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Category Archives: Healthcare Services Investing

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Healthcare & Life Sciences Private Equity Deal Tracker: Tendyne Secures $25 Million in Financing

Posted in Healthcare Services Investing

Tendyne has announced (pdf) it has secured $25 million in series C financing. Tendyne Holdings, headquartered in Roseville, Minn., is a clinical stage medical device company focused on the development of minimally invasive therapies for the treatment of mitral regurgitation. The series C financing was led by VC firm Apple Tree Partners. Tendyne indicated that… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: J&J Accepts Carlyle Group’s $4 Billion Offer for Ortho Clinical Diagnostics

Posted in Healthcare Services Investing

Johnson & Johnson has announced it has accepted a $4 billion binding offer from PE firm Carlyle Group for Johnson & Johnson’s Ortho Clinical Diagnostics business. Ortho Clinical Diagnostics, headquartered in Raritan, N.J., operates in 130 countries. It provides solutions for early screening, diagnosing, monitoring and confirming diseases, focused on supporting hospitals, laboratories and blood… Continue Reading

Insight from MedPAC for Private Equity Investors

Posted in Healthcare Services Investing

McGuireWoods has a sister consulting group based in D.C. and several critical state capitals who are knowledgeable about the political climate and impending changes for our healthcare clients. Stephanie Kennan, Senior Vice President, and Brian Looser, Assistant Vice President, recently published a summary of the MedPAC March 2014 meeting, which addressed the following: Site-neutral Payments… Continue Reading

Analysis of Healthcare Spending Over Past Several Decades Reveals Noteworthy Trends

Posted in Healthcare Services Investing

An analysis by the Wall Street Journal of healthcare spend over the past several decades reveals the price of healthcare continues to increase faster than the consumer price index, with health spending primarily driven by hospital and physician services. In 2012, spending on hospital care accounted for a little more than 30% of U.S. health… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Unilife Secures $60 Million in Financing

Posted in Healthcare Services Investing

Unilife Corp. has announced it has secured $60 million in debt financing. Unilife, headquartered in York, Pa., is a developer and supplier of injectable drug delivery systems. The financing will come from an affiliate of OrbiMed, a New York City-based healthcare investment firm with approximately $10 billion in assets under management. Unilife received $40 million… Continue Reading

House Republications Expected to Propose SGR Repeal Funded by Delaying Individual Mandate

Posted in Healthcare Services Investing

Republicans in the House are expected to vote this week on legislation that would permanently repeal the sustainable growth rate (SGR) Medicare physician payment formula. To pay for the SGR fix, the legislation is expected to propose a delay or repeal of the Affordable Care Act’s individual mandate, according to multiple news reports including a… Continue Reading

Private Equity Investors Should Be Aware of Government Healthcare Fraud Enforcement Activity

Posted in Healthcare Services Investing

We have previously discussed on this blog the ever-increasing federal and state focus on healthcare fraud prevention and enforcement activities. As investors consider opportunities, especially those in more highlighted areas of sensitivity, they should be aware of the government’s focus on this area of fiscal management so that the risks can be properly weighed. A… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Cheetah Medical Completes $9 Million in Financing

Posted in Healthcare Services Investing

Cheetah Medical has announced it has raised $9 million in financing.  Cheetah Medical, based in Newton Center, Mass., is a developer of non-invasive hemodynamic monitoring, including the CHEETAH NICOM hemodynamic management system. Leading the investment round was Fletcher Spaght Ventures, a Boston-based balanced-stage venture capital firm investing in healthcare/life sciences and related information technology companies…. Continue Reading

DaVita to Pay Nearly $400 Million to Settle Anti-Kickback Investigations

Posted in Healthcare Services Investing

DaVita HealthCare Partners has announced in an earnings call with shareholders that it will settle federal anti-kickback investigations into some of the company’s relationships with nephrologists, according to a Denver Post report. Under the terms of the settlement, Denver-based DaVita said in a statement that it will pay approximately $389 million and has agreed to… Continue Reading

Deal Reached to Repeal and Replace SGR Payment Formula

Posted in Healthcare Services Investing

Congressional lawmakers have reached a bipartisan agreement that would repeal and replace the sustainable growth rate (SGR) Medicare physician payment formula, according to a Modern Healthcare report. Under the new system, physicians will receive a 0.5 percent pay increase each year for five years, according to a MedPage Today report, and SGR will be replaced… Continue Reading

