Private Equity

UK drugmaker GSK under fresh pressure to sell consumer arm

Hedge fund Bluebell also demands replacement of GlaxoSmithKline chairman Sir Jonathan Symonds The British drugmaker GlaxoSmithKline has come under fresh pressure to sell off its consumer arm and carry out a change of leadership, with a hedge fund demanding the appointment of a new chairman. Bluebell Capital Partners, an activist London-based hedge fund that has …

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New WCAS Portfolio Company Valtruis Leads Cricket Health’s $83.5M Funding Round

When private equity giant Welsh, Carson, Anderson & Stowe (WCAS) launched its new portfolio company Valtruis last week, it dedicated the new venture to value-based care. And while Valtruis didn’t specify its exact investment areas, it seemed likely that “the home” would play a big part, given the rise of new in-home care models. “We’re …

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Carlyle ups bid for inhaler firm Vectura, trumping tobacco giant Philip Morris

Offer for UK company from Marlboro cigarettes maker had alarmed medical experts US private equity firm Carlyle has made an improved £958m takeover offer for British inhaler maker Vectura, trumping an earlier bid from tobacco company Philip Morris International that had alarmed medical experts. Carlyle said on Friday it would offer 155p a share for …

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PE Firm WCAS Launches $300M Value-Based Care Portfolio Company, Valtruis

What You Should Know: Welsh, Carson, Anderson & Stowe (“WCAS”), a leading private equity firm focused exclusively on the healthcare and technology industries, announced that it is launching Valtruis, a unique portfolio company that will invest in and partner with value-based care driven healthcare companies. WCAS is committing an initial $300M to this platform. Founded …

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WCAS Commits $300M to New Value-Based Care Platform ‘Valtruis’

One of the most active private equity firms in the senior care space is launching a new portfolio company dedicated to value-based care. Welsh, Carson, Anderson & Stowe (WCAS) announced the formation of Valtruis on Tuesday, along with an initial capital commitment of $300 million. Spearheaded by a founding leadership team that includes managing partners …

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Drug firm that hiked prices by 6,000% paid shareholders £400m

Advanz Pharma and former private equity owners were fined £100m by markets watchdog A pharmaceuticals firm that inflated thyroid drug prices by up to 6,000% over a decade paid out more than £400m to shareholders and directors during the same period. London-based Advanz Pharma – and its former private equity owners HgCapital and Cinven – …

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As independent practices vanish, experts debate the pros & cons of a consolidated market

Independent physician practices are being gobbled up by hospitals, payers and private equity, and while some see it as a boon for the practices and industry as a whole, others believe it will raise costs and block access to care.

Report: Hospitals, insurers, PE firms own nearly half of physician practices

The Covid-19 pandemic spurred the rate of physician practice acquisition by hospitals and corporate entities, like payers and private equity firms, a new report shows. As a result, by January 2021, about 48% of physician practices across the country were owned by one or the other entity.

How Home Health Care Helped Shape the $34B Medline Megadeal

A group of private equity firms have reached an agreement to acquire a controlling stake in Medline Industries Inc., a major player in the medical-supply space that works across the continuum of care. Announced Saturday, the deal reportedly places a $34 billion enterprise value on the Northfield, Illinois-based Medline. While the megadeal likely won’t directly …

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PE Firm Warburg Pincus Makes Minority Investment in GHX, Thoma Bravo Exits

What You Should Know: – GHX, a healthcare supply chain leader announced it has entered into a definitive agreement to receive a strategic investment from private equity firm Warburg Pincus. As part of this transaction, minority investor Thoma Bravo has exited its investment. Existing investor Temasek, an investment company headquartered in Singapore, will remain the …

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PE Firm Frazier Healthcare Partners Closes $1.4B Growth Buyout Fund

What You Should Know: –  Frazier Healthcare Partners, a Seattle-based healthcare private equity firm announced the close of its tenth global buyouts fund and 13th fund across buyouts and life sciences. Investment focus will continue to be middle market provider-based businesses, with virtual health as a major component. The oversubscribed $1.4 billion fund, FHGB X, is significantly …

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PE Firm Thoma Bravo Acquires Clinical Trial Financial Platform Greenphire – Health M&A

What You Should Know: – Thoma Bravo, a private equity investment firm focused on the software and technology-enabled services sector announced that it has reached an agreement to acquire Greenphire, a financial lifecycle management software for clinical trials, from The Riverside Company. Financial details were not disclosed for the pending transaction. – The acquisition, which …

