Welcome to the 2018 HealthTech Heartbeat review – Results International’s quarterly market update of the global healthtech sector covering both biopharma and healthcare IT
Review of 2018:
- M&A activity remains substantial with a number of high-profile acquisitions (six deals were disclosed at over $1bn) at revenue multiples that generally exceeded those currently seen in public markets.
- Private equity continues to invest heavily in the healthtech market (three out of the top six disclosed transactions in the year), providing plenty of liquidity to drive innovation and growth; the most notable was Elliot Management and Veritas Capital’s $5.6bn take-private of athenahealth.
- There continued to be fundraisings completed at significant scale and volume within the market, including several notable late-stage funding rounds. The private market continues to be preferred for liquidity – we have not seen a meaningful healthtech IPO since September 2016.
Review of 2018 predictions:
- As predicted, the interest in adaptive AI-driven healthcare solutions remained a key driver of value and growth in the market; most notably Benevolent AI’s $115m fundraise.
- Medopad, a UK-based patient data pooling and monitoring platform, continued its impressive growth story this year acquiring Silicon Valley health AI start-up Sherbit in Q3 to expand its reach in the US.
- Continued investment from both US corporates and private equity in innovation as companies seek alternative means of liquidity through M&A or fundraisings given challenging public markets.
- AI, machine learning and natural language processing to remain at the forefront of innovation in the healthtech market, fuelling further investment and buyer appetite in these capabilities.
- M&A activity to increase, correcting the recent downward trend, driven by healthcare digitalisation.As a result, now is an excellent time to be contemplating fundraising, exit or growth through acquisition in the space – if you are, please do get in touch.