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Morning Read: Flatiron’s $175 million fund-raise a precursor to IPO in 2 to 3 years

Also, Anthem opens innovation studio at Georgia Tech and the FDA tries to shut down a Dallas drug compounder with a history of safety violations.

Zach Weinberg--Flatiron--Courtesy--150TOP STORIES

For Flatiron Health, the $175 million is all about getting where it needs to go – and in this case that means meeting “certain financial metrics” that will drive it to an IPO in two to three years.

For Roche, it’s all about the data.

“Flatiron has tremendous data that helps us understand how medicine reacts in patients,” said Daniel O’Day, the chief operating officer at Roche. “This is a long-term strategic investment, and the strategic collaboration benefits us. The value in the investment is not to generate a financial return.”

New York Times, Business Insider, Business Wire

LIFE SCIENCES

KaloBios Pharmaceuticals reportedly was just days away from buying a drug to treat a rare tropical disease when CEO Martin Shkreli was arrested on fraud charges. Critics wondered if Shkreli might take advantage of fast-tracked FDA approval for orphan drugs to jack up the price. — New York Business Journal

BiO2 Medical has raised $9 million that will help fund a clinical trial (a year ahead of schedule) for its catheter designed to trap blood clots before they reach the lungs. – MassDevice

The FDA has sued to shut down a Dallas drug compounder with a history of safety violations. — STAT

It’s still not clear whether cancer screening actually saves lives. — Reuters

An Ebola treatment that uses plasma taken from survivors probably is ineffective, but a malaria drug might actually work against Ebola. — STAT

New research suggests birth-control pills taken around the time of pregnancy don’t raise the risk of birth defects. — The New York Times

Benvenue Medical has closed a $60 million funding round to develop treatments for degenerative disc disease and vertebral compression fractures. — MassDevice

Agilent Technologies will pay Enzo Biochem $9 million to settle claims of patent infringement. — Business Wire

Lab supplier VWR, based in Radnor, Pennsylvania, has acquired Therapak, maker of convenience kits and procedure packs for clinical trials. — PR Newswire

PAYERS-PROVIDERS

Just 2 percent of patients at the nation’s largest hospitals are using hospital-provided mobile health apps. The lack of a strategy to engage patients by app is costing each facility as much as $100 million annually, according to a new Accenture report. — Business Wire

Summit Partners has invested $250 million in DuPage Medical Group in the Chicago suburbs. — PE Hub

Nashville (Tennessee) Pharmacy Services, a pharmacy specializing in HIV/AIDS treatments, has settled Medicare and TennCare/Medicaid overbilling allegations for $7.8 million. — Nashville Post

Health insurer Anthem has opened an “innovation studio” on the campus of Georgia Tech in Atlanta. — Atlanta Business Chronicle

Chipotle Mexican Grill has been subpoenaed in a federal criminal investigation over the norovirus outbreak in California last year. — Reuters

TECHNOLOGY

The CEO of a startup wonders why so much venture capital is flowing into digital health. — HIStalk

Home8, of Fremont, California, has introduced an automatic home medication dispenser that is aimed at postoperative patients and those with dementia. — PR Newswire

At CES, Jacksonville, Florida-based Seal Shield introduced what it called the first UV sanitizing device that can kill 99.95 percent of pathogens on smartphones and tablets in 30 seconds. — PR Newswire

POLITICS

As expected, the GOP-controlled House voted to repeal key provisions of the Affordable Care Act and defund Planned Parenthood, but President Obama is sure to veto. — The Wall Street Journal

The American Legion is concerned that the new White House actions on guns might discourage veterans from getting care for mental health. — Business Wire

The 2016 federal budget allocates $233 million to the VA to upgrade its VistA EHR. — Healthcare IT News

A LITTLE BIT EXTRA

There’s a petition going around Change.org to name a newly discovered element after recently deceased Motörhead frontman Lemmy Kilmister. The element, of course, is a heavy metal. — Music Feeds

Photo: Flickr user Araceli Arroyo

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