Congress Continues Work Toward SGR Fix

Posted in Healthcare Services Investing

Every year since 2002, Congress has postponed the Medicare physician payment cuts that would be triggered by the sustainable growth rate (SGR) formula. But there is optimism that 2014 may finally be the year when the SGR is repealed and replaced by a more reasonable formula to determine Medicare payments to physicians. The most recent… Continue Reading

Top Syndicate Partners of 2013′s Most Active Healthcare VCs

Posted in Healthcare Services Investing

By Geoff Cockrell, Steven Keeler and Clare Lewis Earlier in the year, CB Insights reported that the syndicate patterns of the most active tech VC investors revealed a host of co-investor relationships, overlapping investing strategies and/or geographic focus areas. In this article, CB Insights examines the top investment syndicate partners of 2013′s most active healthcare… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Quest Diagnostics to Acquire Solstas Lab Partners for $570 Million

Posted in Healthcare Services Investing

Quest Diagnostics has announced it has entered into a definitive agreement to acquire Solstas Lab Partners Group and its subsidiaries for approximately $570 million. Solstas, a commercial laboratory company based in Greensboro, N.C., is a portfolio company of Welsh, Carson, Anderson and Stowe. WCAS is a New York-based PE firm specializing in information/business services and… Continue Reading

AHA Study: Hospitals Losing Substantial Money on Medicare and Medicaid

Posted in Healthcare Services Investing

It’s no secret that while some U.S. hospitals are thriving, others are struggling under the weight of decreasing reimbursement, rising expenses and pressures relative to integrated care. One source of pressure that hits hospitals particularly dependent on Medicare/Medicaid reimbursement was highlighted in a recent AHA study (pdf). According to data from the AHA’s Annual Survey… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Carlyle Group Acquires J&J’s Ortho Clinical Diagnostics for $4.15 Billion

Posted in Healthcare Services Investing

PE firm Carlyle Group has announced it has agreed to acquire Johnson & Johnson’s Ortho Clinical Diagnostics business for $4.15 billion. The transaction is expected to close in the middle of 2014. Ortho Clinical Diagnostics, headquartered in Raritan, N.J., operates in 130 countries. It provides solutions for early screening, diagnosing, monitoring and confirming diseases, focused… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Ivantis Completes $46.5 Million in Financing

Posted in Healthcare Services Investing

Ivantis, Inc. has announced it has raised $46.5 million in series B financing. Ivantis designs, develops and commercializes technologies to treat glaucoma. It is the developer of the Hydrus microstent device designed to lower eye pressure for glaucoma patients. Ivantis secured $14 million from Vertex Ventures and GBS Ventures in the final close of the… Continue Reading

A Primer for Ambulatory Surgery Center Investors and Lenders

Posted in Healthcare Services Investing

In our most recent Law360 column, we tackled a series of basic investment premises and common misconceptions about investing in the ambulatory surgery center (ASC) industry.  This month’s column was co-authored with our McGuireWoods partner Bart Walker and is available here.  The ASC industry remains a fairly stable area for private equity and finance investment opportunities… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Metabolon Secures $15 Million in Financing

Posted in Healthcare Services Investing

Metabolon, Inc. has announced it has raised $15 million in a series E financing. Metabolon, headquartered in Research Triangle Park, N.C., provides metabolomics-based diagnostic tests and research services. New investor Camden Partners, a Baltimore-based PE firm, led the round, with participation from Sumitomo Corp. along with existing investors Aurora Funds, Harris & Harris Group, Syngenta… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Mederi Therapeutics Secures $18.5 Million in Funding

Posted in Healthcare Services Investing

Mederi Therapeutics Inc. has announced it has secured $18.5 million in funding comprised of Series B preferred stock and venture debt. Mederi Therapeutics, based in Greenwich, Conn., manufactures and markets medical devices that deliver radiofrequency energy to treat disease. Participants in the funding round included venture capital firm Acadia Woods Partners, LLC, and Respiratory Diagnostics… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: ViewRay Secures $30 Million in Funding

Posted in Healthcare Services Investing

ViewRay Inc. has announced it has secured $30 million in funding. ViewRay, based in Cleveland, Ohio, is a privately held medical device company developing advanced radiation therapy technology for the treatment of cancer. The funding came from existing equity investors Aisling Capital, Fidelity Biosciences, Kearny Venture Partners and OrbiMed Advisors and new investor Cowealth Medical… Continue Reading