More Medical Device Deals in May

More Medical Device Deals in May

The market is still busy for healthcare technology sectors, including medical device companies. So far, 29 deals have been announced in 2020 in the Medical Device sector, compared with 32 a year ago, according to our Deal Search Online database. Yes, that’s a slight drop, year over year, but nothing compared with some of the services sectors. Through mid-May, five deals targeting medical device companies are on the books. The latest announcement was from Smiths Medical, the U.S. subsidiary of Smiths Group plc (OTC: SMGKF). The parent company is a British diversified engineering business with operation in more than 50 countries. Smiths Medical, based in Plymouth, Minnesota, is a... Read More »
Parthenon Capital Sponsors RxSense

Parthenon Capital Sponsors RxSense

Parthenon Capital added to its growing list of healthcare companies with its recent “significant” investment in RxSense, a healthcare technology company offering prescription savings plans to consumers and pharmacy benefit services and analytics to enterprise customers. Proceeds from the transaction will be used for various growth initiatives. Terms of the investment were not disclosed. Boston-based RxSense and its direct-to-consumer division combine its proprietary technology platform with direct contracts with the nation’s largest pharmacies and extensive consumer engagement tools, to deliver low prices on prescription drugs. Its consumer prescription savings plans deliver... Read More »
Mushroom Company Buys Ketamine Clinic

Mushroom Company Buys Ketamine Clinic

This could be the start of something psychedelic. Vancouver-based Champignon Brands Inc. (CSE: SHRM/OTCQB: SHRMF), a medicinal mushroom researcher, made its first acquisition in mid-May. As part of its plan to open five new U.S. healthcare clinics in 2020, the company bought Ketamine Wellness Clinic of Orange County in a cash-and-share deal. The clinic provides ketamine infusion services and is located on the Mission Hospital campus in Laguna Beach, California. Ketamine therapy is used to induce and maintain anesthesia, but “has emerged as a promising treatment option for many chronic diseases, such as depression, anxiety, post-traumatic stress disorder (PTSD), fibromyalgia and... Read More »
Health Care M&A Deals, May 15, 2020

Health Care M&A Deals, May 15, 2020

The Health Care M&A deals chart is a selection of transactions announced during the prior week(s). The M&A transactions presented here are from our Deal Search Online database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. This week’s top deals include Primary Health Properties acquisition of a portfolio of medical office buildings for $66.6 million and The DNA Company’s purchase of My Pain Sensei for $30 million. To subscribe to our Health Care M&A deals chart and more, visit our membership site. HealthCareMandA.com is devoted to healthcare merger and acquisition data for... Read More »
TearLab Corporation Goes Private with Accelmed

TearLab Corporation Goes Private with Accelmed

Deal making hasn’t shut down entirely. The technology healthcare sectors are still attracting investors. The most recent is TearLab Corporation’s (OTCQB: TEAR) acquisition by Accelmed Partners, New York City-based group of funds investing in health tech companies in the medical device, diagnostics, and digital health areas. TearLab develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve the standard of care by testing for disease biomarkers in tears at the point of care. The TearLab Osmolarity Test, to aid in the diagnosis of Dry Eye Disease, is the first assay developed for the TearLab Osmolarity System. In connection with the acquisition,... Read More »
PTC Therapeutics Scoops up Censa Pharma

PTC Therapeutics Scoops up Censa Pharma

PTC Therapeutics, Inc. (NASDAQ: PTCT) jumped into competition with BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) with its acquisition of Censa Pharmaceuticals, Inc. Censa has developed CNSA-001 (sepiapterin), a clinical-stage investigational therapy for orphan metabolic diseases, including phenylketonuria (PKU) and other diseases associated with defects in the tetrahydrobiopterin (BH4) biochemical pathways diagnosed at birth. CNSA-001 has been tested as a possible treatment for orphan metabolic diseases associated with defects in the tetrahydrobiopterin biochemical pathways. CNSA-001 is an oral formulation of synthetic sepiapterin, a precursor to intracellular tetrahydrobiopterin, which is a... Read More »
April Healthcare M&A Took a Hit

April Healthcare M&A Took a Hit

Correlation doesn’t prove causation, but the evidence is hard to ignore. April healthcare M&A took a hit as COVID-19 forced businesses to close, workers to stay home, and providers to divert all their attention toward treating the flood of infected patients. Compared with last March, April saw a 21% drop in activity and a 34% drop compared with April 2019. The decline was even more pronounced among the sectors. Long-Term Care, an unfortunately hard-hit industry from the pandemic, suffered a profound drop of 40%. Our colleagues on the senior care side used the word “anemic” to describe the second half of April for Long-Term Care transactions. Half of the month’s deals closed in the... Read More »
Mednax Sells American Anesthesiology

Mednax Sells American Anesthesiology

Deal making is getting more creative in the time of COVID-19. Mednax, Inc. (NYSE: MD) sold its anesthesiology group, American Anesthesiology, Inc., to North American Partners in Anesthesia (NAPA), a portfolio company of American Securities, for $50 million. In an 8k filing on May 6, Mednax added a few terms to that $50 million price. It retained the accounts receivable of American Anesthesiology, which, net of various other working capital items, which were approximately $110 million as of March 31, 2020. It also retained a contingent economic interest in the success of NAPA with a value ranging from $0 to $250 million based upon the multiple of invested capital returned to NAPA’s owners... Read More »
Health Care M&A Deals, May 15, 2020

Health Care M&A Deals, May 8, 2020

The Health Care M&A deals chart is a selection of transactions announced during the prior week(s). The M&A transactions presented here are from our Deal Search Online database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. This week’s top deals include Portola Pharmaceuticals, Inc.’s acquisition of Alexion Pharmaceuticals, Inc. for $1.6 billion and Menarini Group’s purchase of Stemline Therapeutics Inc. for $629.7 million. To subscribe to our Health Care M&A deals chart and more, visit our membership site. HealthCareMandA.com is devoted to... Read More »

Private Equity in the Age of COVID-19

The effects of the COVID-19 on the healthcare M&A market will be difficult to discern for some time. Dealmaking takes a few months at least, so most announced transactions today were set in motion before the pandemic hit. The first quarter essentially dodged a bullet, but the start of Q2 is a much more precarious situation for investors and private equity. States are eager to loosen social distancing guidelines to boost the economy, but changing the public’s perceived risk of infection might not be so easy, so creating a rebound might prove a significant challenge. Hospitals and providers are still dealing with the flood of COVID-19 patients, cutting off revenues from elective... Read More »