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Health Care M&A Weekly Deals, The Week Ending December 15, 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. Behavioral Health Care Acquirer Target Price Biotechnology Acquirer Target Price Allergan plc Repros Therapeutics Inc. $26.5 million Ono Pharmaceutical Co., Ltd.... Read More »
DaVita Dumps Its Doc Group for $4.9 Billion
Kidney care specialist DaVita (NYSE: DVA) made good on its statement that it was exploring strategic alternatives for its DaVita Medical Group (DMG). It found a buyer in UnitedHealth Group’s (NYSE: UNH) Optum, which agreed to pay $4.9 billion for DMG, the highest publicly announced price it has paid for a physician group. In January, Optum announced its take-out of Surgical Care Affiliates, Inc. (NASDAQ: SCAI) for $3.2 billion. The company partners with health plans, medical groups and health systems to develop and optimize surgical centers. At the time of the announcement, it operated 205 surgical facilities, including ambulatory surgery centers and surgical hospitals, in partnership with... Read More »
Dignity Health and CHI Make It Official
Dignity Health and Catholic Health Initiatives, two major not-for-profit health systems, signed a letter of intent to explore a merger in October 2016, and finally tied the knot in December. Although Catholic Health is the larger of the two, with 101 hospitals, its financial picture isn’t a rosy as its partner’s. Dignity Health, based in San Francisco, is a 22-state network of more than 9,000 physicians and other advanced practice clinicans and 63,000 employees. It operates 39 acute-care hospitals and 250 ancillary care sites such as urgent and occupational care, imaging centers, home health and primary care clinics. In fiscal 2017, which ended on June 30, it reported revenue... Read More »Deal of the Week: CVS/Aetna
The biggest deal of the year (so far) was announced on Sunday, December 3, no doubt timed to give media outlets a fresh story to begin the week. By now you know that CVS Health Corp. (NYSE: CVS) and managed care giant Aetna (NYSE: AET) plan to merge in mid-2018, to the tune of $77 billion (including Aetna’s debt). The deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and stock: $145 in cash and $62 in stock. Besides being the largest deal announced in 2017 (since 2015, in fact), the unusual combination portends major changes in the U.S. healthcare market. Or not. Skeptics abound regarding... Read More »
Stat of the Week: November Deal Volume -30%
Perhaps it was the anticipation of the Thanksgiving holiday, or the holiday itself, that caused the sudden slump in deal volume. Too much turkey, too little focus on finishing up those transactions? Or we could blame the Republicans’ mad dash to pass their tax “reform” legislation before the end of the year. Both houses of Congress have passed separate versions of the bill, and are presently reconciling those into one, for a final vote. How that will look at the other end of the sausage machine is anyone’s guess, but once the bill is passed, we may see the floodgates open on pent-up demand in the more global sectors, such as Medical Devices and Pharmaceuticals. This is preliminary data, of... Read More »
CVS, Aetna Lead a Potential Big-Deal Parade
The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion (-49% vs. $38.6 billion in Q4:16). But late on December 3, CVS Health (NYSE: CVS) and managed care giant Aetna (NYSE: AET) announced their $69 billion merger. More mega-deals are in the offing. Possibly. The CVS/Aetna deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and... Read More »
It’s When, Not If, for Bundled Payments
If you think the Bundled Payment Care Improvement(BPCI) initiative is a thing of the past, think again. Even though the Centers for Medicare and Medicaid Services (CMS) issued a final rule cancelling the episode payment models, that method of reimbursement is embedded in the healthcare system. That’s the strong opinion of a panel of industry players we assembled for our webinar, “Bundled Payments: The Changing Outlook on Post-Acute Care,” on November 30, 2017, the same day that CMS made the announcement. Here’s what Chris Garcia, CEO of Remedy Partners, and Eugene Goldenberg, VP at Cain Brothers, and Rich Tinsley, CEO of Stoneridge Partners, had to say. Garcia had... Read More »
Stat of the Week: ‘Other Services’ Drops 19% in Q3:17
Investors have flocked to the “Other Services” sector this year, as its ancillary nature keeps the companies that comprise it largely outside the purview of reimbursement regulations and other stroke-of-the-pen sectors. The 42 transactions announced in this sector in the third quarter represent a 19% decrease from the previous quarter, and a 32% decrease compared with the year-earlier quarter. Deal volume accounted for 22% of the 192 deals announced in the past 12 months. The “Other Services” category covers products and services related to human health care, but in an ancillary way, such as contract research organizations, ambulatory surgery centers, institutional and... Read More »
Deal of the Week: Melinta/The Medicines Co.’s Antibiotics
As part of a previously announced restructuring plan, The Medicines Company (NASDAQ: MDCO) is selling its infectious disease business unit in order to double-down on its promising drug candidate, inclisiran. The drug is currently in Phase 3 development, and completion is expected in the second half of 2019. That’s a long way away, and MDCO needs “sufficient cash and liquidity” to reach the goal line. That’s why, on November 29, the company announced an agreement to sell its infectious disease business unit, including three marketed antibiotics, Vabomere, Orbactiv® and Minocin IV. Melinta Therapeutics, Inc. (NASDAQ: MLNT), the buyer, will pay $540 million, as well as... Read More »Schedule a demo
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