While focusing on securing liquidity for our portfolio companies and taking measures to contain costs, we continue to seek new investments and are glad to report a new member of the Accelmed portfolio, Veranex. Veranex aims to transform MedTech innovation development. Veranex is the first global, fully integrated, MedTech CRO offering dedicated solutions to its MedTech clients across the whole spectrum of needs from concept development, R&D, engineering, pre-clinical and clinical, regulatory, reimbursement to market access.
Portfolio
Financially, we have been busy working with our portfolio companies to ensure appropriate liquidity. We have completed re-financing debt facilities across all of our private portfolio companies ranging from $15m to $250m and worked closely with the management teams to increase cost control and ensure at least a 24 month run rate.
Deal Flow
During Q2 we saw a modest uptick in deal flow as the new reality of depressed IPO and SPAC market conditions was further absorbed by companies. That said, we have not seen the capitulation in private market valuations yet and despite reviewing several interesting deals we ultimately passed over unrealistic valuation expectations. We believe our patience will be rewarded during the 2H ’22 as there is no near-term end in sight to the IPO and SPAC market challenges and we believe preserving our dry powder until market conditions are more favorable to high returns, is the prudent course of action.
Active Pipeline
With regards to Accelmed’s active pipeline, we are currently exploring several private (and public) opportunities focusing on a potential >$100M acquisition of an innovative MedTech asset. Our updated deal process and pipeline chart is shown below:
Team Update
We are very pleased to welcome Daniel Cohen and Maria Forero to Accelmed team. Dan and Maria replaced Lior and Katherine and both poses strong skills and experience:
Daniel Cohen – Dan has been working with Accelmed on various projects for over a decade and now joined our team. Dan has over 20 years of experience in medical technology, finance, investment banking, and private equity. Dan was the Israeli GM of China-based Fosun Pharma, and a principal at France-based Credit Agricole. Dan holds an MBA from ESSEC MBA, a BSc in Computer Sciences, a BA in Mathematics, and graduate studies in Biology.
Mario Forero - Maria brings over 25 years of US and international operational experience Prior to joining Accelmed she served as Managing Partner of an early VC fund focused on Digital Health, and Health Technologies. Maria spent ten years at Novartis in many senior roles and five years as Vice President of Healthcare at Morgan Stanley, London. She trained as a certified accountant with PricewaterhouseCoopers and holds an MPH from Columbia University, NYC, and a BSc in Human Genetics, from the University College London.
Closing Thoughts
In Q2 our focus was on upgrading our team and securing the financing and liquidity for our portfolio companies.
With this behind us, we are focused on deal flow and potential investments in both private and public (PIPEs) companies.
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