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Thank you for visiting HealthcareBanker.com a news aggregator of middle-market mergers and acquisition activity in the healthcare industries. This site addresses investment banking topics dealing with M&A, Capital Raising, Borrowing/Lending and other Corporate Development and Finance activities within the Healthcare Services, Healthcare IT, Medical Device, and Life Science industries.

Wednesday, December 9, 2015

Tech Enabled Concierge Medicine Attracting Big Bucks

One Medical Raises $65 Million to Expand “Concierge” Doctor Network


(from Xconomy)

Does your health plan make you feel like a second class citizen, languishing in a doctor’s crowded waiting room? Technology startups are trying to cure such doldrums—not by competing with medical insurance companies, but by offering add-on services they claim will make health care more effective or convenient.

One of the startups making that pitch, San Francisco-based One Medical Group, announced today it raised $65 million to expand its national network of primary care doctors and to further develop the digital technologies that enhance their services. Individual patients who each pay a $149 annual membership fee to One Medical can make same-day appointments online, see a physician in the evening or on weekends, consult their doctors by phone or e-mail, and use a mobile device camera to send in photos of routine skin irritations.

Thursday, December 3, 2015

What A CEO Should Be Prepared To Answer When Considering Raising Capital Or Selling

5 Questions Investment Bankers Ask CEOs on the First Call

(from Axial)

To a CEO who has never sold a company or raised capital, the prospect of speaking with investment bankers and M&A advisors for the first time can feel daunting.

While it’s easy to push these conversations to the bottom of (or even off) the to-do list, preparing for the next stage of your business is just as essential as running your core business. Even if you’re not looking to transact in the near term, bankers and advisors can help you understand what to do now to guarantee more value in a transaction years down the road.
Here are five questions CEOs can expect on an introductory call with a banker or advisor:

Wednesday, November 4, 2015

Should Venture Capital Be Concerned With Digital Health Investments?

Large Series A financings are a worrying digital health investment trend


(from MedCity News)

The recent large Series A financings in digital health caught my attention. Clover grabbed $100 million in equity and debt financing, Color Genomics raised $15 million, Cure Forward raised $15 million, Honor raised $20 million and Lyra Health raised a whopping $35 million.

One could argue that a data-driven insurance company like Clover will absolutely need every penny of the $100 million, but handing $35 million to a brand new company targeting behavioral health solutions, like Lyra, doesn’t make a lot of sense to me.

Tuesday, October 27, 2015

No Slowing in VC Funding for Digital Health

Venture capital funding for healthcare technology rebounds, investors log $1.6 billion in deals in Q3


Venture capital funding for digital health rebounded in the third quarter of 2015, up 32 percent quarter over quarter with $1.6 billion doled out across 148 deals, according to a new report from Mercom Capital Group. 

VC cash for health IT has hit $3.57 billion in 2015 so far. 

"VC funding into healthcare IT companies bounced back this quarter after a slow start this year," said Mercom Capital CEO Raj Prabhu, in a statement. 

Most of the growth came from funding for technologies aimed at the public. Companies focused on the provider side gathered $357 million in 42 deals (compared to $473 million in 41 deals in Q2 2015). Consumer-focused firms raked in $1.2 billion in 106 deals this quarter compared to ($727 million in 98 deals in Q2 2015).

Friday, October 16, 2015

Seed Funds Laging For New Med Tech

Med tech VC financing tops $800M, but funding for new companies remains scarce

(from fierce medical devices)

Med tech companies raised $821 million in venture capital money during the third quarter, the most since Q2 2011, according to the MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association based on data provided by Thomson Reuters. It is one of the most impressive numbers on record, barring unsustainable heights close to or beyond the $1 billion mark reached during the run-up to the financial crisis is in 2007 and 2008.

But former AdvaMed CEO Stephen Ubl was not wrong to bemoan the state of med tech VC during the association's annual med tech conference. It remains true that U.S. VCs have less preference for med tech (but not biotech) investing these days, especially in early-stage companies. Stringent public and private insurance company reimbursement is often blamed as the latest contributor to the malaise.

