Quotient Clinical Builds a U.S. CRO Presence

by | Feb 15, 2017 9:46 pm | CRO, Other Services

The clinical research (CRO) market in the United States has attracted the interest of foreign investors looking to build up their platforms overseas. Quotient Clinical, a privately-held CRO based in Edinburgh, Scotland, acquired two U.S.-based CROs in February 2017, in an effort to bring its innovative Translational Pharmaceutics ® platform to America. But this CRO had to change a few hands over the past few years before it could reach acquirer status. In December 2013, the U.K.-based Quotient Bioresearch Group sold Quotient Clinical to London-based Bridgepoint Development Capital, marking Bridgepoint’s entry into a growing CRO market. Just two years later, in December 2015,... Read More »

CRO Deals Are Hot and About to Get Hotter

by | Feb 9, 2017 9:49 pm | CRO, Other Services, Private Equity

The need for outsourced research and development services has caused a huge increase in the number of deals for contract research organizations (CROs) and contract manufacturing organizations (CMOs).  In 2016, 36 acquisitions of CROs and CMOs were announced in 2016, a 157% increase from 2015’s total of 14 deals, according to data reported in the Health Care Services Acquisition Report, 2017. That pace is picking up. In the first six weeks of 2017, six CRO/CMO deals have been announced,with even more to come. Last week, Reuters reported that Laboratory Corp. of America Holdings (NYSE: LH) is in talks to buy Pharmaceutical Product Development LLC (PPD), a portfolio company of Hellman &... Read More »

Francisco Partners Exits CoverMyMeds for $1.1 Billion

by | Jan 27, 2017 6:22 pm | eHealth, Other Services, Private Equity

Francisco Partners and McKesson Corp. (NYSE: MCK) are swapping companies again. Back in October 2013, the technology-focused private equity firm acquired McKesson Automation, which offers integrated pharmacy automation products for hospitals and health systems, thus streamlining the delivery of medications. Financial terms were not disclosed. In January 2017, McKesson acquired CoverMyMeds, LLC from Francisco Partners for $1.1 billion, and another $300 million if the company met future financial targets. To make things even cozier, McKesson and CoverMyMeds have partnered together to work with pharmacies since 2010. CoverMyMeds provides electronic prior authorization... Read More »

Urgent Care Centers May Benefit from ACA Repeal

by | Jan 20, 2017 7:38 pm | Other Services, Urgent Care Centers

Last week, the Urgent Care Association of America (UCAOA) released its annual Benchmarking Report. In it was the finding that the number of urgent care centers increased 10% in 2016, to 7,357 centers. Looking through our database, it’s obvious that the majority of that year-over-year growth in urgent care centers was de novo, not from mergers and acquisitions. Here’s how M&A in the urgent care segment has played out since 2010, the year the Affordable Care Act was signed. Urgent Care Center Deals, 2010 to 2016 YearNumber of DealsTotal $ Spent 201612N/A 201517$1.06 billion 20149$2.2 million 20132N/A 201210$7.8 million 20114N/A 20102$805 million #rowspan#Source: HealthCareMandA.com Only... Read More »

Outpatient Surgery Centers Take the Spotlight

by | Jan 10, 2017 5:52 pm | Other Services, Physician Medical Groups

After a record-setting year in 2016, the Physician Medical Group sector got off to a swift start in  2017, with a deal that is telling of changing healthcare paradigms, especially the shift from inpatient to outpatient care. Only two weeks into the new year, and seven transactions have been announced for physician practices and management companies. Envision Healthcare Corp. (NYSE: EVHC), the entity that officially combined Envision Healthcare Holdings and AmSurg Corp. (NASDAQ: AMSG) on December 1, 2016, announced three practice acquisitions in the first week alone. Privately held Dermatology Associates, Family Care Partners and Platinum Dermatology Partners announced one... Read More »

2016 Delivered on Health Care M and A

by | Jan 6, 2017 8:20 pm | Behavioral Health Care, Biotechnology, eHealth, Home Health & Hospice, Hospitals, Laboratories, MRI & Dialysis, Long-Term Care, Managed Care, Medical Devices, Other Services, Pharmaceuticals, Physician Medical Groups, Rehabilitation

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 »