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UK pharmaceutical firm Ventura agrees to £958m takeover deal

Private equity firm Carlyle Group to buy company that is developing inhaled treatment for Covid-19 Coronavirus – latest updates See all our coronavirus coverage The British pharmaceutical company Vectura Group, which is developing a pioneering inhaled treatment for Covid-19, has agreed a £958m takeover by Carlyle Group as it looks set to become the latest …

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Hospitals caught in crossfire of battle between Rhode Island AG, PE-owned operator

Amid a heated battle over an ownership change, Prospect Medical Holdings has threatened to close two of its hospitals in Rhode Island in response to conditions the state’s attorney general proposed. The hospital chain’s private equity owner is looking to sell its majority stake but requires state approval to move forward.

Study: PE firms acquire hospitals with high operating margins, boosting them further

Hospitals acquired by PE firms tend to have higher operating margins than those that are not acquired — and that gap widens over time, a new study shows. But it is too early to say whether these glowing financial figures equate to better support for clinical care.

Q1 2021 Health IT/Digital Health PC/VE, M&A, IPOs/ SPACs Activity

The first quarter of 2021 has been one of investor optimism as the vaccine rollout continues ahead of expectations and economic activity begins to accelerate in response.  Within the Health IT industry, the already strong investment and M&A trends seen in 2020 have only accelerated.  Over the course of the quarter, we observed $7 billion in private …

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‘Better Systems, Better Controls and a Digitized Industry’: Analyzing PE’s Impact on Home-Based Care

In late March, members of Congress argued fervently that private equity did not belong in health care, with senior care being a particularly egregious case of trespassing. During a special House hearing, lawmakers addressed the dangers of PE firms digging their heels deeper into the long-term care space and how profit-driven motives can have an …

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House Hearing Slams Private Equity’s ‘Troubling’ Expansion into Health Care

Members of Congress took aim at private equity’s expanded role in the U.S. health care system on Thursday, addressing the topic during a special hearing held by the House Ways and Means Subcommittee on Oversight. Much of the hearing focused on PE’s increasingly prominent role in nursing homes, as the COVID-19 pandemic has triggered heated …

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‘We’re a Strong Alternative to Nursing Homes’: PACE Giant InnovAge Executes $350M IPO

InnovAge (Nasdaq: INNV), a Program of All-Inclusive Care for Elderly (PACE) provider, officially went public Thursday. Denver-based InnovAge offers one of the largest PACE programs in the U.S. The company has about 1,900 employees and serves 6,600 seniors in Colorado, New Mexico, California, Pennsylvania and Virginia. In addition to its PACE offerings, InnovAge owns two …

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Life Sciences Firm OrbiMed Raises $3.5B Across Private Investment Funds

What You Should Know: Life sciences investment firm OrbiMed announced $3.5 billion in commitments for its latest private investment funds, including $1.5 billion for OrbiMed Private Investments VIII, $800 million for OrbiMed Asia Partners IV, and $1.2 billion for OrbiMed Royalty & Credit Opportunities III. The three new funds include a broad range of medical …

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Tech-Enabled PBO RxBenefits Reaches $1.1B Valuation After Recapitalization

What You Should Know: – Private equity firm Advent International announced that it has completed a recapitalization of RxBenefits, the employee benefits industry’s first and only technology-enabled pharmacy benefits optimizer (PBO). – The transaction values RxBenefits at approximately $1.1 billion. Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced …

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Healthcare PE Firm Heritage Group Launches $317M Health Tech Fund

Partners David McClellan, Rock Morphis, Paul Wallace (Left to Right) What You Should Know: – Healthcare private equity firm Heritage Group launches a $300M fund to invest in high-growth healthcare services and technology companies. – Heritage is backed by some of the leading healthcare organizations in the nation, including large provider systems, payers, and healthcare …

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2020’s Top 20 Digital Health M&A Deals Totaled $50B

Teladoc Health and Livongo Merge The combination of Teladoc Health and Livongo creates a global leader in consumer-centered virtual care. The combined company is positioned to execute quantified opportunities to drive revenue synergies of $100 million by the end of the second year following the close, reaching $500 million on a run-rate basis by 2025. …

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Israeli Digital Health VC Firm OTV Closes $170M Venture Fund

What You Should Know: – OTV (formerly Olive Tree Ventures), Israel’s ‘digital health first’ venture capital firm closes $170 million venture fund to support innovative digital health companies worldwide. – OTV also announced today a new China office and the appointment of Jose Antonio Urrutia Rivas as Head of Asia Pacific. OTV (formerly Olive Tree Ventures), Israel’s ‘digital health …