Tuesday, October 13, 2015

2015 Q3 Healthcare M&A Record Deals


Q3:15 Health Care M&A, By Sector

(from Levin & Associates)

Health care M&A in the third quarter was quite robust, with 385 transactions reported across 13 sectors. That’s a new record for any third quarter, by the way. We’ll have the full break-out in The Health Care M&A Report, Third Quarter 2015, due to be published by the end of this month. In the meantime, here’s how the sectors fared in Q3:15.

Wednesday, October 7, 2015

OfferBoard Raising Capital for Breakthrough Heart Disease Screening Device

Heart Test Laboratories, Inc. Engages OfferBoard Securities for Capital Raise to Bring Next Gen EKG to Market


OfferBoard Securities, LLC announces it has been retained by medical device company Heart Test Laboratories, Inc. to provide investment banking services and assist with raising capital to bring the next generation EKG device (MyoVista) to market.

Heart Test Labs mission is to provide accurate, affordable screening tools for the early detection of heart disease, and the MyoVista is the culmination of over 15 years of R&D and $15MM invested to date. OfferBoard Securities, a national investment bank and broker-dealer, will assist Heart Test Labs with raising $2 million in order to fund inventory, working capital and support selling the MyoVista by early 2016. 
“Heart disease is common and deadly but treatable if detected early. Unfortunately we still live in a world where most people find out about their condition through a heart attack or worse death” said Heart Test Labs Chairman Andrew Simpson. “While cardiologists have the tools for effective treatment of heart disease,” continued Simpson, “the big diagnostic gap is identifying at an early stage who should seek treatment. This is where the MyoVista comes into play.”

Tuesday, September 29, 2015

Biotech Investing Cooling Off?

Amid Biotech Swoon, Third Rock’s MyoKardia Tees up IPO


(from Xconomy)

Does the biotech bull market still have a pulse? MyoKardia, a three-year-old startup developing heart drugs, will soon try to find out.

The San Francisco-based company filed papers with the SEC on Monday to go public and trade on the Nasdaq under the ticker symbol “MYOK.” MyoKardia would use the cash to advance its work in drugs for certain forms of genetically triggered heart disease, like hypertrophic cardiomyopathy (HCM). And it’ll ask investors to buy into a company without a whole lot of clinical data as of yet—the first of its prospects, a drug known as MYK-461, is in Phase 1 tests that are expected to wrap up in the middle of next year.

Tuesday, September 22, 2015

Benefits of Diversifying Hospital Acquisitions

Why Hospitals Should Buy IT Startups

Execs must 'avoid the trap of viewing deals as one-off opportunities' 

Lots of hospitals are snapping up clinics and physician practices. One major consultancy recommends they also consider acquiring digital health startups and other vertically-integrated companies.

The advice comes amid a record timespan in healthcare mergers and acquisitions.

Healthcare M&A in the U.S., in fact, totaled $241 billion by May 2015, the highest year-to-date figure ever, according to a new report from Accenture. And such changes in the healthcare landscape should prompt executives to look at asset accumulation differently.

Friday, September 18, 2015

Another Massive Biotech Fund In The Works


OrbiMed sets its sights on a $950M blockbuster biotech fund

(from Fierce Biotech

Less than two years after OrbiMed unleashed its last big biotech fund, the venture group is going back to the well to piece together an even bigger, $950 million cache of cash.

OrbiMed outlined its plans for the blockbuster Fund VI in a filing with the SEC. A spokesperson for the group declined comment on the fund's plans when contacted by FierceBiotech, noting that the offering is ongoing.

Back in the fall of 2013, OrbiMed had set out with plans to invest $735 million in around 30 biopharma, devices and diagnostics companies, gambling up to $50 million on each. During that time, the venture player has been a prolific player while the industry has boomed around the world.

