Walgreens and Humana in Preliminary Talks to Merge
With the CVS-Aetna merger closed and big tech companies marching into healthcare, many healthcare organizations are increasingly willing to pursue merger and acquisition activities in order to weather the coming storm. CVS’s competitor, Walgreens, is reportedly in preliminary discussions with Humana to pursue strategic ventures together. The two are considering buying equity stakes in one another as well as expanding on their existing partnership that focuses on senior care.
In addition to their partnership with Humana, Walgreens has made several deals with LabCorp, Kroger, and Birchbox within the last year as an attempt to combat the CVS-Aetna behemoth by building upon its core competency of being a pharmacy. However, this strategic decision is a problem in today’s healthcare landscape as companies, such as CVS-Aetna, are moving into other verticals to supplement their existing businesses. Nevertheless, as shown by its talks with Humana, it seems that Walgreens has finally caught on and will be making pivotal changes to their business strategy next year.
Dental Care Startup Quip Raises Another $40 million
Quip has had a phenomenal growth year. Earlier this year, the dental startup raised $10 million from Silicon Valley Bank and also acquired Afora, a startup that creates an alternative to traditional dental plans. Quip also recently announced a partnership with Target and will be selling their toothbrushes and toothpaste through the national retailer.
Now, Quip has been equipped with $40mm in funding through the form of equity and debt financing. This influx of money will enable the dental startup to grow its subscriber base by expanding its product line and forming new partnerships with dental care providers. New service launches are also a possibility as Quip sets out to provide its members with a “full-service oral hygiene routine”. A potential dental care platform could emerge from its acquisition of Afora, connecting Quip members with dental providers at a more affordable rate. As one of the most successful personal care subscription services to date, Quip and its electric toothbrushes are here to stay.
DHMP Matchmaking is Happening Next Week on 12/5
Mark your calendars! The Winter 2018 Digital Health Marketplace Matchmaking sponsored by NYCEDC will be held next week on Wednesday, 12/5. We’d like to say thanks to everyone who applied to be a part of the program. We have received over 150 applications from innovators, making this one of our most successful DHMP events. Those selected will have one-on-one meetings with the buyer based on self-identified mutual interest. This half-day of curated matchmaking is a free service of the Digital Health Marketplace, an NYCEDC program focused on strengthening the NYC digital health ecosystem.
This is a closed event but be sure to follow us on Twitter @catalyst_h20 for live tweets and updates.