2017’s Next Healthcare Trend: Go-Private Deals
Every year has its trends. In 2017, we’ve reported on mass consolidation of CROs and Physician Medical Groups, and a dip in pharmaceutical M&A, to name a few. Another trend we’ve observed is the large amount of going-private transactions in healthcare. In the first six months of 2017, 44 going-private transactions were announced, a 38% increase from 2016 and a 91% increase from 2015. In 2017, 45% of the 44 going-private transactions were initiated by financial buyers, and an additional 21% were announced by private equity-sponsored companies making add-on acquisitions. In 2016, 26% of these deals were initiated by financial buyers, and another 19% were PE-sponsored add-on... Read More »Pamplona Capital Wins Auction for PAREXEL
Pamplona Capital Management LLP, a New York-based private equity firm, has been on the hunt for a contract research organization (CRO) for the past year. According to a report from Reuters, it made an unsuccessful bid earlier this year for Pharmaceutical Product Development LLC, a U.S. clinical trials firm valued at more than $9 billion. On June 20, 2017, Pamplona bagged a different target. The firm announced its acquisition of PAREXEL International Corporation (NASDAQ: PRXL) in a going-private transaction. According to other reports, Parexel’s advisers initially accepted PE firm offers, but later opened up the auction to industry players as well. Pamplona outbid rivals including... Read More »
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 »PE Firms Team Up to Buy CROs
The contract research organization (CRO) industry continues to consolidate at a rapid pace in response to growing demand from pharmaceutical and biotechnology companies. But pharma and biotech serve as the customers in this industry, not the acquirers. Nearly all the buyers in 2017 are other CRO companies that are seeking scale. Private equity is also joining the party, accounting for the remaining portion of deals, including the largest disclosed deal this year. Last month, INC Research Holdings (NASDAQ: INCR) paid $4.6 billion for inVentiv Health, a CRO that also counts Advent International and Thomas H. Lee Partners as equal equity holders. The firms will retain their stakes following... Read More »Patheon Bought, Again
There has been a lot of interest in contract research organizations (CROs), contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs), especially in the M&A market. Half-way through May 2017, 19 of these deals have been announced. With 14 deals and $14 billion spent this year, CROs have taken the spotlight. But CDMO deals are picking up pace, accounting for 21% of the 19 deals and $7.3 billion spent this year. Most of that total derives from one deal. On May 15, 2017, Thermo Fisher Scientific, Inc. (NYSE: TMO) acquired Patheon N.V. (NYSE: PTHN), a CDMO focused on active pharmaceutical ingredients (APIs) and finished drug product... Read More »Schedule a demo
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