Tuesday, September 8, 2015

Molina Investing In Behavioral & Mental Health

Molina Healthcare to Acquire Providence Human Services and Providence Community Services, the Behavioral and Mental Health Subsidiaries of the Providence Service Corporation

Molina Healthcare, Inc. (NYSE: MOH) and The Providence Service Corporation (NASDAQ: PRSC) together announced today that the parties have entered into a definitive agreement whereby Molina Healthcare will acquire all the outstanding ownership interests of Providence Human Services, LLC (PHS) and Providence Community Services, LLC (PCS), both wholly owned subsidiaries of The Providence Service Corporation. Under the terms of the acquisition agreement, Molina will pay The Providence Service Corporation approximately $200 million upon the closing of the transaction, which will be subject to customary working capital adjustments. Molina intends to fund the transaction with available cash on its balance sheet. The transaction is expected to close during the fourth quarter of 2015, subject to regulatory approvals and the satisfaction of other closing conditions.

Tuesday, August 25, 2015

New Fund for Life Sciences & Healthcare IT

Hatteras Venture Closes $90M Life Sciences, Health IT Fund


(from Exome)

Hatteras Venture Partners has reloaded, closing a new fund this morning to make a fresh round of investments in life science and health IT companies.
The Durham, NC-based venture capital firm has raised more than $90 million for the fund, the company’s fifth. Ireland-based Malin (ISE: MLC) led the investment, which could reach as much as $150 million and be the firm’s largest fund to date.

Clay Thorp, a Hatteras co-founder and general partner, says Malin will broaden the opportunities for the firm’s portfolio companies by helping to connect startups to its network of potential partners. Malin already has some connections to Hatteras companies. The company last fall participated in the $60 million Series D round for Viamet Pharmaceuticals, and in March, led a $50 million investment in Novan Therapeutics, both Durham-based Hatteras portfolio companies. Rather than operate as an investment firm, Thorp describes Malin as a holding company with “long-term, patient capital.” He says the approach to building long-term value could give Hatteras portfolio companies additional options besides an initial public stock offering or an acquisition.

Wednesday, August 19, 2015

Moody's Upbeat On Medical Devices

Moody's: US medical devices outlook brightens on M&A synergies, new products and admission trends

(from Moody's)

Global Credit Research - 18 Aug 2015

New York, August 18, 2015 -- The US medical products and devices industry will see solid EBITDA growth over the next 12 to 18 months, driven by large M&A deals, new products and an uptick in growth of hospital admissions, says Moody's Investors Service. The rating agency has revised its outlook to positive from stable on the industry.

"While effects from foreign exchange will show lower year-over-year growth over the next one to two quarters, we expect EBITDA growth of 4%-5% for most of the outlook period," says Diana Lee, a Moody's Vice President - Senior Credit Officer.

Monday, August 17, 2015

Medtech Breast Cancer Screening Saves Lives & Money

Breakthrough Mayo Clinic Study Highlights MBI Secondary Screening Technology as a Cost-Effective Way to Increase Accurate Breast Cancer Diagnoses

(from Fierce Medical Devices)

Four-fold increase in cancer detection rates seen in the 45 percent of women with dense breast tissue and 15 percent cost reduction per cancer detected

SALEM, N.H., Aug. 17, 2015 /PRNewswire/ -- A recent study conducted by Mayo Clinic has determined that the addition of Molecular Breast Imaging (MBI) for women with dense breast tissue resulted in a lower cost per cancer detected than screening with mammography alone. The MBI technology known as LumaGEM®, developed and commercialized by Gamma Medica, Inc., is a cost-effective tool for detecting early stage cancers in women who have dense breast tissue, which accounts for 45 percent of all women. The study, published in the American Journal of Roentgenology (AJR), entitled,"Diagnostic Workup and Costs of a Single Supplemental Molecular Breast Imaging Screen of Mammographically Dense Breasts," found MBI technologies led to more accurate diagnosis rates, and in combination with mammography, resulted in a cost savings of approximately 15 percent.

Wednesday, August 12, 2015

Biotech IPO's Still HOT

Global Blood Thera Nabs $120M IPO, Doubles Share Price On First Day

(from exome)

[Updated with first-day trading information, 1pm, 8/12/15.] The biotech bull run rolls on. Halfway through its first day of trading Wednesday, Global Blood Therapeutics has nearly doubled its share price, which for now makes the four-year-old company worth more than $1 billion.

