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HealthTech Heartbeat – Q3 2018 Market Review

By Henry Barnes 11 Oct 2018

Welcome to the Q3 2018 edition of the HealthTech Heartbeat – Results International’s quarterly market update of the healthtech segment covering both biopharma and healthcare IT.

Highlights in the quarter include:

  • Results’ Global Healthcare indices are the highest they have been all year, primarily driven by biopharma IT which is up 23.9% in Q3 alone
  • There have been a number of notable transactions in the quarter
    • Global Payments’ acquisition of AdvancedMD from Marlin Equity Partners, its first foray into healthtech and medical related software, which at 5.6x revenue is the highest disclosed multiple in the HealthTech Heartbeat this quarter. This transaction once again demonstrates that healthcare’s favourable market dynamics continue to attract investment from new market entrants
    • Hg Capital acquired 75% of Orion’s Rhapsody division for $138.5m (helps healthcare providers pull together patient data from different sources) and 25% of Orion’s Population Health business. This is likely to result in Orion fully delisting in the future

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  • The strong activity in the sector was also demonstrated by the first IPO since September 2016
    • Sensyne Health IPO’d on AIM in August and has a current market value of $323m
      • Having partnered with and received funding from several NHS Trusts, Sensyne Health is trying to use NHS data for artificial intelligence purposes. The Directors believe that this will provide the company with a first mover advantage in the use of AI to improve patient care and accelerate medical research in partnership with NHS Trusts
      • Separately, continuing to unlock the NHS’ vast dataset will also provide others with the hope of receiving greater data access to augment their software capabilities
      • Note we have not included Sensyne Health within our analysis for this quarter as its software is still pre-revenue generating, although there is ongoing dialogue with US hospitals to monetise its platform overseas
  • Q3 has also witnessed the first IPO filing from an Israel-based healthtech provider. Max Q AI, a brain scan imaging and diagnostic company, intends to raise up to $8m in order to secure US FDA regulatory approval

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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Henry Barnes

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