Mallinckrodt Divests to Pursue Specialty Pharma Niche

by | Jan 31, 2017 7:20 pm | Pharmaceuticals

The latest watchword for the pharmaceutical industry is “specialization,” as in “specialization is a safer bet than diversification.” A lot of big-name pharma companies are divesting their non-core businesses in order to target specific therapeutics and disease areas. The most recent example is Mallinckrodt plc (NYSE:MNK), which has sold off approximately $893 million of its assets in the past six months, in order to focus on its specialty pharmaceutical platforms in autoimmune and rare diseases. In August 2016, Mallinckrodt sold its nuclear imaging business for $690 million to IBA Molecular, a global manufacturer and distributor of... Read More »

JNJ Bolsters Its Pipeline with Actelion Acquisition

by | Jan 27, 2017 8:53 pm | Biotechnology, Pharmaceuticals

It took a while, but Johnson & Johnson (NYSE: JNJ) finally bagged Swiss-based Actelion Ltd. (SIX: ATLN), Europe’s biggest biotech company. The company had been in play since August 2016, when J&J began negotiations, but eventually bowed out after offering $260 per share, or $28 billion. Sanofi S.A. (NYSE: SNY) moved in and by mid-December, Bloomberg reported, the two parties were discussing a price of $275 per share, valuing Actelion at $29.6 billion. For both suitors, a deal with Actelion would boost their aging pipelines. Actelion, which was formed in 1997 as a spin-out from Roche (SIX: RO), had developed a strong portfolio of drugs for pulmonary arterial hypertension, a... Read More »

Francisco Partners Exits CoverMyMeds for $1.1 Billion

by | Jan 27, 2017 6:22 pm | eHealth, Other Services, Private Equity

Francisco Partners and McKesson Corp. (NYSE: MCK) are swapping companies again. Back in October 2013, the technology-focused private equity firm acquired McKesson Automation, which offers integrated pharmacy automation products for hospitals and health systems, thus streamlining the delivery of medications. Financial terms were not disclosed. In January 2017, McKesson acquired CoverMyMeds, LLC from Francisco Partners for $1.1 billion, and another $300 million if the company met future financial targets. To make things even cozier, McKesson and CoverMyMeds have partnered together to work with pharmacies since 2010. CoverMyMeds provides electronic prior authorization... Read More »

Q4:16 Healthcare Deals Continue Downward Drift

by | Jan 27, 2017 4:37 pm | Healthcare Market Updates

Deal volume has trended downward in 2016, after spiking in the second quarter with a total of 421 deals. The third quarter logged 375 deals, and the fourth quarter’s total slipped 2%, to 366 transactions. These are not major shifts, and every quarter since Q1:14 has reported totals of greater than 350 transactions. We may be witnessing the beginning of a real downward trend, if enough investors are spooked by the Trump administration and Congress’s efforts to repeal and replace the Affordable Care Act. No replacement plan has been approved as of this writing a week after the inauguration of Donald Trump, although some senators have put forward their own plans to be debated. Healthcare... Read More »