020. Due to public market... Read More »Schedule a demo
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