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The State of the Rehabilitation M&A Market
Throughout 2020, there wasn’t much to write about in the Rehabilitation sector. The industry was under regulatory pressure from CMS in the beginning of 2020, and then Covid-19 came around, making things even more difficult. Social distancing guidelines hindered in-person appointments, and we imagine that the effects of surgery cancellations at hospitals trickled down into this sector as well. U.S. Physical Therapy, Inc. (NYSE: USPH), one of the largest rehabilitation providers, saw a 13.8% drop in net patient revenue in 2020 compared with 2019, for instance. However, It was more difficult to discern the effects in the M&A market. The sector barely breaks double-digit deal volume on a... Read More »
CROs Are Back in Demand
Last year was not kind to contract research organizations (CROs). CROs typically provide discovery and development services to companies in the Medical Device, Pharmaceutical and Biotechnology sectors, conducting clinical trials and providing a wealth of R&D support. Demand for their services have seen a gradual rise over the last decade for a variety of reasons. An increasing number of start-ups have popped up in the Biotechnology sector, and they don’t have the resources or infrastructure that major players would have to oversee the complex R&D needed to bring a drug to market, so they often outsource much of that task to CROs. Second, big pharma and biotech are increasingly... Read More »
Kindred Healthcare Adds Two Rehab Hospitals
The healthcare services giant Kindred Healthcare, LLC is back in the M&A market. Much of the company’s activity has focused on partnerships and new development projects, but now Kindred is adding two rehabilitation hospitals with two separate joint ventures. The first deal was announced in partnership with Texas Health Resources, a faith-based, not-for-profit health system. The two companies have jointly taken control of Everest Rehabilitation Hospital of Keller, a 36-bed rehabilitation hospital located in the northern suburbs of Fort Worth, Texas that just opened in December 2020. The hospital will be renamed Texas Rehabilitation Hospital of... Read More »
Amgen Acquires Five Prime Therapeutics
The biotech giant Amgen, Inc. (NASDAQ: AMGN) has announced a new deal for Five Prime Therapeutics (NASDAQ: FPRX), a clinical-stage biotechnology company focused on developing immuno-oncology and targeted cancer therapies. The company collaborates with leading global pharmaceutical companies and has therapies in pre-clinical and clinical development. Amgen will acquire Five Prime Therapeutics for $38.00 per share in cash, representing an equity value of approximately $1.9 billion. The dollar-per-share amount is a 78% premium to Five Prime’s closing price on March 3, 2021. The transaction comes out to an estimated 232x Five Prime Therapeutics’ annualized revenues. However, the company... Read More »
Health Care M&A Deals, March 5, 2021
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 HealthCareMandA.com Deal Database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. The largest deal of the week by disclosed price is Amgen’s acquisition of Five Prime Therapeutics for $1.9 billion. Five Prime Therapeutics Five Prime Therapeutics is a clinical-stage biotechnology company focused on developing immuno-oncology and targeted cancer therapies. The company collaborates with leading global pharmaceutical companies and has therapies in... Read More »
Health Care M&A Deals, February 26, 2021
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 HealthCareMandA.com Deal Database, which is updated daily to provide our subscribers with the most up-to-date information and trends in the healthcare industry. The largest deal of the week by disclosed price is ICON plc’s acquisition of PRA Health Sciences, Inc. for $12.5 billion. PRA is one of the world’s leading global contract research organizations by revenue, providing outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries. PRA’s global clinical development platform... Read More »
Brookdale Divests Home Health & Hospice Business
After months of rumors swirling about a deal, Brookdale Senior Living (NYSE: BKD) has announced the divestment of a majority stake in its home health and hospice business, Brookdale Health Care Services. The senior living giant is selling an 80% interest in its home health and hospice business (including its outpatient therapy business) to HCA Healthcare (NYSE: HCA), the Tennessee-based health system. The sales price is $400 million, implying a $500 million valuation for 100% interest. This comes to about 1.36x revenues for the trailing four quarters ended December 30, 2020, and perhaps 18x to 20x 2021 normalized EBITDA. Last year, our colleagues at The SeniorCare Investor wrote that it... Read More »
ICON Acquires PRA Health Sciences
The contract research organization giant ICON plc (NASDAQ: ICLR) is growing its market reach through the acquisition of PRA Health Sciences, Inc. (NASDAQ: PRAH). The deal is valued at $12 billion, with the per share merger consideration consisting of $80 in cash and 0.4125 shares of ICON stock. The consideration represents an approximately 30% premium to PRA’s closing price as of February 23, 2021. The transaction value comes out to around 3.77x revenue and 20.2x EBITDA, annualized. PRA is one of the world’s leading global contract research organizations by revenue, providing outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries.... Read More »
Merck Boosts Autoimmune Portfolio With New Deal
The pharmaceutical giant Merck & Co., Inc. (NYSE: MRK) is back with a new deal, acquiring Pandion Therapeutics, Inc. (NASDAQ: PAND) for $1.85 billion, or $60 per share in cash, a 134% premium to the prior day’s closing price. Pandion Therapeutics is developing novel therapeutics designed to address the unmet needs of patients living with autoimmune diseases. Pandion’s TALON (Therapeutic Autoimmune reguLatOry proteiN) drug design and discovery platform enable the company to create a pipeline of product candidates using immunomodulatory effector modules. In 2020, the company generated approximately $10.5 million in revenue, but reported a loss in EBITDA of approximately $43.2 million. ... Read More »Schedule a demo
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