Midwest healthcare companies attracted $1.5 billion in new equity investments in 2015, according to the BioEnterprise Midwest Healthcare Growth Capital Report. The total amount raised is second only to 2014, and a record number of Midwest healthcare companies received funding.
Minnesota ($423 million), Ohio ($331 million), and Illinois ($217 million) led Midwestern states in attracting investment dollars. Minneapolis ($418 million), Chicago ($217 million) and Cleveland ($201 million) were the leaders in the Midwest regions.
“This was the fourth consecutive year that Cleveland has seen more than $200 million in biomedical investment activity,” said Aram Nerpouni, president and CEO of BioEnterprise. “In the last four years alone, Northeast Ohio biomedical companies have raised more than $1 billion.”
Across the Midwest, 2015 growth capital funding was allocated as follows:
• Medical Device companies: $737 million (48%)
• Healthcare IT and Software and Services companies: $450 million (29%)
• Biotech and Pharmaceutical companies: $352 million (23%)
Health Intelligence Company, a health IT/software services company in Chicago reported the largest fundraise, nearly $43 million. Missouri and Ohio companies also saw deals of $40 million or greater: Veran Medical Technologies, a medical device company in St. Louis and CloudBreak Health, a health IT/software services company in Columbus.
“As far as the regional landscape, the numbers continue to tell the story that Cleveland is a great place for biomedical companies to grow and thrive,” said Nerpouni. “The biggest success, however, is not captured in this report, as Cleveland saw record acquisition activity valued at more than $4 billion.”
The two biggest Northeast Ohio acquisitions during 2015 were the Steris acquisition of British company Synergy Health for $1.9 billion and the Rite Aid/Walgreens acquisition of EnvisionRx valued at approximately $2 billion. In addition, medical device company CardioInsight was acquired by Medtronic, and health IT company, Explorys was acquired by IBM, giving both Medtronic and IBM a foothold in Northeast Ohio.
For state and region results across the Midwest, see the tables below. To view additional data about Midwest healthcare business activity visit http://www.bioenterprise.com/reports.
