MARKET ANALYSIS

Healthcare M&A Weekly 2.21.23

The healthcare industry is rapidly evolving, with the lines between the healthcare technology and services sectors blurring – creating the catalyst for innovation, transformation, and continued market activity. TripleTree’s Healthcare M&A Weekly summarizes recent activity and highlights the industry transactions shaping the future of healthcare.
 

• Avantik announced that it has partnered with strategic healthcare investor Water Street Healthcare Partners to expand its products and services supporting anatomic pathology and histology laboratories with their operations. The diagnostics company also announced that it has appointed Mark Zacur as chief executive officer. Read more here.

 

• Axena Health, Inc., a newly-formed commercial-stage medical device company focused on women’s pelvic health, announced a $25M Series A investment from AXA IM Alts through its Global Healthcare Private Equity Strategy. The investment will support and expand access to the Leva Pelvic Health System, a prescription digital therapeutic (PDT) that offers easy-to-use, at-home treatment for urinary incontinence (UI) and chronic fecal incontinence (FI) in women. The Leva System is cleared by the U.S. Food and Drug Administration (FDA) to treat stress, mixed and mild-to-moderate urgency UI (including overactive bladder) in women and for first-line treatment of chronic FI in women. Read more here.

 

• Centura Health, one of its two joint operating sponsors, CommonSpirit Health, and Steward Health Care announced that they have signed an asset purchase agreement (APA) for CommonSpirit Health to acquire Steward’s Utah care sites, which include five hospitals, more than 35 medical group clinics, and a clinically integrated network of care providers. Centura Health will manage the assets. The five hospitals and their affiliated clinics included in the agreement are Davis Hospital and Medical Center in Layton, Jordan Valley Medical Center in West Jordan, Jordan Valley Medical Center-West Valley Campus, Mountain Point Medical Center in Lehi and Salt Lake Regional Medical Center in Salt Lake City. Read more here.

 

• Cerevance, a private, clinical-stage drug discovery and development company focused on developing novel therapeutics for central nervous system (CNS) diseases using the company’s proprietary Nuclear Enriched Transcript Sort sequencing (NETSseq) platform, announced an expansion of its Series B funding round with an additional close of $51M, bringing the total Series B financing to $116M. The financing will support upcoming clinical trials focused on Parkinson’s disease, Amyotrophic Lateral Sclerosis (ALS), and schizophrenia Read more here.

 

• Cosmos Health, Inc. (Nasdaq:COSM), a global healthcare group with proprietary lines of nutraceuticals and distributor of pharmaceuticals, branded generics, OTC medications and medical devices, announced that it has extended its previously issued non-binding letter of intent (LOI) to acquire ZipDoctor Inc. from American International Holdings Corp (AMIH). The parties have agreed to extend the LOI through February 24, 2023. Read more here.

 

• Elation Health, the technology company powering innovation in primary care, announced its strategic acquisition of Lightning MD, leader in cloud-based medical billing and payer connectivity. The acquisition is part of Elation's expansion as the sector's first all-in-one technology solution for primary care practices. Elation is combining its clinical-first electronic health record (EHR) and Best in KLAS, integrated virtual care platform with the modern medical billing and revenue management software to elevate both the physician and patient care experiences. The company will also continue to support practices integrated with over 20 practice management and billing solutions connected via the Elation application programming interface (API). Read more here.

 

• Elevance Health (NYSE: ELV) announced the closing of its acquisition of BioPlus, a comprehensive specialty pharmacy subsidiary of CarepathRx, a portfolio company of Nautic Partners. Read more here.

 

• Financial Strategies Acquisition Corp. (Nasdaq: FXCO), a Special Purpose Acquisition Company led by CEO Alexander V. Schinzing, announced the execution of a definitive business combination agreement with Austin Biosciences Corp, a preclinical pharmaceutical company. Read more here.

 

• Hexagon Bio, a biopharmaceutical company pioneering the discovery of medicines encoded in the global metagenome, announced that it has raised a $77.3M Series B financing and made key appointments to its leadership team. Existing investors, including The Column Group, Two Sigma Ventures, 8VC, and Nextech, participated in the Series B round, joined by additional new investors, including Canada Pension Plan Investment Board (CPP Investments). Read more here.

