Abbott’s $30.7B Deal Boosts Medical Device M&A

by | Apr 28, 2016 8:46 pm | Laboratories, MRI & Dialysis, Medical Devices, Pharmaceuticals

Medical device deals are back in fashion. In the first four months of 2016, 41 deals were announced in this sector, compared with just 30 for the comparable time period in 2015. Spending on deals in this sector has already hit $42.7 billion, compared with $5.7 billion in the first four months of 2015. The largest by far this year is Abbott’s (NYSE: ABT) announcement on April 28 that it would spend $30.7 billion to acquire Minneapolis-based St. Jude Medical, Inc. (NYSE: SJM). St. Jude shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share, and a transaction equity value of $25 billion. Add in... Read More »

Labs, MRI & Dialysis Deals, 2006 to 2015

by | Apr 19, 2016 8:13 pm | Laboratories, MRI & Dialysis

Deal volume rebounded sharply in the Laboratories, MRI & Dialysis sector in 2015, up 57% compared with 2014. Laboratories have had to adapt as hospitals and health systems have merged or closed in recent years. Some labs have evolved to offer coordinated diagnostics: offering tests that give on-the-spot diagnoses, handling bills and lab data from several sources and providers as an aid to accountable care organizations, and focusing on the patient experience to ensure repeat business. Read More »

Leap Day Boosts February Deal Volume

by | Mar 4, 2016 9:27 pm | Behavioral Health Care, Biotechnology, eHealth, Hospitals, Laboratories, MRI & Dialysis, Long-Term Care, Managed Care, Medical Devices, Other Services, Pharmaceuticals, Physician Medical Groups, Rehabilitation

It’s Leap Year, which means February was a day longer in 2016. This year, that extra day marked the announcement of seven healthcare transactions, which raised the month’s total to a healthy 113 deals. The services sectors were more active than usual, and accounted for 65% of the total. Usually, the services side makes up about 55% to 60%. Dollar volume was healthy, too, at $27.7 billion. But given the records set in 2015, February’s dollar total ended up 35% below the same month a year ago. The deals may be getting smaller, but they’re still being made. Read More »

Biggest Health Care Deals in January 2016

by | Feb 4, 2016 8:00 am | Behavioral Health Care, Laboratories, MRI & Dialysis, Pharmaceuticals

The pace of health care mergers and acquisitions slowed considerably in January 2016. In part, that’s due to the rush to get business off the books by the end of the calendar year, which is why fourth quarters are usually so busy. This year we’ve counted about 95 transactions announced in January, which is 32% lower than December 2015’s total, and 29% below January 2014. Thanks to Shire plc’s (NASDAQ: SHPG) $32 billion deal for Baxalta Inc. (NYSE: BXLT), spending in the month handily beat those previous months. But who would’ve thought a behavioral health care deal would rank as the month’s second largest deal? Check out the chart below. We’ll have... Read More »

Point-of-Care Diagnostics Company Commands $5.8 Billion

by | Feb 2, 2016 8:00 am | Laboratories, MRI & Dialysis

Abbott Laboratories (NYSE: ABT) may be known for its branded generic pharmaceuticals, but it just boosted its diagnostics division with the $5.8 billion acquisition of Alere Inc. (NYSE: ALR). Alere provides point-of care diagnostics and services for the infectious disease, cardiometabolic disease, and toxicology in the United States and worldwide. Abbott will pay $56 per common share, representing a 51% premium to Alere’s closing price on Friday, January 28, 2016. Abbott will also assume or refinance Alere’s $2.6 billion debt. Back in July 2015, Alere paid $60 million for US Diagnostics. It made a larger, $270 million deal for eScreen, Inc. in March 2012. The combination of... Read More »

2015 Health Care M&A Beats All Records

by | Jan 28, 2016 2:55 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

It’s déjà vu all over again. 2014 was a record-breaker for health care M&A, with 1,317 transactions and spending at an astronomical $387 billion. Then 2015 came and went and, once again, we’re writing about a record-breaking number of transactions, 1,460 currently, and astronomical spending of $563 billion. Read More »