Health-care dealmaking kept up a brisk pace in November, setting up what could be a blockbuster December and a record-breaking year, attorneys and analysts say.
The number of deals announced and closed in November reached 236, up from 223 in October and 213 in September, said Gary Herschman of Epstein, Becker & Green in Newark.
“Due to the volume of deals planning to close by year end, we expect that December activity will more than double November’s activity,” Herschman said.
Life sciences and pharmaceuticals again led all sectors with 48 deals, followed by physician services and practices (31), health-care information technology and software (30), medical devices (29), cannabis (24), behavioral health (13), and home health (10). …
Health IT in Demand
Activity in the health IT sector continued at a high level in November, as consumer demand increased for “no-touch solutions” in health care, said Anjana Patel of Epstein, Becker & Green.
“Companies know they need to innovate to meet the market’s demands and to remain competitive, and this has driven up the demand for infusions of capital from interested buyers,” she said. …
The cannabis sector saw 24 announced or closed deals in November, pushing the year-to-date total to 260 transactions, said Zachary Taylor of Epstein, Becker & Green.
The number of deals will likely increase in 2022 despite the lack of movement at the federal level towards regulatory changes, he said.
“Lenders seem to have become more comfortable with the prospects and future financial sustainability of cannabis businesses, which has translated in the availability of more financing,” he said. “And that, in turn, has increased interest from investors, leading to more deals and more consolidation as investors look to scale up to keep up with fierce competition.”