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Health Care Investor Funding, August 2017
This monthly feature focuses on various tranches and rounds of funding for healthcare ventures, startups and funds. Links indicate target companies and lead investors. TargetInvestorsAmountDate Milestone Pharmaceuticals Montreal Canada, Inc. Novo Holdings A/S, Forbion Capital Partners, Tekla Capital Management, Domain Associates, Fonds de solidarite FTQ, BDC Capital, Pappas Capital and GO Capital$55 million Series CAugust 1, 2017 Homology Medicines, Inc.Deerfield Management, Fidelity Management, HBM Healthcare Investments, Maverick Ventures, Novartis, Rock Springs Capital, Vida Ventures, Vivo Capital and Alexandria Venture Investments. Also, 5AM Ventures, ARCH Venture Partners and Temasek.... Read More »
PE Firms Target Behavioral Health, Eating Disorder Programs
Behavioral health care has never been a particularly active sector, but deal volume has increased year-over-year between 2010 and 2016, growing 412% in that time. And there’s a good chance that 2017 will continue this trend. Through August 30, 32 behavioral health care deals have been announced, up 7% compared with the same period last year. So what else is going on this year? So far, we haven’t seen anything close to a mega-deal. The largest price tag this year was Care Capital Properties’ (NYSE: CCP) $380 million acquisition of the real estate assets of six behavioral health hospitals from Signature Healthcare Services LLC, dba Aurora Behavioral Health. This was the second... Read More »
Gilead Buys Kite Pharma to Diversify Portfolio
Gilead Sciences, Inc. (NASDAQ: GILD) finally found a target worth pursuing. The pharmaceutical company, perhaps best known for its high-priced hepatitis-C drugs, Harvoni and Solvadi, placed its bets on Kite Pharma, Inc. (NASDAQ: KITE), hoping to cash in on the biotech’s promising technology for fighting cancer. Gilead announced the acquisition of Kite Pharma for $180.00 per share, valuing the company at approximately $11.9 billion. The price represents a 29% premium to Kite’s closing price on August 25, 2017. Kite Pharma is a clinical-stage biopharmaceutical company that develops and commercializes novel cancer immunotherapy products. It is developing a pipeline of engineered... Read More »UPMC and PinnacleHealth Team Up
PinnacleHealth System wasted little time after the Federal Trade Commission blocked its merger with Penn State Hershey Medical Center in 2016. Since then, the central Pennsylvania system has announced the acquisition of five hospitals, with a total of 720 beds. Now, it’s the target in another in-state merger deal. Last March, the University of Pittsburgh Medical Center (UPMC) and PinnacleHealth signed a letter of intent to explore a merger. In mid-August, the parties announced they’d reached a definitive agreement on the deal. PinnacleHealth operates seven acute-care hospitals mainly in central Pennsylvania, with a total of 1,267 licensed beds. When it began working with UPMC... Read More »MedEquities Trust Enters the Behavioral Health Sector
Real estate investment trusts (REITs) are back in action in the Behavioral Health Care sector. Last April we reported on Care Capital Properties (NYSE: CCP) $380 million deal for six inpatient facilities owned by Signature Healthcare Services LLC (dba Aurora Behavioral Health). Early in August, MedEquities Realty Trust (NYSE: MRT) made its first move into the sector. On August 7, MedEquities announced a definitive agreement to acquire four behavioral health and substance abuse treatment facilities from subsidiaries of AAC Holdings, Inc. (NYSE: AAC), aka American Addiction Centers, for $25 million. Brentwood, Tennessee-based AAC operates 12 residential substance abuse treatment facilities,... Read More »PE Firms Line Up for Pharmaceutical Targets
Although pharmaceutical M&A has declined sharply over the past year, there has been an uptick in financial buyer activity in the sector in the first eight months of 2017. We don’t typically see a lot of financial buyers in this space, since they are easily outbid by strategic buyers that have the advantage of easy access to capital and cost synergies. Also, private equity buyers have been flocking to acquire “healthcare-lite” targets, such as eHealth or contract research organizations, in the past 12 months, largely to avoid potential regulatory and reimbursement roadblocks that come with a new administration. Pharmaceutical M&A is down 65% (only 55 deals) compared with the 156... Read More »
MEDNAX Adds More Radiologists
MEDNAX (NYSE: MD) inked its seventh acquisition of the year in a deal that expands its radiology presence into the southeastern United States. On August 23, the company announced its acquisition of Radiology Associates of South Florida (RASF) in Miami. RASF provides diagnostic radiology, interventional radiology and vascular surgery services at Baptist Health South Florida, the largest healthcare system in South Florida, inclusive of seven hospitals and more than 50 outpatient facilities, and performs approximately 1 million studies per year. Terms were not disclosed. The group’s more than 70 physicians are highly subspecialized, including cardiovascular imaging, neuroradiology, body... Read More »
Mayo Clinic Sheds its Managed Care Segment
Two not-for-profit managed care companies are joining forces, bringing the year’s total to 13 deals in the sector. On August 17, 2017, Medica Health Plans, Inc., which provides health care coverage in the employer, individual, Medicaid and Medicare markets in Minnesota, Iowa, Kansas, Nebraska, North Dakota, South Dakota and Wisconsin, announced it was acquiring Mayo Clinic Health Solutions. Financial terms were not disclosed. The target, a division of Mayo Clinic, is a health benefits management company and licensed third party administrator that provides plan administration services and health care products to 260,000 members through 28 customers. Mayo Clinic stated the deal sets... Read More »Dealing in Doc Groups Grows in 2017
For the Physician Medical Group sector, this year is shaping up to rival 2016’s merger and acquisition activity. Two multi-billion-dollar deals have been announced, through the middle of August. Two such deals were announced in 2016, although they were for larger amounts. So far in 2017, 104 transactions for physician practices have been made public, just 20% lower than the 2016 total of 130 deals. There’s still time to catch up to that recent high, obviously. Spending is a different story, as usual. Through mid-August, nearly $5.5 billion has been committed to finance these doctor deals, which is 59% lower than the full-year total of $13.3 billion in 2016. The latest major... Read More »Schedule a demo
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