October M and A Settles into Second Place

by | Nov 4, 2016 7:52 pm | Behavioral Health Care, Biotechnology, eHealth, Home Health & Hospice, Hospitals, Laboratories, MRI & Dialysis, Long-Term Care, Managed Care, Medical Devices, Other Services, Pharmaceuticals, Physician Medical Groups, Rehabilitation

What’s a synonym for “slowdown?” We’re as tired of writing about monthly deal volume dropping off as you probably are of reading about it. But M&A activity in October 2016 can only be summed up as slackening, declining, decelerating. Preliminary deal volume is now at the second-lowest level of the year, just 112 transactions. Only January’s deal volume was lower, at 104 transactions. We may have a few additions to October’s total as the fourth quarter grinds on, but it’s not typical to find another 15 deals. Deal value also dropped off. At $12.8 billion, it ranks as the second-lowest level of spending for the year. July 2016 still holds the honor of being the slowest month for... Read More »

Long-Term Care Sector Revs up in November

by | Nov 3, 2016 1:05 am | Long-Term Care

The Long-Term Care M&A market seemed to hit the doldrums, with 22 transactions in September and just 20 transactions in October. The sudden slowdown left us wondering if this could be the new norm after a red hot couple of years, where the sector averaged about 30 deals per month in 2015, and settled slowly down to 26 deals per month, through the end of October 2016. So the first week in November came as quite a shock. In the first two days of the month, two of the three largest transactions of the year were announced, along with a $337 million deal for 31 skilled nursing facilities. Sixteen transactions in this sector were announced in the first four days of November, 80% of October’s... Read More »

Medivir Sheds its Established Pharma Company for Clinical Stage Programs

by | Nov 2, 2016 3:57 pm | Biotechnology, Pharmaceuticals

Medivir AB (NASDAQ: MVIR), a research-based pharmaceutical company focused on oncology and infectious diseases, announced two transactions in the first days of November that constitutes a major shake-up. On November 1, 2016, Medivir  sold its pharmaceutical subsidiary, BioPhausia AB, to Karo Pharma AB (STO: KARO), a Swedish drug developer. BioPhausia develops and sells prescription medicines in the Nordic region for various therapeutic areas. The price was $101.75 million (SEK 908 million). BioPhausia has 13 established pharmaceutical drugs with strong brand names, which generated revenues of $21.1 million (SEK 189 million) from Q3:15 through Q2:16. According to Medivir CEO’s... Read More »

Physician Medical Group Sector Heats Up

by | Nov 1, 2016 3:42 pm | Physician Medical Groups, Private Equity

Ten months into the year, and only two healthcare sectors have posted gains compared with 2015 totals. On the technology side, it’s eHealth, where deal volume is up 10% through the end of October, to 139 transactions. On the services side, it’s Physician Medical Groups. Deal volume now stands at 102 transactions, a 13% increase over last year’s 90 deals. (See chart below.) The Medicare Access and CHIP Reauthorization Act (MACRA) is one factor behind the increase in physician practice acquisitions. Although the Centers for Medicare and Medicaid Services eased some rules regarding data reporting periods, timing and payment options, the law still calls for smaller practices to have digital... Read More »