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M&A: CarepathRx Acquires Pharmacy Operations of Chartwell from UPMC for $400M

What You Should Know: – CarepathRx will acquire the University of Pittsburgh Medical Center’s pharmacy operations in a $400M deal. – The company fully integrates pharmacy operations, expands healthcare services, improves ambulatory access, minimizes clinical variation and creates new health system revenue streams. – CarepathRx serves more than 15 health systems and 600 hospitals, with …

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M&A: Central Logic Acquires Patient Care Transition Platform Ensocare

What You Should Know: – Central Logic has acquired Omaha-based Ensocare, which automates the referral process for patients from hospital to post-acute care (PAC) when they are being discharged. – This acquisition means that Central Logic’s technology solution will now expand its reach across the care continuum, from acute to post-acute care—into, through and out …

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Tampa General to Launch Healthcare Innovation Venture Fund in Q1 2021

What You Should Know: – Tampa General Hospital announces its plan to launch a new healthcare innovation venture fund to improve the quality and access to care across the Tampa/St. Pete metro area in Q1 2021. – Through TGH InnoVentures, Tampa General will partner with Embarc Collective, Tampa Bay’s innovation hub and education nonprofit dedicated …

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Former KKR Vet Jim Momtazee Launches Healthcare Investment Firm, Patient Square Capital

Jim Momtazee, Managing Partner at Patient Square Capital What You Should Know: – Former KKR veteran Jim Momtazee announced the launch of Patient Square Capital, a partnership being purpose-built to become the preeminent investment firm in healthcare.  – Patient Square will partner with best-in-class management teams whose products, services, and technologies improve health.  – Prior …

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Waystar Acquires Medicare RCM Company eSolutions at $1.3B Valuation

What You Should Know: – Revenue cycle management provider Waystar acquires eSolutions, a provider of Medicare and Multi-Payer revenue cycle management, workflow automation, and data analytics tools at a $1.3B valuation. – The acquisition will create the first unified healthcare payments platform with both commercial and government payer connectivity, resulting in greater value for providers. …

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Eden Health Lands $25M to Bring On-Site and Virtual Care To Employers, Commercial Real-Estate

What You Should Know: – Eden Health raises $25M to give employers and commercial real estate owners and operators the ability to offer medical care on-site, near-site, and virtually. – Eden’s membership model makes high-quality healthcare an affordable benefit for the average employer, with low to no out-of-pocket costs for their employees. – Since the …

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Analysis: July Health IT M&A Activity; Public Company Performance

– Healthcare Growth Partners’ (HGP) summary of Health IT/digital health mergers & acquisition (M&A) activity, and public company performance during the month of July 2020. While a pandemic ravages the country, technology valuations are soaring.  The Nasdaq hit an all-time high during the month of July, sailing through the 10,000 mark to post YTD gains …

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Greenway Health Taps AWS to Develop Cloud-Based, Data Services Platform

What You Should Know: – To help meet the needs of ambulatory care practitioners in a post-COVID environment, Greenway Health, a leading health information technology, and services provider, today announced a new strategic partnership with Amazon Web Services (AWS). – Leveraging AWS cloud services, Greenway is developing a new cloud-based, data services platform, Greenway Insights, …

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A special presentation from J.P. Morgan for MedCity’s INVEST conference [Sponsored]

Pamela Aldsworth, head of VC coverage and managing director at J.P. Morgan, discusses deals and dealmaking during the pandemic and how startups can survive, in a special presentation to mark MedCity News’ annual INVEST conference.

HGP Semi-Annual Health IT Market Review: 6 Key Trends to Know

Healthcare Growth Partners, an Investment Banking and Strategic Advisory firm exclusively focused on the transformational health IT market, today announced the release of its Semi-Annual Health IT Market Review report that summarizes M&A and private equity activity across health IT, health information services, and digital health. Report Background/Methodology This edition of the report includes feedback from …

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Leading During Disruption: How Synergy HomeCare’s New CEO Took Control Amid COVID-19 Chaos

Securing stockpiles of personal protective equipment (PPE), doubling down on company-wide training efforts and implementing educational initiatives are just some of the responsibilities that home care leadership teams have taken on during the COVID-19 crisis. While most home care agencies were navigating the public health emergency over the past few months, Synergy HomeCare’s CEO had …

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