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HEALTHTECH M A AND IPO ACTIVITY RESILIENT IN THE FACE OF GLOBAL ECONOMIC SLOWDOWN

Vlad Poptamas

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  • Blockchain, data storage, artificial intelligence, patient information and self-service healthcare technology attract motivated buyers

  • Private equity acquisitions on the rise as financial buyers keen to get a foot in the door

  • Medical marijuana a growing sub-sector now commercialised and marketed in US

London, UK – 13 February 2019. The latest Healthtech M&A Market Report from international technology mergers and acquisitions advisor, Hampleton Partners, revealed a final count of almost 100 deals in the healthtech sector in the second half of 2018.

Transaction volume remained steady compared to 1H2018, inching down by a mere six per cent and thus remaining in line with a remarkably stable trend since 2013. The trailing 30-month revenue multiple rose again to 2.8x EV/S, prolonging a trend visible over the last 18 months, since the increase to 2.8x in 2H2017 from a lower 2.1x EV/S in 1H2017.

In 2018, 186 healthcare companies went public, bringing aggregate gross IPO proceeds for the year to $24 billion, up from only $15 billion in 2017.

Largest healthtech transactions

The largest disclosed deals in the second half of 2018 included Veritas Capital and Evergreen Coast Capital’s joint private equity acquisition of athenahealth for $5.7 billion, at an attractive 17.3x EV/EBITDA. Athenahealth provides electronic healthcare record management SaaS for hospitals and healthcare practices in the U.S.

Second, at $1 billion, came the acquisition of M*Modal by 3M. M*Modal provides clinical documentation, transcription and EHR SaaS for the medical sector.

Dutch tech and health giant Philips remains the sector’s most consistently active acquirer, with a total of seven acquisitions over the past 30 months, including Blue Willow Systems and its tracking and alert-based systems for senior living facilities.

Jonathan Simnett, director and healthtech specialist at Hampleton Partners, said:

“The rise of lifestyle diseases, an ageing population and higher patient expectations are compelling both public and private healthcare systems to incorporate technology to improve productivity, cost-efficiency and patient satisfaction.”

Medical marijuana

M&A activity is now featuring in the medical marijuana sector, following regulatory changes in 10 U.S. states and Washington D.C.  In November, cannabis network marketing website Leafbuyer Technologies Inc acquired Greenlight Technologies, a cannabis ordering and rewards mobile application. The app includes features such as loyalty programmes and real-time customer data analytics. It enables consumers to pre-order cannabis products and collect the orders at their local store. Such acquisitions are likely to become more frequent across the US as regulations continue to evolve.

Key trends in healthtech

  • Established technology companies such as Amazon, Samsung and Cisco are looking for synergies and ways to enter the healthtech sector.

Key examples of this trend include Amazon’s acquisition of online pharmacy service PillPack for $1 billion earlier in 2018, and Samsung’s current collaboration with Stanford University and start-up Syncthink to study the use of VR in establishing concussion severity. In addition, Cisco is working with GE Healthcare and Philips to provide the network support for device connection, security and data integration in healthcare.

  • Self-service tech, such as health-monitoring software, drug-tracking apps or remote consultation interfaces, is generating interest amongst strategic and financial acquirers.

  • All eyes are on data, especially as blockchain continues to disrupt the market with new ways of storing, securing and managing medical data

  • The move to the cloud continues, with SaaS healthtech companies driving innovation for public and private health practices

Healthtech in 2019

Jonathan Simnett concluded:

“The M&A landscape in healthtech remains promising.  Big tech companies are entering the healthcare sector and healthcare professionals are keen to adopt technology that makes everything from transcribing patient notes, to diagnosis and treatment more effective and cost-efficient. New markets are

being created by millions of consumers now monitoring their own health via apps and online programmes at home and on-the-go and by medical marijuana deregulation.

“Patient-oriented self-service healthtech billing and payment management, SaaS, EHR patient data and medical records systems will remain in particularly high demand by buyers, along with emerging blockchain applications which can improve the security and traceability of patient data, pharmaceuticals and surgical equipment.”

ENDS

Media enquiries, photography or interview requests, please contact:

Jane Henry

Email: jane@marylebonemarketing.com

Mob: +44 789 666 8155

Note to Editors:

Hampleton Partners’ Healthtech Market Report 1H 2019 is compiled using data and information from the 451 Research database (www.451research.com).

About Hampleton Partners

Hampleton Partners is at the forefront of international mergers and acquisitions and corporate finance advisory for companies with technology at their core. Hampleton’s experienced deal makers have built, bought and sold over 100 fast-growing tech businesses and provide hands-on expertise and unrivalled advice to tech entrepreneurs and companies which are looking to accelerate growth and maximise value.

With offices in London, Frankfurt and San Francisco, Hampleton offers a global perspective with sector expertise in: Automotive Technology, IoT, AI, FinTech, Hi-Tech Industrials & Industry 4.0, Cybersecurity, VR/AR, HealthTech, Digital Marketing, Enterprise Software, SaaS & Cloud, eCommerce.

Follow Hampleton on LinkedIn and Twitter.

For more information visit https://www.hampletonpartners.com

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Asia

Wuhan Lays Out Construction of Guanggu Nanda Health Industrial Park

Betty Tűndik

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Wuhan Lays Out Construction of Guanggu Nanda Health Industrial Park
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Wuhan, capital city of central China’s Hubei province, has attracted ten major healthcare industry companies, including Taikang Group and China Biotech, to participate in building its Health Industrial Park.

The Health Industrial Park is being created with the goal of becoming a 100 billion yuan (about 15 billion U.S. dollars) hotspot of biomedicine, medical equipment, and healthcare by 2030, according to a local official at the ongoing First World Health Expo.