 

• HouseWorks LLC, a leading provider of personal care services in Massachusetts, New Hampshire, Pennsylvania, and Maine, announces that is has signed a definitive agreement to acquire the Personal Care division at Amedisys, Inc. (NASDAQ: AMED), a leading provider of home health, hospice, and high-acuity care. Read more here.

 

• Ivy Rehab Network, a national leader in outpatient musculoskeletal rehabilitation and pediatric services and New Jersey's largest physical therapy provider, has added 24 clinics through its newest partnership with Excel Physical Therapy. Read more here. Additionally, Ivy Rehab for Kids has partnered with Sora Therapy, a Minneapolis, Minnesota-based provider of pediatric physical, occupational, and speech therapy. Ivy Rehab Network is backed by Waud Capital and has more than 100 current New Jersey locations. Read more here.

 

• Laborie Medical Technologies Corp., a therapeutic medical technology company, announced that it has acquired Novonate, Inc. and its LifeBubble technology, a device that revolutionizes umbilical catheter protection and securement to improve safety for neonates in the intensive care setting. Read more here.

 

• OPEN Health, a pre-eminent global provider of scientific communications and HEOR & market access services, announced the acquisition of Acsel Health, a New York-based life science strategy and advisory firm focused on commercial strategy, pricing and market access, and commercial excellence. Read more here.

 

• Privia Health (Nasdaq: PRVA), announced its partnership with Community Medical Group (CMG) to launch Privia Quality Network of Connecticut (PQN CT) as the largest Clinically Integrated Network (CIN) in Connecticut. The CIN comprises approximately 1,100 multi-specialty providers, including more than 430 primary care providers, caring for patients in over 450 practice locations. Read more here.

 

• Prosperity Behavioral Health, a leading national provider of financial solutions for behavioral health facilities, announced that it has acquired Elevated Billing, a Utah-based revenue-cycle management company that serves behavioral health facilities. The acquisition will create new market opportunities and expand Prosperity’s service offerings. Read more here.

 

• Provention Bio, Inc. (Nasdaq: PRVB), a biopharmaceutical company dedicated to intercepting and preventing immune-mediated diseases, announced the closing of the $35M equity investment from Sanofi US under the previously announced Co-Promotion Agreement and Securities Purchase Agreement. Read more here.

 

• Select Medical announced a joint venture agreement with AtlantiCare to own and manage operations of a new inpatient rehabilitation hospital and 13 outpatient physical therapy centers throughout the southeastern region of New Jersey.  Select Medical will serve as both the majority owner and managing partner across the two post-acute care lines.  Subject to state approvals, the construction of the new state-of-the-art hospital in Galloway Township will begin this year. Read more here.

 

• Spacelabs Healthcare announced that it has acquired predictive analytics company PeraHealth. Founded in 2010, PeraHealth develops predictive enterprise software based on the Rothman Index, a score to quantify patient acuity. PeraHealth’s solutions alert clinicians to patient deterioration, helping to reduce in-hospital mortality, unplanned transfers to the ICU, and to drive more timely palliative care consults. PeraHealth’s Rothman Index is the only FDA-cleared predictive analytics solution of its kind on the market today. Read more here.

 

• United Digestive announces partnership with Gastroenterology Group of Naples (GGN) and Gulfshore Endoscopy Center based in Naples, Fla. This is the third Florida-based group to join United Digestive and represents the company's first acquisition of 2023. United Digestive has been a portfolio company of Frazier Healthcare Partners since 2018. Read more here.

 

• Vivage Senior Living and Beecan Health Colorado announced their merger, bringing together their respective resources and expertise to provide an integrated network of care. By joining forces through a common mission and shared values, the two companies will now be able to offer a joint vision of quality at their forty-two skilled nursing communities with nearly 3600 licensed beds across the state of Colorado. Read more here.

 
This is a partial list of transaction activity across the healthcare industry and is not intended to be a complete listing. Transaction information was identified from various sources and TripleTree may or may not have acted as the financial advisor for the transactions listed. All product names, logos and brands are property of their respective owners. All company, product and service names used in this communication are for identification purposes only. Use of these names, logos and brands does not imply endorsement.