Welcome to the Q3 2017 edition of the HealthTech Heartbeat – Results International’s quarterly market update of the HealthTech segment covering both Biopharma and Healthcare IT.
Buoyed by the strong performances of Inovalon (up 29.7%) and Tabula Rasa Healthcare (up 77.7%) in Q3 2017, the Results International Global HealthTech index continued to rise over the period and is now up 14.9% on Q3-end 2016, concluding a 12 month period where Biopharma and European Healthcare IT stocks in particular have seen strong gains. The quarter also included a number of acquisitions by listed players including Tabula Rasa (acquired medication therapy management solutions provider, SinfoniaRx), Evolent (acquired predictive analytics software provider, Accordion Health) and Allscripts.
Allscripts spent $185m acquiring McKesson’s Enterprise Information Solutions and exchanged its stake in NantHealth for ownership of NantHealth’s Patient and Provider Engagement Solutions, capping off transactions between major listed HealthTech players in the quarter. The quarter’s biggest deal was by UnitedHealth Group’s subsidiary, Optum, which acquired The Advisory Board’s healthcare consulting services and technology business for $1.3bn in another high profile deal demonstrating the crossover between technology and services. Another notable deal included contract research organisation PRA Health Science’s $530m acquisition of health data and analytics solutions provider, Symphony Health, highlighting the breadth of potential buyer interest in data-driven healthcare solutions.
A strong quarter for M&A (we tracked a total of 63 transactions) was matched by European fundraisings, with six deals of c.$10m or more spanning a diversity of solutions. Sophia Genetics, a Swiss-based analytics company, raised $30m in a Series D round to support further development of its genomic big data analytics platform. Additionally two UK-based businesses iESO, a digital behavioural health delivery platform, and Push Doctor, an online healthcare consultations provider, both raised $20m+ rounds in one of the highest quarters by funds raised for European HealthTech to date.
M&A activity in the sector remains healthy and fundraising appetite strong. As a result, now is a good time to be contemplating fundraising, exit or growth through acquisition in the HealthTech space – if you are, please do get in touch.
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