Welcome to the Q2 2018 edition of the HealthTech Heartbeat – Results International’s quarterly market update of the HealthTech segment covering both Biopharma and Healthcare IT.
Highlights in the quarter include:
- An 11.8% increase in the Results International HealthTech indices over the last three month, led by Biopharma IT and US Healthcare IT, demonstrating the premium on innovative technology:
- 4 US HealthTech stocks exceeded 40% increases in share price quarter-to-quarter, including Teladoc and Tabula Rasa who have both experienced consistent share price growth since IPO and currently trade at 7.4x and 10.5x revenue respectively
- High-profile Private Equity funds investing heavily and proving to be more than a match for their trade counterparts, most notably Veritas Capital Fund Management acquired the Value-Based Care Division of GE Healthcare for $1.1bn in cash
- Medidata Solutions acquiring SHYFT Analytics, a US-based life science data analytics firm, for $195m, following their commercial partnership in 2016. The acquisition strengthens Medidata’s ability to analyse clinical, real-world and commercial data, and post market announcement Medidata secured a 6% uplift in its share price
- The HealthTech fundraising and IPO market remains active; UK-based Benevolent AI, achieved a further investment of $115m to continue developing its core “AI brain”, in a move that strengthens the company’s opportunity to disrupt the pharma industry and there are continued rumours of a return to the public market for Change Healthcare, which was taken private by Blackstone in 2011 for $3bn