Investors Want Health Care Services with No Strings Attached
Preliminary data for the month of May shows an encouraging uptick in deal volume, with the services sectors making up 66% of the total. Some 134 transactions were announced last month, a 30% increase over April’s anemic 103 deal volume total. But monthly transaction totals in 2017 are not keeping pace with those in 2016. A year ago, 151 transactions were announced, 11% higher than in May 2017. There’s no question that the ongoing uncertainty surrounding the American Health Care Act hangs heavily on healthcare investors. The Senate Republicans have been at work behind closed doors to craft a different deal than the one sent to them by the House Republicans in mid-May. From the handful of... Read More »Aziyo Biologics Buys CorMatrix Assets
Aziyo Biologics, Inc. is finally gaining some traction. The company was formed in November 2015 by HighCape Partners, a growth equity fund focused on commercial-stage life sciences companies. Deerfield Management Co. joined HighCape in providing capital for the transaction. Aziyo develops customized tissue products for use in orthopedic, spinal, sports medicine, and dermal applications. On May 31, 2017, the company announced the completion of an asset purchase agreement with CorMatrix® Cardiovascular, Inc. for the purchase of all CorMatrix commercial assets and related intellectual property. CorMatrix develops biomaterial devices that harness the body’s own innate... Read More »Medical Device Deals Stagnated in Q1:17
Deal volume in the Medical Device sector stagnated in early 2017, dropping 4% to 22 transactions in the first quarter. Deal volume was also down 29%, compared with Q1:16. This quarter accounted for 21% of the 104 deals announced in the previous 12 months. The excise tax that was introduced through the Affordable Care Act in January 2013 was suspended temporarily in December 2015. Now, medical device makers are hoping the tax will be rescinded completely with whatever bill Republicans pass to replace the ACA. The permanent repeal would brighten the outlook for startups and venture capitalists, and could lead to more innovation (and M&A) in the future. Source: HealthCareMandA.com, April... Read More »Spending on Health Care Deals Popped in April
April deal volume disappointed, with 103 deals and a decrease of 29% compared with March 2017 (145 deals). On the spending side, April’s preliminary spending total increased 931% compared with the previous month’s $4.8 billion. Here’s the breakdown. April’s combined spending hit $49.9 billion, which was 15% higher than the total in April 2016. This month’s high was the result of a single large deal, the $24 billion spent by Becton, Dickinson and Company (NYSE: BDX) for C.R. Bard (NYSE: CBR), in the Medical Device sector. Also worth noting is the more than $9.0 billion spent by Hellman & Friedman to buy out the majority stake owned partner, The Carlyle Group (NYSE:... Read More »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 »Schedule a demo
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