The firm sold 6 million shares at $20 each to raise $120 million in its initial public offering Tuesday, despite having the barest of clinical information about its lead product, a chronic treatment for sickle cell disease.

Monday, August 10, 2015

Hospitalist Group Sells Big


IPC Healthcare of North Hollywood to be acquired for $1.6 billion

(from latimes)

IPC Healthcare Inc., a North Hollywood company that provides doctors to hospitals and other medical facilities across the United States, agreed Tuesday to be acquired by a Tennessee company for about $1.6 billion.

Team Health Holdings Inc. of Knoxville will pay $80.25 a share for IPC in an all-cash deal it said would create “the nation's leading physician services organization.”

Team Health's offer was a 37% premium above IPC's closing price of $58.46 on Monday. IPC's stock jumped on the news, gaining $20.79, or 36%, to close Tuesday at $79.25.

Friday, August 7, 2015

Top 15 PE Healthcare Investing Niches


Private equity investment in healthcare: 15 healthcare investment niches — A review of key sectors for 2015


(from Becker's Hospital Review)

Private equity investment in healthcare continues to grow considerably. This article provides thoughts, observations and insights on 15 investment niches. It also provides some initial thoughts on the market as a whole.

Here, we divide the article into three parts. First, there is a review of investment by private equity as a whole. Second, the article discusses the largest investment areas – for-profit hospitals and health systems, health information technology – EHR, laboratory business, medical devices and behavioral health. Third, it discusses 10 other areas including urgent care, dental practice management, ambulatory surgery centers, dermatology, care and case management, back office services for ACOs and population health, anesthesia practice management, revenue cycle management, pharmacy and pain management.

Wednesday, August 5, 2015

Cannabis Pharma Gets High on IPO


Cannabis patch startup pulls off a $42M IPO to fund drugs for epilepsy, pain

(from Fierce Biotech)

Pennsylvania drugmaker Zynerba Pharmaceuticals ($ZYNE) is making its way to Wall Street with some cannabis-derived treatments for central nervous system disorders, raising $42 million in an IPO.

The company priced 3 million shares at $14 each, the middle of its range, and set aside another 450,000 shares for its underwriters to line up for as much as $51.8 million in total.

With the proceeds, Zynerba will press forward with a pair of early-stage transdermal patches that mete out cannabinoid chemicals to treat a host of CNS ailments. ZYN002, slated to enter clinical trials in the second half, has shown promise in refractory epilepsy, Fragile X syndrome and osteoarthritis pain, the company said. And ZYN001, in line for Phase I next year, targets fibromyalgia and peripheral neuropathic pain.

Wednesday, July 29, 2015

Digital Health Marketing Betting on Social Networks



Physicians Interactive acquires maker of doctor social network QuantiaMD

(from mobihealthnews)

Physicians Interactive (PI), the digital health marketing company that offers medical reference apps and resources like Omnio to physicians, has acquired Waltham, Massachusetts-based Quantia Communications, parent company of physician social network QuantiaMD.

The acquisition, the terms of which were undisclosed, adds the first peer-to-peer network to PI’s platform, which already includes a number of different resources for physicians and, as of last year’s acquisition, patient-facing health company MedHelp.

Thursday, July 23, 2015

Nursing Homes Going For Big Money

SNF M&A Market Remains Robust

(from The Senior Care Investor)

With at least five transactions priced over $100,000 per bed so far this month, July may be a record for high-priced SNF sales.

The skilled nursing facility M&A market continues to lead the way in terms of where the post-acute sector may be heading. So far in the past three weeks, we have seen five deals close with values ranging from just over $100,000 per bed to over $200,000 per bed.

Monday, July 20, 2015

A-Listers Getting Into Telehealth Game


Pager Raises $14 Million from Ashton Kutcher’s Sound Ventures, NEA 


(from WSJ)

Pager, an app that allows New Yorkers to request at-home visits from doctors and nurses, has raised new funding from Ashton Kutcher’s Sound Ventures and New Enterprise Associates at a valuation of about $75 million.

