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The Healthcare Investor

Insights on Issues & Trends that Impact Investments in Healthcare & Life Science Businesses

Healthcare & Life Sciences Private Equity Deal Tracker: Daktari Diagnostics Secures $15.5 Million in Financing

Posted in Healthcare Services Investing

Daktari Diagnostics has announced it has closed a $15.5 million series D round of funding.

Daktari, headquartered in Cambridge, Mass., is a developer of portable diagnostic products.

The funding round was led by new investors Eastern Capital Limited and the Merck Global Health Innovation Fund. Existing investors Norwich Ventures and Partners Innovation Fund also participated.

Daktari’s CEO indicated the company’s near-term goal is to create a menu of tests for major infectious diseases that can run on the Daktari CD4 diagnostic platform in 15-30 minutes.

Behavioral Health And Other Rumblings From JPMorgan 2015

Posted in Healthcare Services Investing

Below is a link to view the latest entry from the monthly Law360 that we publish relating to healthcare private equity investments. This column was written by Geoff C. Cockrell, Amber McGraw Walsh and Richard S. Grant, McGuireWoods LLP.

We recently returned from our annual trip to San Francisco in conjunction with the JPMorgan Healthcare Conference. We and several thousand of our colleagues gathered for jam-packed days of meetings and, of course, a few after-meeting receptions, which have become de rigueur for the conference. After conversations with numerous health care private equity funds, lenders, investment bankers and companies, we can report on a number of recurring themes in the world of health care investment.

View the Law360 column “Behavioral Health And Other Rumblings From JPMorgan 2015.”

What King v. Burwell Could Mean for Insurers

Posted in Healthcare Services Investing

Most investors have likely heard about the King v. Burwell case, which addresses whether language in the Affordable Care Act allows the government to provide healthcare insurance subsidies to people across the country or only in those states with their own insurance marketplaces.

It will be argued before the U.S. Supreme Court on March 4.

In future posts we will describe more fully what the resolution of the case means for investors, but in the meantime, an interesting post from The Commonwealth Fund Blog provides insight as to what the case could mean for insurers.

View the post here.

4 Questions Providers Should Consider When Preparing or Responding to an Investigation

Posted in Healthcare Services Investing

BDO Consulting has published an interesting infographic we think healthcare investors may be interested in.

The infographic focuses on “navigating e-discovery in the healthcare datasphere.” It provides four questions providers (as well as legal counsel) should consider when preparing for or responding to an investigation.

The questions are as follows:

  1. Is your e-discovery process HIPAA-compliant?
  2. How digital is your data?
  3. Do you have a handle on your unstructured data?
  4. Will your structured data maintain its form in collection and review?

To view the infographic and read about why each of these questions is important, click here.

Healthcare & Life Sciences Private Equity Deal Tracker: Invuity Secures $20 Million in Financing

Posted in Healthcare Services Investing

Invuity has announced it has raised $20 million in equity.

Invuity, headquartered in San Francisco, is a surgical photonics company that develops devices to provide visualization of the surgical cavity. Clinical applications include breast and thyroid oncology, plastics, spine, orthopedic, cardiothoracic and general surgery.

The financing round was led by Wellington Management Co.

Invuity indicated that proceeds from the round would be used to accelerate company growth and further commercial initiatives across its product line of visualization devices.

One Week Until the 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference

Posted in Industry Events and Announcements

The McGuireWoods & McGladrey 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference will be held February 17-18 at The Ritz in Chicago.

Registration spots are still available. If readers are interested in attending, please contact Amber Walsh at awalsh@mcguirewoods.com for a registration discount.

This healthcare-focused private equity, lending and finance conference explores ways to successfully close transactions and achieve growth. CNN senior analyst and best-selling author Jeffrey Toobin will be the keynote speaker. The conference will include presentations by companies seeking investment or financing. In the past few years, this conference has attracted more than 500 attendees, the bulk of which are private equity sponsors, healthcare and life sciences operators, lenders and some vendors.

Additional cosponsorships are provided this year by Marwood and Duff & Phelps.

Learn more about the conference by clicking here. View the full agenda here, and register here.

CNN’s Jeffrey Toobin to Serve as Keynote Speaker at 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference

Posted in Industry Events and Announcements

CNN senior analyst and best-selling author Jeffrey Toobin will be the keynote speaker at 12th Annual Healthcare and Life Sciences Private Equity and Finance Conference.

