Foley & Lardner LLP partner David Sanders is quoted in the Modern Healthcare article, “Are digital health partnerships replacing M&A?” offering insight as to why many digital health companies are turning to partnerships and joint ventures as merger and acquisition activity in the industry remains slow.
Sanders said he expects the number of partnerships among digital health companies to climb. He explained that many emerging technology companies, which tend to be more focused on singular problems, are looking to pair their products with others and offer a more comprehensive offering. Sanders also noted that capital constraints among startups often lead younger companies to turn to joint ventures or partnerships more frequently because they are more economical than M&A.
“There’s a pendulum and there’s always room for both,” Sanders added. “The pendulum has shifted towards joint ventures and strategic alliances in the past few years.”
