The number of initial public offerings by healthcare companies accounted for about 11 of the 22 IPOS in the second quarter. Still, venture-backed merger and acquisition activity has been sluggish in this sector for the quarter. But in its quarterly earnings call with analysts, Safeguard Scientifics CEO Stephen Zarrilli expressed guarded optimism about having some exits of its own to share by the end of the year.
It’s been a couple of years since Safeguard (NYSE: SFE) had some exits. In 2011 it had five, including Portico — a health IT company for health provider networks that it sold to McKesson (NYSE:MCK) in a $90 million cash deal. The company has investments in technology, healthcare IT, medical device and med tech businesses.
It was the first conference call since Zarrilli restructured the deal team. He shared what he hoped to gain from the changes, including the addition of Albert Wiegman as a venture partner and senior member of the team. Wiegman had previously worked at HLM Venture Partners in Boston. It has set a target to close four to eight deals across a 12-month period.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
“We wanted to operate in a leaner way,” said Zarrili. “Going forward we’ll have the opportunity to move quicker and more consistently.” He added that the staff changes were not slowing deployment of capital.
Although the company said that it’s having conversations about a potential M&A deal for PixelOptics, a company that’s developed electronically focusing eyeglasses, there are other companies that could present exit opportunities. Safeguard has a 25 percent stake in the Virginia business, with $36.9 million in capital deployed in the business since April 2011. NuPathe is a specialty pharmaceutical company with an FDA approved transdermal patch to treat migraine headaches that’s expected to hit the market in the fourth quarter. Safeguard owns 17 percent in NuPathe outstanding common shares and it’s deployed more than $23 million in the business since 2006.
[Photo from Flickr user Maxime Guilbot]
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
