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Category Archives: Life Sciences Investing

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Healthcare & Life Sciences Private Equity Deal Tracker: Adaptive Biotechnologies Secures $105 Million in Financing

Posted in Life Sciences Investing

Adaptive Biotechnologies has announced it has completed a series C financing round and completed a newly created series D round of financing with a $105 million investment from Viking Global Investors. Adaptive Biotechnologies, based in Seattle, Wash., is an immunosequencing diagnostics company with a focus in oncology. Viking Global Investors, based in Greenwich, Conn., is… Continue Reading

Clarus Ventures Seeks to Raise $375 Million for New Life Sciences VC Fund

Posted in Life Sciences Investing

Clarus Ventures has set out to raise $375 million for a new life sciences VC fund, according to multiple reports, including a San Francisco Business Times report. Clarus Ventures is a healthcare VC firm with offices in Cambridge, Mass., and South San Francisco, Calif. It presently manages $1.2 billion of assets across two funds, according… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Akebia Therapeutics Raises $41 Million in Series C Financing

Posted in Life Sciences Investing

Akebia Therapeutics has announced (pdf) it has completed a $41 million Series C financing. Akebia Therapeutics, headquartered in Cincinnati, is a biopharmaceutical company focused on the development of small molecules for the treatment of anemia and vascular disease. Satter Investment Management, a Chicago-based PE firm, led the funding round. It was joined by Novo A/S… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Radius Health Raises $43 Million in New VC Funding

Posted in Life Sciences Investing

Radius Health, Inc., has announced it has completed a new equity financing of $43 million. Radius, based in a Cambridge, Mass., is a biopharmaceutical company focused on developing new therapeutics for the treatment of osteoporosis and other women’s health conditions. The financing was led by F2 Biosciences III, L.P. F2 is a family of life… Continue Reading

Healthcare & Life Sciences Private Equity Deal Tracker: Versartis Raises $25 Million in Series C Financing Led by Aisling Capital

Posted in Life Sciences Investing

Versartis, Inc. has announced it has raised $25 million in series C financing led by Aisling Capital. Versartis, headquartered in Redwood City, Calif., is a biotechnology company developing therapeutics for patients with endocrine disorders. Aisling Capital, headquartered in New York, is a private equity fund that invests in life science companies. It is a new… Continue Reading

Agencies Have Conflicting Interpretations re Taxable Medical Devices

Posted in Life Sciences Investing

Referencing S. O’Shea, R. Ricchio’s Law360 article “Mixing Agency Rules May Mean More Taxable Medical Devices" , our McGuireWoods colleagues Melissa Gilmore and Mary DeBartolo recently queried which medical devices are taxable and noted conflicting agency interpretations. As our colleagues note, amid conflicting agency regulations, contract manufacturers of device components and finished devices may be subject… Continue Reading

McGuireWoods Attorneys Discuss US Supreme Court Healthcare Reform Decision

Posted in Healthcare Services Investing, Industry Events and Announcements, Life Sciences Investing

Just minutes and hours after the US Supreme Court issued its much-anticipated decision regarding the constitutionality of The Patient Protection and Affordable Care Act (PPACA or ACA) on June 28th,  commentators in all walks of life scrambled to offer their insights via various media outlets.  Our McGuireWoods colleagues also prepared a thoughtful analysis of the decision… Continue Reading

ACOs Working Out Initial Difficulties

Posted in Life Sciences Investing

Apparently some early participants in the accountable care organization (ACO) program are experiencing problems accessing crucial CMS (Centers for Medicare and Medicaid Services) data. The acting administrator of CMS has reported to ACO supervisors and others at a conference last week in D.C. that the agency is attempting to streamline access to Medicare enrollees’ data…. Continue Reading

U.S. Supreme Court Begins Much-Anticipated Oral Arguments re Healthcare Reform

Posted in Healthcare Services Investing, Life Sciences Investing

It is virtually impossible to turn on a TV, radio or podcast . . . or pick up a newspaper or peruse the internet . . . without hearing that the U.S. Supreme Court today began three days of potentially landmark oral arguments over the constitutionality of The Affordable Care Act (aka the "healthcare reform… Continue Reading

Orphan Disease Therapy Investments

Posted in Life Sciences Investing

Perhaps despite not having the cache of ‘guaranteed-weight-loss’, ‘quit smoking now’ or even a cure-all for cancer, pharmaceuticals for the treatment of rare diseases can be an attractive investment strategy. Amicus Therapeutics is the developer of small molecule, orally administered drug called pharmacological chaperones for the treatment of human genetic diseases. The company is currently… Continue Reading

Sony Makes Inroads into Health-Care in a Big Way

Posted in Life Sciences Investing

Put aside your Sony flat-screen TVs and Blu-Ray players and make way for —flow cytometry. Why is Sony Corporation, a proven global manufacturer in the field of audio, video game, communications, key device and information technology, venturing in the turbulent, albeit often lucrative waters of medical applications? Because they can. Less than a year ago,… Continue Reading

