Of Phase Forward, MedVentive, and iMedX—Today’s New England Heath IT Deals Round-Up
[Updated at 5 pm ET on 7/16/09. Editor's note appended]
We came across a trio of healthcare IT deals this morning, which seems to be a bit more than usual even in New England, so we thought we’d provide a snapshot of each of the deals. This activity could be chalked up to the intense interest among investors and corporations in the expanded use of information technology among U.S. hospitals, clinics, and other stakeholders to improve the economics and efficiency of health care.
Here’s a quick look at each of the three deals involving New England healthcare IT outfits iMedX, Phase Forward (NASDAQ:PFWD), and MedVentive.
—Waltham, MA-based Phase Forward, which recently celebrated its fifth year as a public company, says it’s agreed to fork over $10 million to acquire the interactive voice and Web-response services business from Princeton, NJ-based contract research powerhouse Covance (NYSE:CVD), according to a press release. The deal includes a marketing agreement to provide Phase Forward’s clinical trials data management software to Covance’s customers.
—Waltham-based MedVentive, which provides business intelligence software for health plans, medical centers, and pharmacies, has rallied new and existing investors to complete a $7.25 million Series C round of venture capital, according to a regulatory filing. The financing was c0-led by its new investor Excel Venture Management, of Boston, and a previous backer, HLM Venture Partners, also of Boston, the company said in a press release. Prior investor Long River Ventures also contributed to the financing. Enrico Petrillo, a managing director at Excel, has joined MedVentive’s board of directors.
[The paragraph above was updated on July 16 to include additional information from a press release on MedVentive's financing. The press release was issued a day after this story was initially posted.]]
—Honestly, I don’t know much about iMedX’ fundraising deal beyond what appears in this regulatory filing. The filing says that the Sheldon, CT-based firm has raised $13.3 million in a new round of financing that involved two investors. Based on what I could glean from the firm’s website, it provides outsourced transcription services for doctors, delivered with its proprietary software and from operations in both the U.S. and India. I left a message for iMedX CEO Venkat Sharma this morning, but he did not immediately respond. Sharma is quoted on his firm’s website saying that the company could be destined for an IPO in India or the U.S.