Current medical news and unique business news for anyone who cares about the healthcare industry.
MoneyTree’s good and bad news. Good news: Venture capitalists invested 19 percent more in 2010 than last year — the highest since 2007, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on data from Thomson Reuters.
But the money, it seems, is going away from key medical sectors.
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.
- Overall, biotech investing increased by only 3 percent ($3.7 billion) and deals were up only 8 percent (460). In the fourth quarter investing declined 24 percent and deals were down 15 percent compared to the third quarter.
- Medical device investing for the year fell 9 percent ($2.3 billion) and deals were essentially the same (324) compared to 2009. In the fourth quarter, device investing dropped 31 percent and there were 15 percent fewer deals compared to the previous quarter.
- Life Sciences used to account for one-third of all venture dollars invested. That’s down to 28 percent.
- It was a mixed bag for key medical markets: Philadelphia and Cleveland were promising. But Minnesota and the Northwest struggled.
A couple caveats. Biotech and device are No. 2 and No. 3 in the amount of money invested (software is a runaway first). Also, health services increased dramatically this year, fueled in part by a 128 million third quarter that was larger than all of 2009 combined.
Early analysis says the slow resurrection of IPOs is funneling some later-stage life science companies away from the venture capital markets, which means the decrease in such an up year wouldn’t be so ominous. Others, though, see high growth markets like cleantech as the new favorite.
Healthcare M & A report. There was a 3 percent decrease in mergers and acquisition transactions compared to 2009 and an 11 percent decrease in money to finance those deals. Prediction: “Going forward in 2011, the big pharma companies will continue to focus on biotechnology companies for new, hard-to-copy products, and their potentially blockbuster sales.”
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.
Doctor bashing on Twitter? Some physicians are less likely to join social media because of perceived attacks via Twitter. But how widespread is it?
Home health v. hospitals. American saved $25 billion in hospital payroll in 2008 because they used home health services. “The findings suggest that the quickly growing population of senior citizens will not necessarily lead to an expanded hospital market.”
Amyvid FDA approval. The U.S. Food and Drug Administration approved Eli Lilly’s Alzheimer’s imaging drug provided the images can be consistently interpreted.
U.S. saved up to $25 billion in hospital payroll costs in 2008 due to the growth of the home health sector. And further savings are likely if home healthcare continues to grow.