Wuhan‘s Jiangxia District, known as China Guanggu, or China’s “Optics Valley,” has formed a health-centered industrial cluster of bio-pharmaceutical, diagnostic equipment, and drug manufacturers. The planned Guanggu Health Industrial Park will cover 98.1 square kilometers.

Compared with Wuhan Guanggu Bio-City, which brings in revenue in excess of 100 billion yuan, the park will focus on the research and development of cutting-edge technologies in the fields of life and health while incubating key healthcare enterprises.

The Health Industry Park is positioned as a “production-research interaction” space which integrates R&D and manufacturing activities in harmony. The park will partner with Guanggu Bio-City to facilitate active industrial collaboration.

Jiangxia District will offer a preferential policy support package to health industry enterprises interested in the area, which will include financial services and R&D incentives.

Zhang Li, Jiangxia District mayor, said that Optics Valley Nanda Health Industrial Park would provide preferential policies and financial support to enterprises interested in the area. The value of a single-item policy fund is over 100 million yuan, or around 15 million U.S. dollars.

The Wuhan Health Industry Development Plan specifies that Guanggu Nanda Health Industry Park intends to introduce 100 enterprises over the next 10 years in building a 100 billion yuan-level center of business. 50,000 employees are projected to participate in establishing the fifth national industrial park in Wuhan, reaching an important milestone for Wuhan’s healthcare industry.

 

SOURCE: Wuhan Jiangxia District Government

 

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Animals/Pets

AniCura Presents Quality and Sustainability Report for 2018 – Commits to Reduce Antibiotic use by Half

Betty Tűndik

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AniCura, one of Europe’sleading providers of high-quality veterinary care for companion animals, presents its quality and sustainability report for 2018 and commits to reduce the company’s antibiotic use by half until 2030.

Since 2015, AniCura has issued an annual quality report covering the developments within quality and patient safety as well as antibiotic use among AniCura’s clinics. During 2018, the majority of AniCura’s clinics reduced unnecessary use of antibiotics, and at one third of the clinics antibiotic use was reduced with more than 30 percent. Now, the company accelerates its efforts to counteract the spread of resistant bacteria and commits to reduce antibiotic use by half until year 2030.

– Resistant bacteria are today one of the most serious threats against human and animal health, driven by overconsumption of antibiotics and poor hygiene standards in health care. A wiser use of antibiotics is a key undertaking for us and we aim to reduce our antibiotic use by half, says Ulrika Grönlund, Group Medical Quality Manager AniCura.

AniCura’s quality and sustainability report is the first of its kind in the veterinary industry and covers the developments within the nine focus areas of QualiCura, AniCura’s medical quality program. In 2018, AniCura engaged with its stakeholders to take a holistic perspective on sustainability and the report for 2018 covers besides quality and antibiotic use also the company’s work to develop sustainable working conditions, support pet owners in preventive health measures as well as AniCura’s environmental impact.

– I’m proud over the fact that we are recognized for our quality development agenda and the annual quality report issued every year. This year we have taken the report a step further by including key areas of sustainability as we know sustainable veterinary care is of high importance to both customers and employees. The purpose of our report is to provide transparency around our operations and share our learnings with the entire market to inspire further development, says Peter Dahlberg, CEO AniCura.

 

SOURCE: AniCura

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Health and Lifestyle

New Study: Diet Rich in Animal Protein is Associated With a Greater Risk of Death

Betty Tűndik

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A diet rich in animal protein and meat in particular is not good for the health, a new study from the University of Eastern Finland finds, providing further backing for earlier research evidence. Men who favoured animal protein over plant-based protein in their diet had a greater risk of death in a 20-year follow-up than men whose diet was more balanced in terms of their sources of protein. The findings were published in the American Journal of Clinical Nutrition.

Men whose primary sources of protein were animal-based had a 23% higher risk of death during the follow-up than men who had the most balanced ratio of animal and plant-based protein in their diet. A high intake of meat in particular seemed to associate with adverse effects: men eating a diet rich in meat, i.e. more than 200 grams per day, had a 23% greater risk of death during the follow-up than men whose intake of meat was less than 100 grams per day. The men participating in the study mainly ate red meat. Most nutrition recommendations nowadays limit the intake of red and processed meats. In Finland, for example, the recommended maximum intake is 500 grams per week.

The study also found that a high overall intake of dietary protein was associated with a greater risk of death in men who had been diagnosed with type 2 diabetes, cardiovascular disease or cancer at the onset of the study. A similar association was not found in men without these diseases. The findings highlight the need to investigate the health effects of protein intake especially in people who have a pre-existing chronic medical condition. The mean age of the men participating in the study was 53 years at the onset, and diets clearly lacking in protein were not typical among the study population.

“However, these findings should not be generalised to older people who are at a greater risk of malnutrition and whose intake of protein often remains below the recommended amount,” PhD Student Heli Virtanen from the University of Eastern Finland points out.

Earlier studies have suggested that a high intake of animal protein, and especially the consumption of processed meats such as sausages and cold cuts, is associated with an increased risk of death. However, the big picture relating to the health effects of protein and different protein sources remains unclear.

The study is based on the Kuopio Ischaemic Heart Disease Risk Factor Study (KIHD) that analysed the dietary habits of approximately 2,600 Finnish men aged between 42 and 60 at the onset of the study in 1984-1989. The researchers studied the mortality of this study population in an average follow-up of 20 years by analysing registers provided by Statistics Finland. The analyses focused on the associations of dietary protein and protein sources with mortality during the follow-up, and other lifestyle factors and dietary habits were extensively controlled for, including the fact that those eating plenty of plant-based protein followed a healthier diet.

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