Health Care Deals Slide in April 2017
April usually doesn’t feel like February, at least, weather-wise. As far as healthcare mergers and acquisitions go, however, deal volume in April 2017 (103 deals) feels a lot like February’s deal volume (102). The chart below shows the clear winners and losers in April 2017. Deal volume was down 29% compared with the previous month (March, 145 deals), and slid 12% compared with the year before (April 2016, 141 deals). Healthcare services deal volume accounted for just 50% of April’s preliminary total. The services sectors typically account for higher percentages than the technology sectors (although that trend is reversed when it comes to dollar volume). The services side... Read More »Becton, Dickinson Leads the Medical Device Sector
The Medical Device sector isn’t seeing a flood of deals, but the dollars are adding up fast. In the first four months of 2017, dollars committed to deals in this sector have reached 60% of 2016’s total of $61.6 billion. With just 31 deals announced, deal volume stands at 27% of last year’s total of 112 transactions. Four deals have surpassed the $1 billion mark this year, and one currently accounts for 65% of this year’s $36.9 billion total. That deal, recently announced, is Becton, Dickinson and Company’s (NYSE: BDX) $24 billion purchase of C.R. Bard, Inc. (NYSE: BCR). In late April, Becton, Dickinson (BD) announced it would pay $317.00 per share for the New Jersey-based... Read More »
Cardinal Health Can’t Please Everyone
Cardinal Health, Inc. (NYSE: CAH) announced its $6.1 billion acquisition of three Medtronic businesses (NYSE:MDT) on the same day it disappointed shareholders with its 2017 guidance update. It’s been a tough April for Cardinal Health, the healthcare services and products company that operates through its Pharmaceutical and Medical segments. On April 18th, 2017, the company released a disappointing guidance update stating that its fiscal 2017 non-GAAP EPS from continuing operations will be at the bottom of its previous guidance range of $5.35 to $5.50. The company pointed to generic drug deflation as one of the leading factors. That same day, the company announced its largest deal to date,... Read More »Abbott and Alere: The Wedding Is Back On!
It seems so long ago. Back in February 2016, Abbott (NYSE: ABT) and Alere Inc. (NYSE: ALR) announced their $5.8 billion deal. Abbott’s board okay’ed paying $56 per common share of Alere, representing a 51% premium to the company’s close on January 28, 2016. Abbott also assumed $2.6 billion of debt. The combination was expected to create a premier point-of-care testing business and to strengthen Abbott’s diagnostics presence. Alere’s main business is its point-of-care diagnostics and services, which are focused on the areas of infectious disease, cardio-metabolic disease, and toxicology. Point of care testing is a $5.5 billion segment, and one... Read More »Medical Device Deals Spring Back to Life
The Medical Device sector ended the first quarter of 2017 with 22 announced deals, almost even with Q4:16’s total of 23 deals, and down 29% from the year-ago quarter. But the lull may not last into the second quarter. As of April 10, 2017, three medical device deals have been announced in Q2:17. On April 4th, Becton, Dickinson and Company (NYSE: BDX) acquired privately held Caesarea Medical Electronics (CME) for an undisclosed price. CME designs, manufactures and markets a range of infusion and syringe pumps, as well as related accessories and disposable administration sets for both home care and hospital settings. The acquisition expands BD’s infusion portfolio to include... Read More »Schedule a demo
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