The $14 million in Series A funding will be used to further develop its technology, said Pager co-founder and Chief Executive Gaspard de Dreuzy.

“We want to keep matching patients with the right type of care, whether it’s an in-person visit or a virtual consultation,” said Mr. de Dreuzy.

The service currently allows users to request in-home doctor visits between 8 a.m. and 10 p.m. daily, after first attempting to diagnose users over the phone. Doctors, sourced from local hospitals, can also provide prescriptions through the app, which can be reimbursed by insurers.

Tuesday, July 14, 2015

Investing in Wellness Not Medicine

With $36M Funding, Arivale Walks Line To Push Wellness Business 

(from Xconomy)

They employ doctors, prescribe tests, and for $2,000 a year they’ll help you keep on top of your health, but they don’t diagnose illnesses. That’s the line new Seattle health startup Arivale wants to walk in providing “wellness” help to its customers—who, Arivale officials stress, are “participants,” not patients.

“We aspire to help people optimize their current health,” says CEO Clayton Lewis.

Now Arivale has a big bankroll and backers to expand from Seattle into San Francisco and beyond. The company has secured a $36 million Series B round from Arch Venture Partners, Polaris Partners, and Maveron, a fund cofounded by Starbucks mogul Howard Schultz.

Wednesday, July 8, 2015

Money Being Pumped Into Digital Health


With $2.1B in digital health funding, first half of 2015 is keeping pace with 2014  

(from Rock Health)

At the end of the first quarter, it was too early to tell if digital health funding could keep up with the record-breaking growth in 2014. But now at the half-year mark, investors have spoken—digital health isn’t slowing down with 2015 bringing in $2.1B in funding, just short of the same time period in 2014. There were 139 deals and the average deal size was over $15M, exceeding 2014’s $14.6M. (Note: Our venture funding data only includes disclosed US deals over $2M. Companies that are sector-agnostic with a healthcare vertical are excluded.)

Tuesday, July 7, 2015

Smart Phones on the Front Line of Medicine

UK startup Your.MD raises $5M for symptom checker app


(from Mobile Health News)

London-based Your.MD, which has developed a health management app that includes a symptom checker, raised $5 million in a round led by Smedvig Capital, with participation from existing angel investors. This brings the company’s total funding to $7.3 million.

The app, available on iOS and Android devices, allows users to explain what their complaints are to the app via voice or text. Next, users enter additional symptoms and other personal information, like their ages and genders. Your.MD will then ask the user up to three follow-up questions to improve the accuracy of the results.

Monday, July 6, 2015

Healthcare M&A Making Bankers Money

Boom times for healthcare mergers bring bankers 59% rise in fees 

(from The Economic Times)

LONDON: A surge in mergers and acquisitions in the healthcare sector has been a windfall for investment bankers, with fees from activity in the sector up 59 per cent in the first half of 2015, according to Thomson Reuters data.

Goldman Sachs commanded 11.8 per cent of all healthcare fees, followed by JP Morgan with 11.2 per cent and Morgan Stanley with 6.9 per cent.

Wednesday, July 1, 2015

Senior Home Care Going High Tech


HomeHero Locks Down $23M For Its Home Care Marketplace


(from Tech Crunch)

HomeHero, a Santa Monica-based startup that works to connect home care workers with the families that need them, announced today that it has raised $23 million. The sum includes a $20 million Series A round of capital, in addition to a previously undisclosed $3 million capital event. The funding was led by Graham Holdings.

I met the HomeHero founders, Kyle Hill and Mike Townsend, after their last startup, FlowTab, wound up its operations. Over the course of several interviews with them, I chronicled their progress with FlowTab and ultimate decision to shutter the startup.

Tuesday, June 23, 2015

Making it Rain on the LIfe Sciences

#BIO2015: What life sciences sectors are ripe for M&A?


(from MedCity News)

In this bullish life sciences market, which sectors are most ripe for acquisition? Which assets will have a tougher time to sell?

