Irish medtech Medihive sees value lift as $33bn US group takes stake

IRISH medtech firm Medihive, previously known as Webdoctor, has raised €5.5m from investors including a $33bn US healthcare company in a deal which values the business at €62m.

he new funding secured this month includes €3.5m from a unit of stock market-listed US medical devices firm ResMed, which is a Medihive customer. ResMed has a market capitalisation of more than $33bn (€30bn).

Medihive CEO David Crimmins held a senior role in ResMed prior to joining the Irish firm.

ResMed’s director of strategy and business development, Martin Stavnsberg, has now been appointed a director of Medihive.

The latest deal also means that well-heeled backers of the firm, including businessman Cyril Maguire, are likely to already have seen a solid paper return on their previous investment in it.

Medihive provides software and clinical solutions to the healthcare, pharmacy, and insurance industries, as well as direct to consumers. The firm was founded in 2013 by brothers Oisin and Howard Kim alongside co-founders Martin Commins and Dr Sylvester Mooney.

Medihive declined to comment on the new investment when contacted.

However, having ResMed as an investor is likely to spur expansion plans. The San Diego group develops technology that helps patients who suffer from conditions including sleep apnea and chronic obstructive pulmonary disease such as chronic bronchitis and emphysema.

In its last financial year, ResMed generated revenues of $3.6bn and net income of $780m. The figures were up 13pc and 64pc respectively on the previous year.

Last November, ResMed completed the near €1bn acquisition of Medifox Dan, a German developer of software for a variety of out-of-hospital care providers.

Medihive’s 2021 fundraising was sourced from Irish private equity firm VentureWave Capital. Medihive said at the time that the equity raise had lifted its valuation to $56.6m. That money was earmarked for accelerating the company’s international growth and expansion and building its sales, marketing, product and technology teams.

Company filings show that VentureWave has injected an additional €750,000 into Medihive as part of the latest fundraising. Other existing investors have stumped up another €1.2m.

Existing backers of Medihive include a company owned by the family of former politician and broadcaster Ivan Yates. Mr Yates is a director of the unlimited company, but not a shareholder. The shares are held by his children. New York-based Irishman Brian McSweeney and his brother Stephen are also among the backers. They co-founded virtual recruitment business Flexhire, which sources staff for the tech industry.

The latest set of accounts for Medihive show that it had accumulated losses of €3.8m at the end of 2021 as it continued to grow.

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