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May Day! Hospital Mega-Mergers Ahead
Hospital merger and acquisition activity took a breather in the first quarter of this year. The 19 deals announced then represented a 17% decrease compared with the 23 deals announced in the fourth quarter of 2016, and a 30% decrease year over year. Readers who saw headlines in April regarding a rush of hospital mergers in the first quarter, according to data published by Kaufman Hall, should know our differing results are due to methodology. We do not report hospital mergers or acquisitions when the announcement involves signing a letter of intent, when many deals fall apart soon after. Our data derives from the more solid step in the process, when both entities have reached a definitive... Read More »Q1:17 eHealth Deals Rise 57%
Merger and acquisition activity in the eHealth sector surged in the first quarter, as investors stuck with healthcare information technology in the face of the Republicans’ effort to upend the Affordable Care Act. Deal volume rose 57% to 47 transactions compared with the previous quarter, and was up 24% compared with the first quarter in 2016. This recent quarter accounted for 28% of the 166 deals announced in the previous 12 months. Source: HealthCareMandA.com, April 2017 Of the 47 deals announced in Q1:17, only six disclosed a price, for a total of $1.9 billion. This quarter’s spending represents a 586% increase compared with the previous quarter, but a 57% decrease from the same quarter... Read More »Health Care Deals Slide in April 2017
April usually doesn’t feel like February, at least, weather-wise. As far as healthcare mergers and acquisitions go, however, deal volume in April 2017 (103 deals) feels a lot like February’s deal volume (102). The chart below shows the clear winners and losers in April 2017. Deal volume was down 29% compared with the previous month (March, 145 deals), and slid 12% compared with the year before (April 2016, 141 deals). Healthcare services deal volume accounted for just 50% of April’s preliminary total. The services sectors typically account for higher percentages than the technology sectors (although that trend is reversed when it comes to dollar volume). The services side... Read More »PE Firms Are Big on CROs
Private equity firms are taking big stakes in contract research organizations (CROs) in 2017. Through May 3, 12 CRO deals have been announced this year, up 140% from the same period last year, when only five deals were announced (these numbers do not include contract manufacturing organization deals). In late April, The Carlyle Group was rumored to be weighing the acquisition of Albany Molecular Research Inc. (NASDAQ: AMRI), a New York-based CRO. A week later, the private equity firm announced the sale of its majority stake in Pharmaceutical Product Development, LLC (PPD), a global contract research organization that provides comprehensive, integrated drug development, laboratory... Read More »Evergreen Health Goes For-Profit
Evergreen Health is living up to its name. Uncertainty in the Managed Care sector has weighed heavily on investors in 2017, with just six deals announced in the first four months. The blocked mega-mergers, coupled with the uncertain replacement of the Affordable Care Act (ACA), has created an unfriendly environment for deal making. And now, the latest deal in this sector may signal the demise of the health care co-ops established under the ACA. On May 2, not-for-profit Evergreen Health announced that it was being acquired by a group of investors in Maryland, which included JARS Health Investments, Anne Arundel Health System and LifeBridge Health, for an undisclosed price. The deal was... Read More »Q1:17 Hospital Deals Dwindle
Mergers and acquisitions in the Hospital sector suffered in the first quarter of 2017, as President Trump took office and the Republican-led Congress vowed to repeal and replace the Affordable Care Act. Hospitals and health systems felt the uncertainty as deal volume slipped 17% to 19 transactions versus the previous quarter, and dropped 30% year over year. This quarter’s deal volume represents 23% of the 81 hospital transactions announced in the previous 12 months. (N.B.: We record hospital deals when they reach the definitive agreement stage, not when a letter of intent is signed.) Source: HealthCareMandA.com, April 2017 Four transactions disclosed a price, for a combined total of only... Read More »Q1:17 Biotechnology Deals Keep Climbing
Biotechnology deal activity has climbed steadily over the past five quarters. The sector reached 62 transactions in Q1:17, an increase of 13% over the previous quarter and up 94% year-over-year. The total is 31% of the 203 deals announced in the previous 12 months. M&A in this sector will remain active for years to come, as pharmaceutical companies that have abandoned their own R&D turn to buying up smaller biotechs with promising clinical-stage compounds. The 21st Century Cures Act also benefits this sector, with its billions of dollars in financing for both the “Cancer Moonshot” and the BRAIN Initiative. In the first quarter, 20 of the 62 transactions involved the purchase of an... Read More »Becton, Dickinson Leads the Medical Device Sector
The Medical Device sector isn’t seeing a flood of deals, but the dollars are adding up fast. In the first four months of 2017, dollars committed to deals in this sector have reached 60% of 2016’s total of $61.6 billion. With just 31 deals announced, deal volume stands at 27% of last year’s total of 112 transactions. Four deals have surpassed the $1 billion mark this year, and one currently accounts for 65% of this year’s $36.9 billion total. That deal, recently announced, is Becton, Dickinson and Company’s (NYSE: BDX) $24 billion purchase of C.R. Bard, Inc. (NYSE: BCR). In late April, Becton, Dickinson (BD) announced it would pay $317.00 per share for the New Jersey-based... Read More »Fresenius Injects $5.1 Billion into its U.S. Pharma Unit
Fresenius Medical Care AG & Co. KGaA (NYSE: FMS) has been a busy deal maker. In 2016, its subsidiary Fresenius Helios bought the Spanish hospital chain Quironsalud for $6.5 billion, its Renal Care division acquired the rights to a chronic kidney disease drug for up to $282 million, and then a German-based cardiovascular medical device company for an undisclosed price. The company also picked up dialysis clinics throughout India and New York State, and other drug licenses in the meantime. Now, it has turned its attention to strengthening Fresenius Kabi, its sterile injectable medicines subsidiary. Biosimilars are a fast-growing segment within the pharmaceutical market,... Read More »Schedule a demo
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