Allergan Adds Kythera to Smooth Its Profile

by | Jun 22, 2015 8:47 pm | Biotechnology, Pharmaceuticals

Allergan plc (NYSE: AGN), formerly known as Actavis plc, wasted no time in acquiring another publicly traded company. Last week, Allergan picked up Kythera Biopharmaceuticals, Inc. (NASDAQ: KYTH) for $2.1 billion, payable 80% in cash and 20% in new AGN shares issued to KYTH shareholders. Kythera’s only marketed product is Kybella™, an injectable drug that is the first and only approved, non-surgical treatment for double chin. The acquisition is expected to be breakeven in 2016 and accretive thereafter. Actavis, er, Allergan remains committed to de-levering to below 3.5x debt to Adjusted EBITDA by the end of the first quarter of 2016. Read More »

The Giant Health Insurers Are Circling

by | Jun 22, 2015 8:42 pm | Managed Care

It began in May, with Humana Inc. (NYSE: HUM) publicly declaring it was exploring a sale. That announcement ignited the smoldering rumors that have been swirling around the healthcare industry since the beginning of 2015: Expect a lot of consolidation in the Managed Care sector this year. By mid June The Wall Street Journal reported that UnitedHealth Group (NYSE: UNH) approached Aetna Inc. (NYSE: AET) with an offer, and that Anthem (NYSE: ANTM) and Cigna (NYSE: CI) were engaged in merger talks. We checked our DealSearchOnline database to see how each of the top five spent on managed care targets since 1994. Check ’em out.    Read More »

Independent Welch Allyn Sells for $2.05 Billion

by | Jun 22, 2015 8:39 pm | Medical Devices

Welch Allyn, Inc. was a quiet, family-run global medical device company, based in the Finger Lakes region of New York State. We knew the peace couldn’t last. Sure enough, last week Hill-Rom Holdings, Inc. (NYSE: HRC) agreed to pay $2.05 billion for the Skaneateles Falls-based company that makes those physical examination instruments and accessories you so look forward to seeing whenever you visit your doctor. It also makes EMR-connected vital signs and cardiac monitoring devices, with the aid of 2,600 people in 26 countries. Hill-Rom Holdings operates as a medical technology company, and its financial advisors at Goldman, Sachs & Co. expect this transaction to generate $2.6 billion in... Read More »

Joint Venture Buys Regal Lifestyle Communities

by | Jun 22, 2015 8:32 pm | Long-Term Care

Another good REIT story was made in the long-term care sector. Last week Health Care REIT, Inc. (NYSE: HCN) one of the largest diversified healthcare REITS in the country, agreed to pay $623 million for Regal Lifestyle Communities Inc. (TSX: RLC). Regal operates 23 independent living communities with more than 3,600 units—13 in Ontario, seven in Quebec, and one each in British Columbia, Saskatchewan and Newfoundland. Far-flung as that sounds, about 83% of the NOI is derived from four large metro markets.  HCN will be buying this portfolio in an existing RIDEA joint venture with Revera, Inc., with HCN owning 75% and Revera 25%. Read More »