This two-day healthcare-focused private equity, lending and finance conference, which will be held February 17-18 at The Ritz in Chicago, explores ways to successfully close transactions and achieve growth. The conference will include presentations by companies seeking investment or financing.

Toobin, who is also a staff writer for The New Yorker, is one of the country’s most esteemed experts on politics, media and the law. With unparalleled journalistic skill, Toobin has provided analysis on some of the most provocative and important events of our time.

Learn more about the conference by clicking here. View the full agenda here, and register here.

If readers are interested in attending, please contact Amber Walsh at awalsh@mcguirewoods.com for a registration discount.

Concierge Medicine Market Offers Investment Opportunities

Posted in Healthcare Services Investing

Below is a link to view the latest entry from the monthly Law360 that we publish relating to healthcare private equity investments. This column was written by Geoff C. Cockrell, Amber McGraw Walsh and William T. Nash, McGuireWoods LLP.

Concierge medicine, also known as “boutique” or “retainer” medicine, has grown from a regional industry catering to a select, wealthy population of patients to a national industry that provides a viable alternative to many patients with more modest incomes. As implementation of the Affordable Care Act moves forward, primary care physicians will be asked to serve even larger patient populations. As a result, the concierge medicine industry is primed for further growth as patients seek better access to physicians. As a young and growing field, concierge medicine may ultimately provide a solid market for private equity investors.

View the Law360 column “Concierge Medicine Market Offers Investment Opportunities.”

Study: Top 5 Healthcare Investment Priorities for U.S. States

Posted in Healthcare Services Investing

An analysis by Accenture of the State Health Innovation Plans developed by 25 states found the top five projected investment areas of the states currently participating in the program.

Information like this can give investors valuable insights into areas of growth for purposes of considering different investment targets.

In total, CMS has invested $960 million in the State Innovation Models initiative, which provides financial and technical support to states for the development and testing of state-led, multi-payer healthcare payment and service delivery models intended to improve health system performance, increase quality of care and decrease costs for Medicare, Medicaid and Children’s Health Insurance Program beneficiaries and for residents of participating states. Nine states are in pre-testing and testing phases and 16 have completed model designs.

Accenture’s analysis (pdf) found the top projected investment areas are:

  • Patient-centered medical homes
  • Lower-cost labor models
  • Telehealth
  • Self-service tools
  • All-payer claims databases

“These initiatives taking hold across the country are part of the shift from an essentially outdated healthcare system to the evolution of family and community-centered care models and a real convergence of health and human services,” said Kaveh Safavi MD, global managing director of Accenture’s health practice, in a news release.

Investors Should Note U.S. Medical Research Funding Slows

Posted in Healthcare Services Investing

Investments by the federal government in medical research has declined in recent years, according to the results of a new study published in the Journal of the American Medical Association.

U.S. funding had increased 6% per year from 1994-2004, but the rate of growth declined to 0.8% per year from 2004-2012.

Industry (private) financing increased from 46% in 1994 to 58% in 2012. According to the JAMA researchers, “Industry reduced early-stage research, favoring medical devices, bioengineered drugs, and late-stage clinical trials, particularly for cancer and rare diseases.”

While the JAMA analysis of publicly available data determined research financed by biomedical, medical device and pharmaceutical companies slowed from 2004-2012, financing from the National Institutes of Health declined significantly during the same time period, notes a Modern Healthcare report on the findings.

NIH financing had a -1.8% compounded annual growth rate from 2004-2012, down sharply from a 7.3% CAGR from 1994-2004.

The study also showed the United States demonstrated the slowest annual growth in investment (1.5% per year) from 2004-2011 among regions included in the analysis. Asia was first at 9.4% per year (with notably large increases in China, India, South Korea and Singapore) followed by Canada at 4.5% and Europe at 4.1%.

The JAMA researchers conclude, “New investment is required if the clinical value of past scientific discoveries and opportunities to improve care are to be fully realized. Sources could include repatriation of foreign capital, new innovation bonds, administrative savings, patent pools, and public-private risk sharing collaborations. Given international trends, the United States will relinquish its historical international lead in the next decade unless such measures are undertaken.”