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Deal of the Week: Almost Family/LHC Group
The Home Health & Hospice sector is gearing up for a busy 2018, compared with the sluggish performance turned so far in 2017. Two leading companies, LHC Group (NASDAQ: LHCG) and Almost Family (NASDAQ: AFAM) announced a “merger of equals” on November 16. That transaction followed third-quarter earnings calls from Amedysis (NASDAQ: AMED) and Brookdale Senior Living (NYSE: BKD) with each CEO discussing aggressive moves into the hospice sector. Bring it on! M&A activity in the Home Health & Hospice sector has been slow, to say the least, throughout 2017. Prior to the LHC/Almost Family announcement, just 41 deals were reported through mid-November, with a meager $20.9 million in... Read More »
Cardinal Health Sheds its China Operations
Cardinal Health Inc. (NYSE: CAH) put its Cardinal Health China business up for sale in July of this year, following concerns that upcoming drug distribution reform could threaten the company’s growth. Cardinal’s China business is the eighth largest drug distributor in the country, operating 14 direct sales units and 17 distribution centers that cover 322 cities and 11,000 medical institutions. The bidding process was very competitive, according to Reuters, and names like Warburg Pincus were rumored to have competed in the final rounds, among other private equity and Chinese pharmaceutical bidders. On November 14th, Cardinal Health announced that Shanghai Pharmaceuticals Holding Co., Ltd.... Read More »
Deal of the Week: McKesson/RxCrossroads
The largest deal announced in a very sluggish week for healthcare announcements was McKesson Corp.’s (NYSE: MCK) $735 million acquisition of RxCrossroads from CVS Health Corp. (NYSE: CVS). RxCrossroads provides a range of specialty distribution, pharmacy and patient support to biopharmaceutical manufacturers. CVS acquired it in 2015 as part of its $12.7 billion deal for Omnicare Inc., which specialized in managing pharmaceutical care in long-term care and assisted living facilities. Omnicare paid $235 million for RxCrossroads in 2005, when it reported annualized revenue of $46 million. For McKesson, RxCrossroads will help it to capitalize on what the coming boom in the specialty... Read More »Health Care M&A Weekly Deals, The Week Ending November 10, 2017
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 OncoResponse Paganini Biopharma N/A CERENIS Therapeutics LYPRO Biosciences Inc. N/A ClearLight Diagnostics, LLC License to IP relating to CLARITY N/A Home Health Care & Hospice Acquirer Target Price... Read More »
eHealth Deals Dipped in Q3:2017
Merger and acquisition activity in the eHealth sector decreased in the third quarter, down 5% compared with the previous quarter, to 42 deals. However, the quarter’s results were 45% higher than the same period a year earlier. The third quarter’s total represents a 26% share of the 164 deals announced in the previous 12 months. Information technology underpins every aspect of the healthcare industry, as it does in virtually every other market. The repeal-and-replace effort has had little impact on investor interest in this sector, as technology stocks continue to dominate the equity markets. Source: HealthCareMandA.com, October 2017 Of the 42 deals announced in Q3:17, only seven disclosed... Read More »
Stat of the Week: Add-on Behavioral Deals +225%
Behavioral health care mergers and acquisitions are setting new records in 2017. With two months left in the year, announced transactions in this sector have already surpassed 2016’s then-record of 45, making it the most active year for M&A. What’s driving deal activity? Earlier in the year, we saw a couple of REIT acquirers move into the space, which is something that didn’t happen last year. REIT activity has since tapered off. The real driver is private equity firms building out their portfolios. In 2016, PE firms made 11 direct behavioral health acquisitions and 13 add-on deals via a portfolio company, according to our database. So far in 2017, private equity firms have only made... Read More »
Diplomat Adds Pharmacy Benefits Management to Its Roster
Pharmacy benefit management (PBM) deals have picked up slightly in 2017. With less than two months left in the year, six of these deals have been announced, up from 2016’s total of three deals. The most recent announcement is Diplomat Pharmacy Inc.’s (NYSE: DPLO) acquisition of National Pharmaceutical Services for $47 million. Diplomat, a specialty pharmaceutical company, has been active acquiring other specialty pharmacy groups over the past two years. The NPS deal marks its entry into the PBM space. Pharmaceutical Technologies, Inc., dba National Pharmaceutical Services, is a full-service pharmacy benefit manager that provides proprietary claims-processing system and offers mail-order... Read More »
Home Health Deals Still Sluggish in Q3:17
The Home Health & Hospice sector has been buffeted by headwinds in 2017. Besides the ongoing labor shortage and federal fraud investigations, the President’s recently signed executive orders affecting cost-sharing reductions for families and individuals earning less than 400% of the federal poverty level could curtail use of home health agencies. Deal volume remained depressed in the third quarter, at 10 transactions, which represents 20% of the 51 deals announced in the past 12 months. Compared with the same period a year earlier, deal volume was down 17%. Source: HealthCareMandA.com, October 2017 None of the deals announced disclosed financial terms, just as in the second quarter.... Read More »
Clinical Trial Software Companies Are Hot
The digital health sector is benefitting big-time from the explosion in drug discovery transactions in 2017. Investors are now targeting eHealth companies specializing in clinical trial software. The statistics behind the surge in mergers and acquisitions in the drug discovery market are impressive. Through the first week in November, 43 deals targeting contract research organizations (CROs) have been announced, up nearly 70% from this time in 2016, and a 760% increase from this time in 2015. Biotechnology deals are speeding up as well, up nearly 30% from the past two years. Pharmaceutical companies are a main driver of demand in these sectors. Rather than fund in-house R&D, Big Pharma... Read More »Schedule a demo
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