7 mile advisors sectorwatch: ine · vitreoshealth 16-sep-19 the company was acquired by hms...

Q2 2020

Sectorwatch:Digital Medicine

7 Mile Advisors

Digital Medicine

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OverviewDASHBOARD

PUBLIC BASKET PERFORMANCE

VALUATION COMPARISON

RECENT DEALS

• Summary metrics on the sector

• Commentary on market momentum by comparing the

most recent 12-month performance against the last 3-

year averages.

• Summary valuation and operating metrics for a basket of

comparable public companies.

• Graphical, detailed comparison of valuation multiples for

the public basket.

• The most recently announced deals in the sector

We advise on M&A and private capital transactions and provide market

assessments and benchmarking. As a close-knit team with a long history

together and a laser focus on our target markets, we help our clients sell

their companies, raise capital, grow through acquisitions, and evaluate new

markets.

We publish our sectorwatch, a review of M&A and operational trends in

the industries we focus.

1 - year revenue growth compared to revenue growth average for last 3 years - Current revenue

growth rate is less than the average of the last 3 years, indicating that the market may be flattening

or declining

Dashboard

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Phreesia 1,041 -5 130 24.5% 65.1% -4.1% 8.0x #N/A 532 244

Livongo 9,987 -39 207 135.1% 73.8% -19.0% 48.3x #N/A 615 337

Tabula Rasa Healthcare 1,563 4 297 34.0% 36.7% 1.5% 5.3x 357.4x 1,286 231

Evolent Health 954 -280 896 30.8% 36.2% -31.3% 1.1x #N/A 3,400 264

Inovalon Holdings 3,825 182 651 12.2% 73.6% 27.9% 5.9x 21.0x 2,662 245

Hms Holdings 2,990 155 650 7.4% 34.3% 23.9% 4.6x 19.3x 3,100 210

Public Basket

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3,393 3 472 40.7% 53.3% -0.2% 12.2x 132.6x 1,933 255

2,277 0 473 27.6% 50.9% -1.3% 5.6x 21.0x 1,974 244

share price as of 13Jul20

Public Basket

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Operational Metrics

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Operational Metrics

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Operational Metrics

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Valuation

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1x 5x 5x 6x 8x 48x

LTM

RG

R%

EBIT

DA(x

)Revenue(x) LTM RGR%

1x 5x 5x 6x 8x 48x

LTM

GP%

EBIT

DA(x

)

Revenue(x) LTM GP%

Valuation

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01-Jul-20 InTouch Health Teladoc Health 600.00 - 7.06 -24-Jun-20 Citra Health Solutions Ascension Ventures - - - -17-Jun-20 Mindleap Health Newleaf Brands 2.56 - - -16-Jun-20 StapleHealth Unite US - - - -09-Jun-20 Endovantage RapidAI - - - -08-Jun-20 Zesty Induction Healthcare Group 15.43 - - -03-Jun-20 Dr. Jud Sharecare - - - -03-Jun-20 MYidealDOCTOR RelyMD - - - -02-Jun-20 EA Health Enhanced Healthcare Partners - - - -29-May-20 Evondos Verdane - - - -22-May-20 Integrated Medhealth Communication Waterland Private Equity Investments - - - -19-May-20 HintMD Revance Therapeutics 180.02 - - -13-May-20 Medappcare Dekra - - - -27-Apr-20 AbleTo Optum 470.00 - - -16-Apr-20 Gaido Biofourmis - - - -15-Apr-20 BioBeats Huma 10.00 - - -

14-Apr-20 Symplur Ardian - - - -

07-Apr-20 Lionrock Recovery Big Spruce Holdings 7.00 - - -01-Apr-20 PandaLab Malta Informatique - 22.39 - -01-Apr-20 SCI Solutions R1 RCM 190.00 - - -31-Mar-20 Carie Emerald Organic Products - - - -30-Mar-20 TeleHealth Solution New Capital Partners - - - -17-Mar-20 HealthAware Eruptr - - - -29-Feb-20 Advanced Home Care (Advanced Home Health) BrightSpring Health Services - - - -27-Feb-20 Wellpepper Caravan Health - - - -20-Feb-20 Cloudbreak Columbia Partners Private Capital 10.00 - - -10-Jan-20 Livecare Health Canada Premier Health Group 0.80 - - -08-Jan-20 Zest Health Virgin Pulse - - - -

07-Jan-20 Blue Mesa Marlin Equity Partners - - - -

Recent Transactions

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Public Basket

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Its solutions cover several areas including Allergy, Cardiology, Dermatology, Family Medicine, Neurology and Oncology among

others. The Phreesia Platform offers the following solutions to its clients: registration solutions, patient activation solutions, revenue

cycle solutions, clinical support solutions, appointment solutions, and life sciences solutions.

