October M and A Settles into Second Place
What’s a synonym for “slowdown?” We’re as tired of writing about monthly deal volume dropping off as you probably are of reading about it. But M&A activity in October 2016 can only be summed up as slackening, declining, decelerating. Preliminary deal volume is now at the second-lowest level of the year, just 112 transactions. Only January’s deal volume was lower, at 104 transactions. We may have a few additions to October’s total as the fourth quarter grinds on, but it’s not typical to find another 15 deals. Deal value also dropped off. At $12.8 billion, it ranks as the second-lowest level of spending for the year. July 2016 still holds the honor of being the slowest month for... Read More »Medical Device Deals Pick Up in October
Only a few weeks into the fourth quarter, and five medical device deals have been announced, putting the year’s total at 95. Abbott (NYSE: ABT) and St. Jude Medical’s (NYSE: STJ) $1.12 divestiture of certain vascular closure and electrophysiology assets is among these five October deals, and the only one to disclose a price. On October 18, Terumo Corporation (OTC:TRUMF) acquired St Jude’s Angio-Seal™ and Femoseal™ vascular closure products and Abbott’s Vado® Steerable Sheath. The $1.12 billion, all-cash deal is subject to the successful completion of Abbott’s acquisition of St. Jude Medical, which was announced in April 2016. All parties involved are bound by the terms of an... Read More »Q3:16 Health Care M&A Results: Context Is Everything
Brace yourself. The third quarter results for health care mergers and acquisitions signal a hard tap on the brakes, both in deal volume and value. That’s compared with the robust second quarter, and the same quarter a year ago. Before we go any further, though, we must note that, compared with all previous third quarters stretching back to 2000, the third quarter of 2016 doesn’t look that bad. Some 369 transactions are now on the books for Q3:16, which ranks this quarter as the second-highest in deal volume for any previous third quarter. The top-ranked third quarter, coincidently, came a year ago, when Q3:15 racked up 411 transactions. So Q3:16’s deal volume slid 10% compared with the... Read More »Medical Device Sector Picks Up in Q3:16
In the first eight months of 2016, 80 transactions were announced in the Medical Device sector, making it unlikely this year’s deal volume would surpass last year’s total of 114 deals. As the third quarter wraps up, the sector’s deal volume has reached 90 deals: 31 in Q1, 27 in Q2, and 32 as of September 27th in Q3. If that deal making pace continues through Q4, at 2016’s average rate of 30 deals a quarter, we’ll see a 5% increase in deal volume since last year. September’s medical device deals include interventional device maker Boston Scientific Corporation (NYSE: BSX), which acquired EndoChoice Holdings Inc. (NYSE: GI), maker of endoscopic imaging systems, devices and infection control... Read More »Stryker’s Minimally Invasive Acquisitions
For a company that has targeted minimally invasive surgical products of late, Stryker Corporation (NYSE: SYK) has been highly visible in the acquisition arena this year. It started in February 2016. That month, the medical device giant announced three deals, totaling $2.03 billion. In April, three more acquisitions were announced, with only one disclosed price of $40.6 million. Halfway through September, the company has made two more acquisitions, for undisclosed prices. For those keeping score, that’s eight deals for approximately $4.1 billion. Stryker’s most recent deals have targeted Ivy Sports Medicine, LLC for its minimally invasive meniscal repair platform, and Restore... Read More »Schedule a demo
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