December 2016 Didn’t Deliver a Year-End Boost
The final month of the fourth quarter is typically a busy one for deal makers in all industries. Last year, some health care deal makers apparently got a rest. Deal volume in December 2016 was an anemic 119 transactions, compared with 131 deals in November and 148 in December 2015. The Services sectors accounted for 55% of the deals in December, which is on the low side. Consider that, in November, Services accounted for 69% of the month’s transactions, and even 70% of the total in December 2015. Spending on those deals reached $15.4 billion, a relatively modest amount until it is compared with November’s $8.7 billion total (+78%) and December 2015’s $12.3 billion total (+26%). Suddenly,... Read More »2016 Delivered on Health Care M and A
As health care mergers and acquisitions go, 2016 lived up to the predictions that M&A activity would stay strong. Preliminary data for year-end totals shows 1,536 announced transactions across 13 healthcare sectors. The total represents a 1% increase in deal volume compared with 2015. (See chart below.) Spending on those deals was significantly lower than the previous year, at least for now. The combined total spending in 2016 now stands at $255.7 billion, down 36% compared with 2015’s $400.3 billion. Nearly $100 billion of that total now hangs in the balance, as two of 2015’s largest deals (Anthem/Cigna and Aetna/Humana) await decisions from a federal judge regarding... Read More »Medical Device Deals Stay Strong in 2016
Medical Devices is finishing the year on a high note. In fact, as of December 29, 2016, deal volume reached 113 transactions, equal to 2015’s total. Deal value topped off at $61.3 billion, a 111% increase from last year’s total of $29.1 billion. However, one deal accounted for 50% of 2016’s total, and that is Abbott’s (NYSE: ABT) $30.7 billion purchase of St. Jude Medical, Inc. (NYSE: STJ), a developer, manufacturer and distributor of cardiovascular medical devices for cardiac rhythm management. When that mega deal is subtracted, we get a dollar value of $30.6 billion, still a 5% climb since last year. A handful of acquirers made a name for themselves this year, such as Stryker Corporation... Read More »The Biggest Deals of 2016
It’s been a busy year for healthcare deal making. As of December 2, the combined total spending was $239.1 billion, going to finance 1,419 transactions. That’s 40% behind the $400 billion spent in all of 2015, but just 7% behind last year’s deal volume of 1,520 deals. Thirty-six deals of $1.0 billion or higher have been announced to date in 2016, with a current total of $184.2 billion. These deals comprise 77% of spending so far, and no doubt there will be a few more before New Year’s Eve. By comparison, 2015 ended with a combined total spending of $400.6 billion on 1,520 transactions. Fifty-two of those transactions reported spending of $1.0 billion or higher, for... Read More »Teleflex Keeps Cardio Deals Pumping
It’s been a busy year for mergers and acquisitions in the Medical Device sector. Through December 2, 108 transactions have been announced in 2016, compared with 113 in all of 2015. Target companies specializing in cardiovascular devices make up a small percentage of those deals, but tend to post large prices. So far, $32.8 billion has been committed to three of the four transactions targeting cardiovascular products. The vast majority of that amount is the result of the $30.7 billion acquisition of St. Jude Medical (NYSE: STJ) by Abbott (NYSE: ABT), announced in April. As a result of that deal, Abbott and St. Jude agreed to sell certain vascular closure and electrophysiology assets... Read More »Schedule a demo
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