Gary Herschman, Anjana Patel, Zachary Taylor Quoted in “Pharma, Health IT Stay Strong as Pandemic Slows Deal Volume”

Bloomberg Health Law & Business News

Gary W. Herschman, Anjana D. Patel, and Zachary Taylor, attorneys in the Health Care & Life Sciences practice, in the firm’s Newark office, were quoted in “Pharma, Health IT Stay Strong as Pandemic Slows Deal Volume,” by Sara Hansard.

Following is an excerpt:

Health-care transactions lagged in July due to headwinds from Covid-19, but year-to-date deals are well ahead of the same period last year, attorneys and analysts say.

The pandemic will likely have an impact on the market beyond the end of the year, according to Epstein Becker & Green attorneys and health industry financial/investment analysts at KPMG and FocalPoint Partners. …

Trends emerging from the public health crisis show the increasing “profile and value of companies providing technology to assist health-care providers in treating patients remotely,” Gary Herschman, a member of Epstein Becker & Green in its Newark, N.J., office, said.

Three telehealth/virtual care deals were announced or closed in July, Zachary Taylor of Epstein Becker & Green, Newark, N.J., said:

  • Teladoc Health’s acquisition of InTouch Health;
  • Healthcare Merger Corp.’s announced acquisition of SOC Telemed; and
  • Curavi Health, US Health Systems, and CarePointe’s merger to create Arkos Health.

Life Science, Health IT

Health IT and software deals were the second most numerous in July (19) and year-to-date (131), following life science and pharmaceutical deals (23 in July and 191 year to date). Life science deals benefited from the focus on new vaccines and treatments, Herschman said.

The third highest number of deals was in the medical device/supply sector, which was bolstered by the need for personal protective equipment, he said.

“We still expect strong activity in the last several months of 2020 with respect to hospitals and physician groups partnering with larger health systems and national physician services companies, including private equity platforms, all of which have substantial capital and highly professional corporate infrastructure,” Herschman said. …

Hospital Deals

Ten hospital/health system transactions were announced or closed in July, bringing the year-to-date total to 66. …

Six physician practices and services transactions were announced or closed in July, bringing the year-to-date total to 95 deals. …

Deal volume in the home care subsector didn’t rise as significantly as expected because of concerns of high Covid infection rates in institutional settings like nursing homes, Anjana Patel of Epstein Becker & Green’s Newark office, said.

However, “transaction volume is constant in this space,” Patel said, with the latest deals including Cornerstone Healthcare’s acquisition of Desert View Home Health; Southeast Louisiana HomeCare’s acquisition of five locations in South Louisiana from Egan Home Health and Hospice; and BelHealth Investment Partners’ portfolio company, Care Advantage, acquiring Amaisa Home Care.