Healthcare startups are driving a takeover boom

Hi,

Morning, and welcome to Insider Healthcare. I'm Allison DeAngelis, and today in healthcare news:

• A top analyst explains what's driving a banner year of healthcare consolidation.
• Digital therapeutics firm Pear is going public in a $1.6 billion SPAC deal.
• WHO's top scientist isn't sold on booster shots, yet.

If you're new to this newsletter, sign up here. If you've got biotech/pharmaceutical industry tips, email me at adeangelis@insider.com or tweet @ADeAngelis_bio. Now, let's dive into the news....

Healthcare startups are driving a takeover boom. A top digital health analyst explains what's driving it.

• Many digital health companies started by solving singular pain points within healthcare, Megan Hernbroth reports.
• Now that the market has matured, users are looking for companies that offer more comprehensive software.
• Just as consolidation led to "mega-biotechs," a few companies stand to win big in digital health.

Get more insight here >>

Pear Therapeutics is going public in a $1.6 billion SPAC deal. Its projected revenue reveals just how hard it is to make money with a doctor-prescribed app.

• Pear Therapeutics, which makes apps to treat substance abuse and insomnia, is going public through a SPAC deal.
• Companies like Pear are experiencing slow commercial launches due to a lack of insurance reimbursement.
• The company is hoping to boost revenue from $4 million this year to $125 million in 2023.

Read more here >>

Drugmakers are pushing forward with COVID-19 booster shots, but the WHO's top scientist doesn't know if it's a good idea

• The WHO's top scientist said it's too early to recommend COVID-19 vaccine booster shots.
• Soumya Swaminathan said we don't yet have enough data, Dr. Catherine Schuster-Bruce reports.
• Vaccine manufacturers are developing extra doses that could boost the immune response in fully-vaccinated people.

Hear more from Swaminathan here >>

More stories we're reading today:

• Tens of thousands of COVID-19 survivors in India are developing deadly 'black fungus' infections that can lead to blindness (Insider)
• National Institutes of Health Director Dr. Anthony Fauci is defending himself from criticism that he 'misled' Americans in the early days of the pandemic (Axios/New York Times)
• BIO's chief on the FDA commissioner rumors, drug pricing, and IP rights (STAT News)
• 'We'll all be dead by June': Jared Kushner lashed out at a health official after hearing about mask shipments, according to a new book (Insider)
• The future of US healthcare may be playing out in Nevada (WSJ)

- Allison