A Decade of Private Equity Investments

Posted in Healthcare Services Investing, Life Sciences Investing

Pitchbook has reported on a decade of private equity investments in a four-part series focusing on investments, fundraising, exits and fund returns.   The highlights are illuminating of the period from 2001 through 2010, with the unsurprising peak in 2007 and drop thereafter.    Highlights from the investments portion of the report include the following: The decade… Continue Reading

Diagnostic & Monitoring Device Companies Attractive Investment

Posted in Life Sciences Investing

Since the beginning of 2011, medical diagnostic and monitoring device companies have been performing in an established and even an exceptional manner. To date, these specialized medical device businesses have shown double-digit EPS growth and organic revenue growth in the middle-to-high-single digits. Sales from medical tool companies have risen 14%, diagnostics companies 15%; up 5%… Continue Reading

Four Things Your Lender is Watching When You Finance an Acquisition of a Healthcare Company

Posted in Life Sciences Investing

In an acquisition of a healthcare company, the buyer has a host of issues to monitor and track during due diligence, negotiation and documentation of the transaction.  The lender will be working through the same issues but will often have a slightly different focus that a buyer should understand. What is your lender concerned about?… Continue Reading

Conducting Due Diligence on Medical Device Manufacturers: Changes in the 510(k) Process

Posted in Life Sciences Investing

FDA is clearing up confusion about what types of changes to existing medical devices require new 510(k) submissions by updating its 1997 guidance document, "Deciding When to Submit a 510(k) for a Change to an Existing Device." The 2011 Version has been published with the intent of clarifying the requirements in an effort to improve… Continue Reading

McGuireWoods Announces 3rd Annual Medical Device, DME and Diagnostics Conference

Posted in Life Sciences Investing

Join us on November 2 in Deerfield, Illinois for an interactive conference designed for all stakeholders from medical device, durable medical equipment and diagnostic manufacturers and distributors.  Speakers will be joining us from Baxter, Sg2, Medtronic, Stryker and more.  Topics Covered Will Include: Structuring successful MedTech partnerships Physician payment sunshine laws Underlying changes in healthcare… Continue Reading

6th Circuit Court of Appeals Upholds Constitutionality of PPACA as Other Circuits Consider the Issue

Posted in Life Sciences Investing

  This week, the 6th Circuit Court of Appeals upheld the constitutionality of the individual mandate portion of the healthcare reform law, the ACA (also known as PPACA).  In this first decision from a Federal Court of Appeals on the matter, a Republican appointee joined a Democratic appointee Wednesday for a 2 to 1 decision… Continue Reading

The Medicaid Budget Crunch & Its Impact on Healthcare Investing: Part II

Posted in Life Sciences Investing

Healthcare providers are often the first to feel the effects of Medicaid funding shortfalls.  Economic turmoil, federal law and political pressures leave states few options but to slash the rates they pay to providers or take other actions regarding program eligibility discussed in Part I of our Medicaid Budget Crisis series.  A recent Kaiser Family… Continue Reading

Presidential Hopefuls Begin to Define Their Healthcare Positions

Posted in Life Sciences Investing

  As the Fourth Circuit Court of Appeals considers the constitutionality of the individual mandate of the Affordable Care Act (aka PPACA, or healthcare reform) and various GOP healthcare bills are deliberated, the healthcare plan spearheaded by Wisconsin Rep. Paul Ryan has  emerged as one platform for 2012 presidential hopefuls to stake out their positions on… Continue Reading

The Medicaid Budget Crunch & Its Impact on Healthcare Investing: Part I

Posted in Healthcare Services Investing, Life Sciences Investing

Government budget crises have been widely reported and have virtually dominated local and national news coverage in recent months. Funds shortages for Medicaid and other healthcare programs in many states have reached critical stages, all while Medicaid enrollment has risen. Many states have contemplated a variety of mechanisms for limiting spending on state healthcare programs while simultaneously… Continue Reading

Studies Show US Healthcare Spending Still Slowly Increasing, Reaching 17.7% of GDP

Posted in Life Sciences Investing

  Analysis by Altarum Institute’s Center for Studying Health Spending indicates that health spending in January 2011 grew by 4.4% compared to January 2011, marking the 28th consecutive month of historically low growth. This healthcare spending increase to $2.64 trillion accounted for 17.7% of GDP.   Noteably, in the prior year, separate National Health Expenditure Accounts (NHEA) data,… Continue Reading

As HIPAA Enforcement Efforts Increase, How Should Investors in Healthcare & Medical Device Companies View Risks Associated with HIPAA Compliance?

Posted in Healthcare Services Investing, Life Sciences Investing

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) includes two main components that are administered by the Office of Civil Rights (OCR):  the HIPAA Privacy Rule, which protects the privacy of individually identifiable health information (Protected Health Information, or PHI) and the HIPAA Security Rule, which sets national standards for the security of… Continue Reading