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Deal of the Week: Express Scripts Diversifies
Express Scripts (NASDAQ: ESRX) didn’t hedge its bets that online retail giant Amazon will enter the prescription drug delivery market. On October 10, the leading pharmacy benefit manager (PBM) acquired South Carolina-based eviCore healthcare from its current investors, including General Atlantic, TA Associates, and Ridgemont Equity Partners, for $3.6 billion. The deal follows rumors that Amazon is contemplating entering the prescription drug delivery market in an attempt to improve price transparency for consumers and reduce out-of-pocket costs. Last April, Express Scripts lost Anthem, Inc. (NYSE: ANTM) as a client, and with it, 18% of annual revenue. The threat of... Read More »
CRO Deals Pile Up, and So Do the Multiples
After 34 announced transactions in 2017, the news that one contract research organization (CRO) bought another CRO is downright yawn-inducing. This space is undergoing rapid consolidation, no question. Before this week, those 34 deals had a combined total of approximately $20.9 billion. Add another deal, and another $950 million, and the market just got a tad smaller. Catalent, Inc. (NYSE: CTLT) announced the 35th deal in this sector on September 19. Its target, Indiana-based Cook Pharmica LLC, is a biologics-focused contract development and manufacturing organization (CDMO) with capabilities across biologics development, clinical and commercial cell culture manufacturing,... Read More »
CROs Are Buying, Too
A few CROs, like PRA Health Sciences, are turning to eHealth acquisitions to strengthen their data technology capabilities. We already know that CROs are popular targets. But CROs can play the role of acquirer, too. Lately, a few of these companies have been busy claiming eHealth targets to advance their technological capabilities, namely data capabilities. On August 7, 2017, PRA Health Sciences, Inc. (NASDAQ: PRAH) acquired privately-held Symphony Health Solutions Corporation. The deal valued Symphony at $530 million, or 2.65x revenue. But, that value could be even larger depending on Symphony Health exceeding financial targets in 2017 and 2018 Symphony Health Solutions Corporation... Read More »
PE Firms Pay Big for Medical Transportation
KKR & Co., through its portfolio company, is the second private equity firm to pay more than $2 billion for a medical transportation company in 2017. The medical transportation market, falling under the “Other Services” category, has seen a couple of large deals in 2017, as some big name companies decide to change hands. On August 8, 2017, Envision Healthcare Corporation (NYSE: EVHC) announced it was selling its medical transportation subsidiary, American Medical Response (AMR), to Air Medical Group Holdings, Inc. (AMGH), a portfolio company of KKR & Co. (NYSE: KKR). The deal comes more than two years after KKR bought it from Bain Capital and Brockway Moran for an undisclosed... Read More »PE Buyers Targeting Dental Groups in 2017
Financial buyers in healthcare services are interested in segments with unyielding demand and little medical risk. No wonder, then, that dental groups have become a major target for these investors, and we’ve got the data to prove it. . Dental group acquisitions remain a solid investment. Since 2014, acquisitions have risen steadily. Through August 1, 2017, 19 dental deals have been announced, a 6% increase compared with 2016’s total of 18 deals. This eight-month total is alread 72% higher than 2015’s total (11), and up 138% from 2014’s total (8). Private equity firms are almost entirely responsible for the ongoing consolidation. In 2017, 53% of buyers were private equity... Read More »Schedule a demo
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