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Stat of the Week: December 2017 +23%
Talk about saving the best for last. For months, deal volume has stagnated, slipped, and failed to excite. Then December happened. Six deals with prices over $1 billion were announced, and their combined value was $91.7 billion. Of course, the CVS/Aetna (NYSE: CVS/AET) deal accunted for most of that, at $77 billion. But what counts is that these deals showed the game is changing in the healthcare market, and market forces and investors are working outside the usual Medicare/Medicaid reimbursement policies. Let’s start with December’s deal volume. At 121 transactions (so far, more will undoubtedly be added), the total is up 23% compared with November’s 98 transactions, but 5% lower than the... Read More »
Q4:17 Redefined Healthcare M&A
Despite all the big deals announced in December, the fourth quarter of 2017 wasn’t one for the record books. Merger and acquisition activity was busy, but compared with the previous quarter and the same period in 2016, the pace wasn’t frenetic. Our preliminary data shows 357 transactions were announced in Q4:17, down a slight 4% compared with the third quarter of 2017, and down 8% versus the fourth quarter of 2016. Dollar volume, on the other hand, was quite high. Preliminary data (again) shows nearly $114.3 billion was spent in Q4:17, a 165% gain over Q3:17, and nearly 200% over Q4:16. That total rests largely on the back of a single deal, which you’ve probably heard... Read More »
