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Deal of the Week: Celgene/Impact

Deal of the Week: Celgene/Impact

Biotechnology deals are off to a strong start in 2018, thanks to the Biotech Showcase 2018 held every year alongside the J.P. Morgan Healthcare Conference. In the first two weeks, 16 transactions were made public. This year, the Showcase registration desk was just getting into full swing on Sunday, January 7, when Celgene Corp. (NASDAQ: CELG) announced its $1.1 billion acquisition of Impact Biomedicines, a privately held biotech based in San Diego. The draw is Impact’s lead product candidate, fedratinib, a highly selective JAK2 kinase inhibitor that is being evaluated for myelofibrosis and polycythemia vera. Fedratinib was evaluated in 877 patients across 18 clinical trials. In a... Read More »

Health Care M&A Weekly Deals, The Week Ending January 5, 2018

We hope you are enjoying your membership to HealthCareMandA.com. This Health Care M&A Weekly chart below is a selection of transactions announced during the prior week(s). The deals presented here are further elaborated in the monthly newsletter, Health Care M&A News, and in the quarterly report. This information also appears in our online database, Deal Search Online. Visit www.dealsearchonline.com to open a guest account and begin your search. Biotechnology     Acquirer Target Price Pfizer Inc. Collaboration on PROTACs N/A Roche Research collaboration on novel bispecific molecule $10 million Biocrates Life Sciences AG Metanomics Health GmbH N/A Reckitt... Read More »
Deal of the Week: Celgene/Impact

Deal of the Week: Takeda/TiGenix

Japanese pharmaceutical giant Takeda Pharmaceutical Company Limited (TSE: 4502) declared its intention to acquire 100% of the voting rights it doesn’t already own in the Dutch biotechnology company TiGenix NV (NASDAQ: TIG). Takeda is offering $627 million in cash, representing an 82% premium over TiGenix’s closing price prior to the date when the news of the deal broke. On January 5, 2018, the day the news broke, TIG stock shot up nearly 71%, to $40.75. TiGenix is an advanced biopharmaceutical company focused on exploiting the anti-inflammatory properties of allogeneic, or donor-derived, stem cells. Upon the acquisition, TiGenix will become a subsidiary of Takeda. The... Read More »
Pharmaceutical Deals Took a Dive in 2017

Pharmaceutical Deals Took a Dive in 2017

On the eve of the 36th annual J.P. Morgan Healthcare Conference, it’s only fitting to take a look at where pharmaceutical deals ended up at the end of 2017. Suffice to say, at a record low deal volume. Preliminary data show just 96 transactions for pharmaceutical targets were announced last year, the first time pharma deals have notched a two-digit deal volume since 2001 (87 deals then). That marks a 38% decline from 2016’s 156 transactions, and a 49% drop from the most recent high-mark of 188 deals announced in 2014. Spending was also anemic, with just $28.1 billion committed to finance those deals. That’s 67% below last year’s $84.8 billion, and 87% lower than the... Read More »

Stat of the Week: December 2017 +23%

Talk about saving the best for last. For months, deal volume has stagnated, slipped, and failed to excite. Then December happened. Six deals with prices over $1 billion were announced, and their combined value was $91.7 billion. Of course, the CVS/Aetna (NYSE: CVS/AET) deal accunted for most of that, at $77 billion. But what counts is that these deals showed the game is changing in the healthcare market, and market forces and investors are working outside the usual Medicare/Medicaid reimbursement policies. Let’s start with December’s deal volume. At 121 transactions (so far, more will undoubtedly be added), the total is up 23% compared with November’s 98 transactions, but 5% lower than the... Read More »
Q4:17 Redefined Healthcare M&A

Q4:17 Redefined Healthcare M&A

Despite all the big deals announced in December, the fourth quarter of 2017 wasn’t one for the record books. Merger and acquisition activity was busy, but compared with the previous quarter and the same period in 2016, the pace wasn’t frenetic. Our preliminary data shows 357 transactions were announced in Q4:17, down a slight 4% compared with the third quarter of 2017, and down 8% versus the fourth quarter of 2016. Dollar volume, on the other hand, was quite high. Preliminary data (again) shows nearly $114.3 billion was spent in Q4:17, a 165% gain over Q3:17, and nearly 200% over Q4:16. That total rests largely on the back of a single deal, which you’ve probably heard... Read More »
Deal of the Week: UnitedHealth Buys Banmedica SA

Deal of the Week: UnitedHealth Buys Banmedica SA

UnitedHealth Group (NYSE: UNH) wasted no time dwelling on its recent acquisition of DaVita Medical Group (NYSE: DVA) for $4.9 billion. On December 22, the healthcare giant announced its acquisition of Chilean healthcare company Banmedica SA (SSE: SGO) for $2.8 billion. Banmeica sells health insurance, operates hospitals and provides other services. It generated approximately $2.1 billion in revenue last year and has operations in Chile, Columbia and Peru. UnitedHealth is looking to grow in emerging and established global healthcare markets where it can leverage its expertise as both an insurer and a provider of medical care. The transaction enables Banmedica to leverage United... Read More »
Top 10 Health Care Deals of 2017

Top 10 Health Care Deals of 2017

“Variety” best describes the top 10 healthcare deals announced in 2017. The target companies spanned sectors from Biotechnology and Medical Devices to Managed Care and Other Services. You know the healthcare game is changing when just a single pharmaceutical target made the list in 2017, compared with six of the top 10 deals in 2015. The 10 largest deals total $182.1 billion, and account for 59% of the year’s preliminary deal value total of approximately $310.7 billion. In 2016, the top-10 accounted for 51% of the year’s $256.7 billion in spending. In 2017, a Managed Care target was again the largest target of the year. Unlike in 2o15, when the Big Five managed care companies... Read More »

Health Care M&A Weekly Deals, The Week Ending January 5, 2018

We hope you are enjoying your membership to HealthCareMandA.com. This Health Care M&A Weekly chart below is a selection of transactions announced during the prior week(s). The deals presented here are further elaborated in the monthly newsletter, Health Care M&A News, and in the quarterly report. This information also appears in our online database, Deal Search Online. Visit www.dealsearchonline.com to open a guest account and begin your search. Biotechnology     Acquirer Target Price Pfizer Inc. Collaboration on PROTACs N/A Roche Research collaboration on novel bispecific molecule $10 million Biocrates Life Sciences AG Metanomics Health GmbH N/A Reckitt... Read More »
Behavioral Health Care Deal Trends in 2017

Behavioral Health Care Deal Trends in 2017

The Behavioral Health Care sector has enjoyed growing interest from private equity and other investors in recent years. Federal legislation regarding coverage of mental health conditions certainly boosted that interest, as has the growing public acceptance of the magnitude of need for services. Also, the fragmented nature of this sector has kept platform-building acquisitions rather low. From a focus standpoint, behavioral health care covers mental health issues, as well as substance abuse, eating disorders, autism spectrum services and care for individuals with developmental disabilities. Co-morbidities often exist, particularly between mental health and substance abuse conditions. Then... Read More »