As the COVID-19 pandemic has pushed much of life — including healthcare — in a digital, virtual direction, companies that provide telehealth services have prospered, raking in major investments in initial public offerings (IPOs). Telehealth provider Amwell raised $742 million in September 2020, after bumping up both the number of shares it planned to sell and its price because of strong demand, while GoodRx, which helps consumers find deals on prescription drug prices and has a telehealth operation, raised $1.1 billion with a stock price well above what was initially anticipated. The following month, telehealth giant Teladoc Health completed its $18.5 billion merger with Livongo, a digital health company that helps patients monitor chronic conditions.
Already this year, the healthcare sector has seen almost $30 billion in merger activity, with more than half coming from Teladoc and Livongo. The activity already exceeds the previous five years, according to Brian O’Rourke, senior analyst at S&P Global Market Intelligence. Read More: ManagedCare Executive