President Signed DPA to Build Ventilators
President Trump signed the Defense Production Act to address the shortage of medical supplies needed to combat the coronavirus pandemic in the U.S. The act allows the executive branch to force U.S. companies to produce essential products and supplies. The move was taken to ramp up production of masks, medical protective equipment and ventilators by private companies as patients flood hospitals during the pandemic.1
Pharmaceutical Production Shifts Back to US
Pharmaceutical companies that have their production in the U.S. have a more reliable output capacity than those that depend on foreign manufacturers. Branded pharmaceutical companies, such as Pfizer, Johnson & Johnson and Bayer, face lower supply chain disruption since they tend to have a lower manufacturing presence in China and have their manufacturing facilities spread in other nations. Generic drugmakers, on the other hand, are prone to supply shortages, if a slowdown occurs as a result of another global health emergency.2
FCC Fast Tracks Telemedicine Funding
The chairman of the Federal Communication Commission has been in discussions with Congress to subsidize telemedicine and distance learning technology in response to the coronavirus outbreak. The outbreak has caused the popularity of telemedicine to skyrocket. With the stay-at-home orders in place, certain restrictions on HIPAA have loosened, and doctors are using platforms such as Zoom, Facetime and Skype to conduct visits.3
Progress Toward a Functional 3D Printed Heart
3D bioprinting technology has shown a great potential to replace the use of human organs during transplants. Last year, Chicago-based startup, BIOLIFE4D, demonstrated it could print a 3D mini heart with four fully functional internal chambers. BIOLIFE4D’s product has been the most realistic and functioning bioprinted heart. BIOLIFE4D is working to create a full-sized human heart ready for human transplantation in the next several years. The need for human hearts exceeds the supply. Here in the US there are approximately 3,700 individuals on the waiting list that need a heart transplant.4 5
VA Prepares for COVID-19 Response
The Trump administration has prompted the Department of Veterans Affairs (VA) to prepare beds and medical services to treat an influx of coronavirus patients. The VA is the nation’s healthcare system of last resort, and that role has become more pronounced after the administration declared a national emergency over the pandemic. The department has 1,243 healthcare facilities, 170 medical centers, 1,063 outpatient sites.6
Automakers Start to Make Ventilators
Automakers are teaming up with healthcare manufacturers to address the shortage of medical equipment. Ford has partnered with 3M and General Electric to produce a new version of air-purifying respirators for healthcare workers while also increasing current respirator output at 3M. Fiat Chrysler Automobiles announced on March 23 that it would produce one million protective masks a week. Tesla said it could make ventilators if needed and has been in discussion with Medtronic.7
Largest Transactions Closed
- Dermira, Inc.
- Eli Lilly and Company
- Decision Resources, Inc.
- Clarivate Analytics Plc
- Stratus Video, LLC
- AMN Healthcare, Inc.
- NUCYNTA of Assertio Therapeutics, Inc.
- Collegium Pharmaceutical, Inc.
- Acurity, Inc. and Nexera, Inc
- Premier Supply Chain Improvement Inc.
- MaSTherCell Global Inc.
- Catalent Pharma Solutions, Inc.
- Karuna Therapeutics, Inc.
- Goldman Sachs & Co. LLC
- Advanced ENT Solutions, Inc.
- Smith & Nephew plc
- NovaBone Products, LLC
- Halma, plc
- Arthrosurface, Inc.
- Anika Therapeutics, Inc.
This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.
EBIT - Earnings Before Interest and Taxes