With 586 transactions in the second quarter of 2023, we want to take a moment to look at several that are interesting, whether in purchase price or size of assets.
Merck & Co. Acquires Prometheus Biosciences
On April 17, Merck & Co announced that it acquired Prometheus Biosciences for $10.8 billion. Prometheus Biosciences is a clinical-stage biotechnology company that specializes in treating immune-mediated diseases. This acquisition represents the largest purchase price of the quarter, regardless of sector.
Robert M. Davis, chairman and chief executive officer of Merck had this to say.
“The Prometheus acquisition accelerates our growing presence in immunology, augments our diverse pipeline and increases our ability to deliver patient value.”
Vytalize Health Buys Independent Physician Association of New York
Independent Physician Association of New York was acquired by Vytalize Health, a portfolio company of K. Invest S.A.L and Hudson River Capital Partners. With more than 3,000 physicians now under Vytalize Health’s umbrella, Independent Physician Association of New York is one of the biggest physician networks in the internal medicine specialty. This acquisition is part of the increased interest in internal medicine, in which there were 10 reported transactions throughout the quarter.
Optum Acquires Amedisys
On June 6, Optum announced that it acquired Amedisys, Inc., a Home Health & Hospice organization for more than $3.7 billion. Option Care Health previously bid for Amedisys in May 2023, but Optum sent an unsolicited bid soon after, ultimately winning out. Amedisys offers home health care, provisional medical staffing and primary care in rural areas and outpatient surgery services.
Patrick Conway, M.D., CEO of Optum Care Solutions said this.
“Amedisys’ commitment to quality and care innovation within the home, and the patient-first culture of its people, combined with Optum’s deep value-based care expertise can drive meaningful improvement in the health outcomes and experiences of more patients at lower costs, leading to continued growth.”
W. P. Carey Acquires Portfolio of Pharmaceutical R&D and Manufacturing Campuses
W.P. Carey announced on April 4 that it acquired four pharmaceutical R&D and manufacturing facilities for $468 million. The portfolio is in New York, New York and totals more than 2.3 million square feet. This is one of the most significant acquisitions of square footage in the LevinPro HC database and the largest purchase of square footage in Q2:23. This transaction highlights the value of prime life science space and is one of five life science acquisitions of the quarter.
Private Investment Consortium Acquires Syneos Health
On May 10, a consortium of the private equity firms, Elliott Investment Management, Patient Square Capital and Veritas Capital, acquired Syneos Health, Inc. The purchase price was $7.1 billion, marking an impressive investment in the contract research organization field. The contract research organization reported a total revenue of $5.4 billion in 2022.
Ramzi Musallam, CEO and Managing Partner of Veritas had this to say.
“Veritas looks forward to driving investment in [Syneos Health] to underscore Syneos Health’s position as a market leader and to enhance its ability to deliver medical innovations to patients across the globe.”
