Follow the Funding, June 2017
Introducing a new monthly feature focused on various tranches and rounds of funding for healthcare ventures, startups and funds. Links indicate target companies and lead investors. TargetInvestorsAmountDate Bicycle TherapeuticsVertex Ventures HC, with new investors Cambridge Innovation Capital and Longwood Fund and existing investors Novartis Venture Fund, SROne, SVLS and Atlas Venture, with new investors Cambridge Innovation Capital and Longwood Fund and existing investors Novartis Venture Fund, SROne, SVLS and Atlas Ventures$51.4 million, Series BJune 1, 2017 Bright HealthGreenspring Associates, joined by Greycroft Partners, Redpoint Ventures and Cross Creek Advisors. Existing lead... Read More »Telehealth Deals Come Calling
Telehealth companies have proliferated rapidly in recent years, and so have mergers and acquisitions targeting them. In the first half of 2017, 11 deals have been made public for U.S. companies or physician groups specializing in telehealth, compared with 13 deals announced in all of 2016. The latest deal from Teladoc (NYSE: TDOC) adds a global component to its roster. On June 19, Teladoc announced the acquisition of Best Doctors, Inc., backed by Brown Brothers Harriman & Co. Best Doctors is a medical consultation company with a global network of more than 50,000 medical experts. These experts are peer-rated in a Gallup-certified poll as being in the top 5% of physicians in... Read More »Rehab Deals Have Risen Steadily Since 2013
The rehabilitation has historically been the smallest of all the healthcare sectors, typically accounting for the fewest number of deals and lowest dollar volume. Despite an abnormal 27 transactions announced in 2008, the sector generally saw between 10 and 20 deals a year, and minimal spending as well, (see chart below). Even after the Affordable Care Act was passed in 2010, when most health care services saw an influx in investment, the rehabilitation sector was largely ignored because some reimbursement headwinds at the time. But, as rehab facilities found their place in ACOs, reimbursement eased and large companies began to build their platforms in the highly fragmented sector,... Read More »PE Firms Team Up to Buy CROs
The contract research organization (CRO) industry continues to consolidate at a rapid pace in response to growing demand from pharmaceutical and biotechnology companies. But pharma and biotech serve as the customers in this industry, not the acquirers. Nearly all the buyers in 2017 are other CRO companies that are seeking scale. Private equity is also joining the party, accounting for the remaining portion of deals, including the largest disclosed deal this year. Last month, INC Research Holdings (NASDAQ: INCR) paid $4.6 billion for inVentiv Health, a CRO that also counts Advent International and Thomas H. Lee Partners as equal equity holders. The firms will retain their stakes following... Read More »
Tenet Healthcare Sheds its Health Plan Business
A recent Managed Care deal may portend more troubling news for the struggling industry. Lately, mergers and acquisitions in the sector have been driven by firms exiting the market due to rising costs. Even a network as large as Tenet Healthcare Corporation (NYSE: THC) cited rising costs and unanticipated losses as reasons for shedding its Health Plan Business. On June 1, 2017, Tenet Healthcare Corporation announced it was selling the Medicare Advantage and commercial group membership assets of its subsidiary, Allegian Health Plan, to Blue Cross and Blue Shield of Texas. The transaction includes nearly 20,000 members, enrolled through small, medium... Read More »Schedule a demo
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