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David Jasmund

E: djasmund@pcecompanies.com

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Industry Trends

Jobs, AI, and Patient Trends Unveiled

A Deloitte's survey reveals just 3% of health system executives have a positive outlook, emphasizing workforce talent challenges, M&A impact, and affordability concerns. Healthcare sees a shift with growing job opportunities for physicians but lower wage growth. Despite declining online searches for primary care, rising patient visits highlight the industry's resilience. The surge in AI adoption, projected to be a $208 billion industry by 2030, emphasizes the need for healthcare practitioners to integrate technology.1 2

UF Health Expands Services in St. Johns

University of Florida’s hospital system UF Health has completed the merger of Flagler Health+, officially rebranding it as UF Health St. Johns. The acquisition of the 335-bed facility and other sites of care, aims to bring advanced healthcare resources, research opportunities, and training programs to the growing St. Johns County region. This move aligns with the increasing trend of hospital mergers and consolidations observed across the healthcare industry, reflecting a strategic response to evolving healthcare demands.3

New Guidelines Pose Challenges for Healthcare M&A

Recent finalization of antitrust guidelines by the DOJ & FTC federal agencies may complicate the landscape for healthcare mergers and acquisitions. Despite critiques, the stricter rules, particularly targeting vertical and cross-market deals, raise uncertainties for companies involved in diverse transactions. Healthcare entities now face a more nuanced regulatory environment, prompting cautious navigation of potential challenges.4

AI Pledge: Committing to Responsible Innovation

The White House unveils a commitment from 28 healthcare organizations, including CVS Health and Geisinger, to embrace 'safe, secure, and trustworthy' AI products. The pledge involves informing patients about AI-generated content, adhering to a risk management framework, and advancing health equity. While AI presents opportunities for healthcare, concerns about accuracy, bias, and legal challenges highlight the need for responsible deployment within the sector.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Seagen Inc.
  • Pfizer Inc.
  • $44,551.20
  • NextGen Healthcare, Inc.
  • Thoma Bravo, L.P.
  • $1,981.87
  • Paragon Medical, Inc.
  • AMETEK, Inc.
  • $1,900.00
  • EQRx, Inc.
  • Revolution Medicines, Inc.
  • $1,586.63
  • POINT Biopharma Global Inc.
  • Eli Lilly and Company
  • $1,387.49
  • Intercept Pharmaceuticals, Inc.
  • Alfasigma S.p.A.
  • $1,176.04
  • Relievant Medsystems, Inc.
  • Boston Scientific Corporation
  • $850.00
  • Tabula Rasa HealthCare, Inc.
  • Exact Care Pharmacy, LLC
  • $657.91
  • Mitokinin, Inc.
  • AbbVie Inc.
  • $655.00
  • Forge Biologics Holdings, LLC
  • Ajinomoto North America Holdings, Inc.
  • $620.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Critical Nurse Staffing, LLC
  • Revelstoke Capital Partners LLC
  • n/a
  • Bio X Cell, Inc.
  • Windjammer Capital Investors LLC
  • n/a
  • Valant Medical Solutions Inc.
  • Resurgens Technology Partners
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Catalyst Biosciences, Inc.
  • Gyre Therapeutics, Inc.
  • $558.72
  • Urotronic, Inc.
  • Laborie Medical Technologies, Inc.
  • $546.00
  • Bonafide Health, LLC
  • Pharmavite LLC
  • $425.00
  • Laminar, Inc.
  • Biosense Webster, Inc.; Ethicon, Inc.
  • $400.00
  • Frequency Therapeutics, Inc.
  • Korro Bio, Inc.
  • $325.64
  • Alvarado Hospital Medical Center, Inc.
  • The University of California San Diego Health System
  • $200.00

 

Source S&P Capital IQ as of 1/18/2024 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. Wallis, S. “6 Healthcare Insights from Q4 2023 and What They Mean for You.” Aprio, 7 December, 2023.
  2. 2. Wheeler, T. “2024 Outlook for Health Care Planning for the Future of Health: Top trends for 2024.” Deloitte, 6 December, 2023.
  3. 3. Southwick, R. “Florida hospital system completes merger.” Chief Healthcare Executive, 15 September, 2023.
  4. 4. Pifer, R. “FTC, DOJ finalize merger guidelines that could impede healthcare M&A.” Healthcare Dive, 19 December, 2023.
  5. 5. Olsen, E. “CVS, Geisinger, others sign responsible AI in healthcare pledge.” Healthcare Dive, 15 December, 2023.
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