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David Jasmund

E: djasmund@pcecompanies.com

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Industry Trends

Frazier Healthcare Acquires BioMatrix

Frazier Healthcare Partners has acquired BioMatrix Holdings, LLC, a leading Florida provider of home-based infusion services. BioMatrix serves patients across all 50 states with over 2,500 physician-referral relationships. Under the leadership of Ted and Kathee Kramm, BioMatrix plans to expand through new locations and acquisitions, to increase managed care penetration, and add new therapies to their service offering, capitalizing on the healthcare industry's trend towards consolidation.1

Tech Opportunities in Healthcare

Technological advancements and market shifts in healthcare present significant opportunities, especially in biotech and mental healthcare. Private equity interest is surging in cancer treatments and remote patient technology while mental healthcare evolves with AI and telehealth solutions. Regulatory changes are impacting M&A activities, but sectors like biotech and digital health remain strong prospects for strategic acquisitions. Technological innovation is a key driver of M&A activity in healthcare.2

Trends in Telehealth: Integrating Physicians Into Virtual Care

Physicians are increasingly drawn to telehealth due to its flexibility and the reduced stress it offers. The COVID-19 pandemic significantly accelerated the adoption of telehealth, with visits increasing from 0.3% in 2019 to over 30% at the pandemic’s peak, now stabilizing around 17%. Specialties like psychiatry and dermatology have proven to be well-suited for virtual care. Additionally, innovative staffing models, such as shared resources and in-house telehealth pools, are emerging to enhance virtual care integration.3

Alcanza Clinical Research Acquires Innovation Medical Research Center

Alcanza Clinical Research, based in Lake Mary, Florida, has acquired Innovation Medical Research Center. This acquisition enhances Alcanza's clinical trial capabilities and broadens access to diverse patient populations. It is the company's ninth acquisition since 2021 and represents a key part of its growth strategy. This move reflects the growing trend of consolidation in the clinical research industry, aimed at meeting the rising demand for efficient and comprehensive research solutions.4

Ascension Healthcare Restores EHR After Ransomware Attack

In early May, Ascension Healthcare, which operates 140 hospitals across 19 states, was hit by a ransomware attack, disrupting pharmacies and emergency services. Patients experienced delays, with some needing to pay in cash or use regional pharmacies. Ascension’s electronic health record and patient portal data were damaged because of this attack. This attack highlights an opportunity for firms to acquire in-house cybersecurity solutions, enhancing their ability to protect patient data and ensure operational continuity.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Shockwave Medical, Inc.
  • Johnson & Johnson
  • $13.948.28
  • Alpine Immune Sciences, Inc.
  • Vertex Pharmaceuticals Incorporated
  • $4.955.56
  • ILC Dover LP
  • Ingersoll Rand Inc.
  • $2,400.00
  • Deciphera Pharmaceuticals, Inc.
  • Ono Pharmaceutical Co., Ltd.
  • $2,220.07
  • Inhibrx, Inc.
  • Genmab A/S
  • $1,945.55
  • ProfoundBio, Inc.
  • Roche Holding AG
  • $1,800.00
  • 4 Medical facilities in California
  • UCI Medical Center
  • $975.00
  • Proteologix, Inc.
  • Johnson & Johnson
  • $850.00
  • Hu-Friedy Mfg. Co., LLC
  • Peak Rock Capital LLC
  • $800.00
  • Escient Pharmaceuticals, Inc.
  • Incyte Corporation
  • $750.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Zimmer Biomet Spine, Inc.
  • H.I.G. Capital, LLC
  • $375.00
  • Fortrea Patient Access Inc.
  • Arsenal Capital Partners
  • $345.00
  • Sofie Biosciences, Inc.
  • Trilantic Capital Management L.P.
  • $142.90
  • NGM Biopharmaceuticals, Inc.
  • The Column Group, LLC
  • $96.45
  • 160-unit assisted living facility in Wickliffe, Ohio
  • Phorcys Capital Partners, LLC
  • $13.00

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Epygenix Therapeutics, Inc.
  • Zynerba Pharmaceuticals, Inc.
  • $680.00
  • BenefitWallet's Health Savings Accounts
  • HealthEquity, Inc.
  • $425.00
  • Agiliti, Inc.
  • THL Agiliti LLC
  • $409.48
  • Five Medical facilities in California and New Jersey
  • Prime Healthcare Services, Inc.
  • $350.00
  • Fortrea Patient Access Inc. & Endpoint Clinical, Inc. 
  • Arsenal Capital Partners
  • $345.00

 

Source S&P Capital IQ as of 7/9/2024 and PCE Proprietary Data

PCE Transactions

Contacts

David Jasmund

Orlando Office

407-621-2111 |

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Jon Gogolak

Orlando Office

407-621-2136 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Eckert F. “Frazier Healthcare Partners Announces Acquisition of BioMatrix.” Business Wire, 25 June, 2024.
  2. 2. Ketchum D. “Healthcare M&A: Market Trends & Opportunities to Know for 2024.” Caplinked, 14 March, 2024.
  3. 3. CHG Healthcare Services “Trends in telehealth: Integrating physicians into virtual care.” Healthcare Dive, 13 May, 2024.
  4. 4. Hagens K. “Alcanza Clinical Research Acquires Innovation Medical Research Center.” PR Newswire, 9 April, 2024.
  5. 5. Healthcare Dive “The state-by-state impact of Ascension’s cyberattack.” Healthcare Dive, 14 June, 2024.
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