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Scoop: Amulet Capital preps Open Health sale

Mar 24, 2022
Doctor carrying a computer patient chart.

Illustration: Rebecca Zisser/Axios

Amulet Capital is gearing up for a potential $1 billion sale of medical affairs company Open Health, sources tell Axios.

Why it matters: After fielding inbound interest for the Chicago-based company last year, Amulet is readying a sale of the company via Houlihan Lokey, sources say. A formal process including private equity and strategic buyers is expected to launch in May.

  • Open Health, which has more than 1,000 employees across its 15 offices in 6 countries, provides HEOR (health economics outcomes research) and market access, medical communications and omnichannel strategies to the pharmaceutical industry.
  • Its estimated 2022 EBITDA is approximately $50 million, and consistent with recent trades in the sector, is expected to command close to a 20x EBITDA multiple, sources say.

Flashback: In December 2018, Amulet bought Open Health and merged it with existing portfolio company Peloton Advantage.

  • In November 2019, the platform merged with HEOR shop Pharmerit International.

State of play: The increasing complexity and volume of sophisticated therapeutic drugs is fueling demand for the likes of Open Health that offer scientific and complex messaging around commercialization.

  • The market remains so large and fragmented that assets, despite the recent surge in investment activity, are barely competing against each other.
  • With the needs of drugmakers constantly evolving, private equity firms are flocking to the various outsourcing companies offering differentiated consulting, market access, marketing, education and commercialization services to the life science industry.

Catch up quick: A number of large funds have entered the medical communications sector over the last 12 months, with assets commanding EBITDA multiples in the 17x to 22x range. Based on Sarah’s previous reporting, that includes:

Meanwhile, Houlihan is advising another smaller medical communications business, RevHealth, on a potential sale, sources say.

  • The company, with around $20 million of EBITDA, just kicked off a process that includes both sponsors and strategics, sources say.
  • RevHealth, based in Morristown, New Jersey, is a HCP (healthcare professional) marketing and medical education platform.

Amulet and Houlihan declined to comment. Open Health and RevHealth could not immediately be reached.

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