Phreesia

Public Basket

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Phreesia

Company Name Date Deal Synopsis

Vital Score 01-Jan-18 The company was acquired by Phreesia (NYS: PHR) for an undisclosed amount on January 1, 2018.

Public Basket

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Its additional solutions include Livongo for Hypertension, Livongo for Prediabetes and Weight Management, and Livongo for

Behavioral Health by myStrength. The company's client comprise of employers, health plans, government entities, and labor unions.

Its operations are primarily located in the United States.

Livongo

Public Basket

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Livongo


myStrength 01-Feb-19 The company was acquired by Livongo for $10 million on February 1, 2019.

Retrofit 17-Apr-18 The company was acquired by Livongo for an undisclosed amount on April 17, 2018.

Public Basket

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The cloud-based software solutions of the company help the prescribers, pharmacists, and healthcare organizations in managing the

medication-related needs of patients.

Tabula Rasa Healthcare

Public Basket

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Tabula Rasa Healthcare


PrescribeWellness 05-Mar-19

The company reached a definitive agreement to be acquired by Tabula Rasa Healthcare (NAS: TRHC) for $150 million on March 5, 2019. This

acquisition supports TRHC's goals of expanding medication risk mitigation programs in community pharmacies and providing community

pharmacists with clinical revenue opportunities beyond dispensing.

DoseMe 03-Dec-18 The company was acquired by Tabula Rasa Healthcare (NAS: TRHC) for an undisclosed amount on December 3, 2018.

Public Basket

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The company supports health systems and physician organizations in their migration toward value-based care and population health

management. The company's reportable segments are Service segment which includes value-based care services, specialty care

management services and comprehensive health plan administration services. and True Health segment consists of a commercial

health plan it operates in New Mexico that focuses on small and large businesses. It generates a majority of its revenue from the

Service segment.

Evolent Health

Public Basket

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Evolent Health


Integrated ACO 06-Aug-19 The company was acquired by Evolent Health (NYS: EVH) for an undisclosed amount on August 6, 2019.

Passport Health Plan 29-May-19 The company was acquired by Evolent Health (NYS: EVH) for $70 million on May 29, 2019.

Public Basket

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Its platform can be used to identify gaps in care, quality, data integrity, and financial performance. The primary capabilities of

Inovalon's big data platform are data integration, advanced analytics, intervention platforms, and business processing. It maintains a

registry of data compiled from several sources, including electronic health records, claims, and pharmacies. Analytics run on this data

can determine the presence of a disease, gaps in clinical outcomes, or medical compliance.

Inovalon Holdings

Public Basket

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Inovalon Holdings


ABILITY Network 02-Apr-18

The company was acquired by Inovalon Holdings (NAS: INOV) for $1.19 billion on April 2, 2018. The combination of the companies creates a

vertically integrated cloud-based platform empowering the achievement of real-time, value-based care from payers, manufacturers and

diagnostics all the way to the patient's point of care. The transaction is comprised of $1.1 billion cash and $100 million by the issuance of 7.6

million restricted common shares of Inovalon stock.

Complex Care Solutions 06-Jul-17The company was acquired by Inovalon Holdings (NAS: INOV) for approximately $4.5 million on July 6, 2017. The deal included

approximately $3 million in cash and the assumption of a similar amount of debt.

Public Basket

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The company offers services that help customers contain healthcare insurance benefit costs. Its primary offerings comprise

coordination of benefits, payment integrity, and eligibility verification. The coordination of benefits service ensures the right party

pays a health claim. The payment integrity service ensures the billing and/or payment is accurate and appropriate. The eligibility

verification service ensures individuals meet qualifying criteria for healthcare programs. The company's customers include Medicaid

agencies, government health agencies, health plans, government and private employers, and others. The company operates only

within the United States.

Hms Holdings

Public Basket

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Hms Holdings


West Claims Recovery Services 23-Dec-19

The company, a subsidiary of Intrado, was acquired by Hms Holdings (NAS: HMSY) for $158.6 million on December 23, 2019. The acquisition

will open up a new coordination of benefits market for HMS Holdings with commercial payers and extend its push into the Medicare COB

market.

VitreosHealth 16-Sep-19 The company was acquired by Hms Holdings (NAS: HMSY) for $36.6 million on September 16, 2019.

Contact Info 704.899.5962 [email protected]

704.899.5762 [email protected]


















As a close-knit team with a long history together and

a laser focus on our target markets, we help our

clients sell their companies, raise capital, grow

through acquisitions, and evaluate new markets.

Securities offered through 7M Securities LLC.

7 mile advisors sectorwatch: ine · vitreoshealth 16-sep-19 the company was acquired by hms...

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