• California: Gilead Sciences has agreed to purchase the remaining shares of Arcellx for $7.8 billion. In 2022, Gilead and Arcellx partnered to co-develop and co-commercialize an investigational CAR T-cell cancer treatment called anitocabtagene autoleucael (anito-cel) for multiple myeloma, a type of blood cancer. By acquiring Arcellx, Gilead will gain full control of anito-cel, allowing the company to accelerate its development and commercialization while eliminating the future payments to Arcellex. Currently, FDA is reviewing Arcellx's application for anito-cell as a fourth-line treatment in patients with relapsed or refractory multiple myeloma. A decision about the drug's approval is expected by the end of the year. (Kellaher, Wall Street Journal, 2/23)
• Minnesota: Optum is launching a new AI-powered tool for VBC called Value Connect. According to the company, the platform uses AI to support payers and providers with their VBC efforts by identifying areas where programs are underperforming and providing interventions to improve outcomes. Value Connect integrates directly into organizations' current workflows to help facilitate communication between payers and providers. Currently, Optum clients using Value Connect have reported a 29% decrease in ED visits, a 28% decrease in avoidable hospital admissions, a 35% decrease in medical spending, and a 17% decrease in pharmacy costs, on average. "We're accelerating the shift to value-based care by meeting payers and providers where they are in their journey," said Beth Merle, SVP of provider enablement at Optum Insight. "The solution empowers organizations to proactively manage risk and costs while improving outcomes for the people they serve." (Minemyer, Fierce Healthcare, 2/18)
• Texas: Kinderhook Industries, a private equity firm, has agreed to acquire Enhabit Home Health and Hospice for $1.1 billion. Enhabit is one of the larger home care providers in the country, with 376 locations in 34 states. Previously, it was part of Encompass Health before becoming its own company in 2022. Once the acquisition is finalized, Enhabit will go private and continue operating under its current name. The deal is expected to close in the second quarter of the year. According to Joe Widmar, a director in the healthcare unit at West Monroe Partners, the deal suggests that interest in home healthcare is increasing again after initially declining in late 2024 due to uncertainty with Medicare and Medicaid rates. Another recent deal in the home health space was DaVita and Ares Management's purchase of home health and hospice company Elara Caring for an undisclosed sum. (Eastabrook, Modern Healthcare, 2/23)

*Advisory Board is a subsidiary of Optum. All Advisory Board research, expert perspectives, and recommendations remain independent.  

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