3M to spin off its Health Care operation by the end of 2023. According to their release, the Health Care spinoff will be focused on patient care as a diversified healthcare technology leader in wound care, oral care, healthcare IT, and biopharma filtration. The larger part of the present 3M, called a New 3M in the release, will concentrate on global material science and technology innovation, with manufacturing, global capabilities, and “iconic brands”. Currently (FY 2021) what will be New 3M will be far larger, with $26.8 billion in sales. Health Care currently has about $8.61 billion in sales. New 3M will retain a 19.9% stake in Health Care. Somehow, 3M has engineered it to be tax-free for US federal income tax purposes. How this will affect current shareholdings is not disclosed–yet.
Despite the wet blanket of a developing recession, there are smaller health tech companies scoring decent funding rounds and buying each other.
Cleerly Health, which has developed an AI-based cardiac diagnostic tool for coronary artery disease, has scored an exceptionally healthy and oversubscribed $223 million (from $192 million) Series C. Lead investors are Fidelity Management and Research Company and T. Rowe Price, returning investors Vensana Capital, LRVHealth, New Leaf Ventures, Cigna Ventures, and DigiTx Partners, plus seven others. Cleerly uses machine learning to evaluate coronary computed tomography (CT) angiograms, allowing physicians to more easily identify, characterize and qualify atherosclerosis (plaque) buildup in the walls of the heart arteries to more accurately predict the risk of heart attack. Release, Mobihealthnews
Primary care-focused EHR Elation Health doubles current funding with a $50 million Series D. Total funding is now $108 million. In the still-crowded EHR field, Elation focuses on independent primary care practices and claims a base of 20,000 practices. In 2021, the company was invited to work with the American Academy of Family Physicians (AAFP) on technology to ease the administrative burden on physicians. The funding round was led by Generation Investment Management and Ascension Ventures, joined by Threshold Ventures, Ascend Partners, and individual investors including Fay Rotenberg and Jonathan Bush. Elation release, Mobihealthnews
Health Note closed a $17 million Series A. SignalFire led the round with participation from UnityPoint Health, Northwell Holdings (Northwell Health), and Cedars Sinai Health Ventures. Health Note is a pre-clinical visit automated intake platform that prepares clinical notes for providers ahead of patient visits. Current seed funding was about $6 million. The funding will go towards market expansion, expanded EHR integration, and further R&D. Release, Mobihealthnews, SoCalTech, MedCityNews
And to close with a specialized acquisition in the IT and data governance areas, Galen Healthcare Solutions has been acquired by RLDatix. Terms and management transitions were not disclosed. RLDatix specializes in governance, risk, compliance (GRC) and workforce management technology for healthcare organizations. Galen adds health IT expertise in data migration and archival solutions. Release This is on top of RLDatix’s acquisition of UK-based Quality Compliance Systems (QCS) in May.