A report, released at this week’s BIO International Convention in Philadelphia by management consultancy Campbell Alliance, laid out a number of interesting insights on the M&A environment in the life sciences. Study author Neel Patel discussed the results.

Telemedicine Going Mainstream

Teladoc’s IPO telegraphs telemedicine’s prime-time debut

(from VentureBeat)

Teladoc CEO Jason Gorevic is now on the road talking to institutional investors about his company’s upcoming IPO, a Teladoc spokesperson told VentureBeat Monday. Many will be watching the Teladoc CEO with interest to see if Wall Street is truly warming up to digital health companies.

Teladoc filed (private) documents for its public offering in late April, but have yet to announce an official date for the outing. A public S-1 appeared in early June, stating that the company hopes to raise $137 million.

Wednesday, June 17, 2015

Must read White Paper on Private Placements in the Life Sciences Industry.



WHITE PAPER RELEASE: Private Placements in the Life Sciences Industry

(from OfferBoard)

For many life science startups, traditional funding sources, like federal and university grants, can be difficult to obtain and often only cover a portion of administrative, research and development expenses. As a result, equity crowdfunding has become an interesting and viable fundraising alternative. Offerboard’s research team recently published its inaugural white paper on fundraising activity in life sciences industry , as reported through the end of the 2014 calendar year.

Monday, June 15, 2015

Corporate Venture Capital 101 For Life Sciences


Statement of Strategics in Life Sciences

(from Lake Whillans)

For healthcare startups seeking private investment, there are more sources than ever. But there is also more peril. Traditional routes, like venture capital and angel investors, are joined by corporate venture capital, a broader array of grant opportunities, venture philanthropy, crowdfunding and beyond.

Corporate venture capital has become particularly popular. But there isn't as much critical information about corporate investors and their strategies. Which is the most trustworthy? Which is the best to partner with? Which one would you never do a deal with again? We believe that the answers to these questions can be critical to the success of a growing business; the right partner can provide synergies and non cash resources to catapult the business to success, while the wrong partner might swipe critical IP that entangles a company in litigation.

Friday, June 12, 2015

Follow the Leader - Who is Taking Charge in Healthcare Startup Investments

A growing problem for healthcare startups seeking investment: (Almost) no one wants to lead

(from MedCity News)

It’s early on at today’s Redefining Early Stage Investments (RESI) Conference in Houston. But here’s one phrase I’ve already heard too often: We don’t lead. Anyone in any sector that’s tried to raise capital has heard that phrase — sometimes for good reasons. But it’s going to be heard too often as healthcare investing continues to evolve. Healthcare needs leaders.

More and more corporate venture capitalists won’t lead, for example. Yet, in many cases, they ask an awful lot from a startup. A Shire representative told attendees in Houston that Shire invests largely to acquire, will look to acquire the technology but not the whole company, and won’t lead. That’s not ideal for an early-stage company, which would prefer to keep its M&A options open.

Thursday, June 11, 2015

Should Physicians Invest in Private Placements to Diversify Portfolio?

As an investment banker that specializes in the healthcare industry and who has consulted with over a thousand physicians, I can understand their apprehension when it comes to investing in opportunities that are not generally available to the public, in this case private placements. The notion of investing in an opportunity that seems “exclusive” with the potential for extraordinary returns can lead someone to believe that if it sounds to good to be true then it must be, particularly among physicians who are used to being courted all the time by third parties interested in their business.

However, while it is necessary for anyone who is considering investing in a private placement to conduct a thorough due diligence on the offering, I also think that physicians who qualify as accredited investors shouldn’t discount private placements as a viable way to diversify their portfolios, particularly if its in an area in which they may have some knowledge or professional interest in such as medical device companies or bio-techs that are starting up or looking to grow and require capital. My feeling is that if a physician were presented with an investment opportunity in a business with which they can relate to, they may be more inclined to take on some risks if doing so meant bringing to market a product or service that could benefit their patients or the healthcare community at large, while providing a nice return on their investment.

Here is a link to an interesting article on Using Private Placements As a Component of Your IRA Portfolio...