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Progyny actively looking at women's health deals

Illustration of a pregnancy test with a dollar sign appearing on the screen.

Illustration: Gabriella Turrisi/Axios

Fertility benefits management company Progyny is actively vetting prospective fertility and women's health acquisitions, CEO Pete Anevski tells Axios.

Why it matters: While plenty of emerging women's health technology companies are seeking capital, the VC community has taken a step back from the sector of late — leaving room for strategics to scoop.

What they're saying: "We have long been profitable and we have a strong balance sheet," Anevski says.

  • "We are actively exploring M&A opportunities that make sense for our clients and investors," he says, adding that no deal is imminent.
  • "And just in areas immediately adjacent to the fertility and family building industry, but across women’s health categories."

By the numbers: Progyny, which reported Q1 2023 earnings earlier this month, is on track to book more than $1.5 billion in revenue this year.

  • With a market capitalization of $3.5 billion, the company has cash and cash equivalents of about $200 million and no debt.

Context: According to the latest World Health Organization study, 1 in 6 people are impacted by infertility.

  • The success rate for single embryo transfers is 91% for Progyny members, compared with the national average of 72.5%, per data from management.
  • The success rate for live births is 54.3% for Progyny members, compared with the national average of 42.7%.

Zoom in: "We estimate that PGNY has captured roughly 380 of 8,000-plus employers and 5.4 million of 80 million-plus lives in the potential TAM," says David Larsen, equity research analyst, BTIG.

  • "This means that the in-sell and growth potential of PGNY is high, and with a strong labor market, employers seem to be demanding more fertility services," he says.

Zoom out: Women's health technology startups offering family planning services like abortion, contraception and fertility care saw an influx of funding in 2021 and 2022.

  • The Dobbs decision which overturned Roe v. Wade and triggered abortion bans in over a dozen states nearly a year ago, also buoyed interest

Yes, but: That initial swell of excitement has waned as investors navigate the aftershock of a banking crisis, per PitchBook.

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