Healthcare transactions advisors ‘in limbo’ over possible IPO
Business Insider’s Alex Gennaro reports on the uncertainty around healthcare transactions advisors and the potential for a takeover.
The market for healthcare transaction advisers has fallen from $2.5 billion in 2016 to just over $1 billion in 2020, according to FactSet, an online database of investment data.
That decline was driven by an aggressive effort to build a $3 billion business and a growing number of clients seeking to access the market through online platforms.
The trend accelerated this year as a new set of products from a number of healthcare companies became available, including healthcare transaction advisor Q-Trac.
Q-Tracs, which is based in Singapore, is a leading provider of financial advice for healthcare companies.
The company said in a statement on Monday that it was “in limbo” as it waited for regulatory approval to launch its new products.
The stock fell more than 20% on Monday to just under $2 per share.
However, there are other concerns with Q-tracs.
Q-TRAC has been under scrutiny from U.S. regulators and the Securities and Exchange Commission for a number, including the fact that it has not disclosed to clients who may be at risk of a financial loss if it is acquired by a health care company.QTRAC’s sales volume was $1.4 billion last year, but the company has been struggling to attract new clients.
In the first quarter, the company saw a decline of almost 30% in its revenue.
The number of people it has reached is currently around 15% lower than in 2016.
Qtrac has been a target for the SEC, which has also been looking into the company.
The SEC said in March that it is “reviewing a number” of regulatory issues surrounding the company and has opened an investigation into its operations.QT Inc., the parent of Qtrac, has said that it will not file a lawsuit against the SEC.