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Cardinal Health Can’t Please Everyone
Cardinal Health, Inc. (NYSE: CAH) announced its $6.1 billion acquisition of three Medtronic businesses (NYSE:MDT) on the same day it disappointed shareholders with its 2017 guidance update. It’s been a tough April for Cardinal Health, the healthcare services and products company that operates through its Pharmaceutical and Medical segments. On April 18th, 2017, the company released a disappointing guidance update stating that its fiscal 2017 non-GAAP EPS from continuing operations will be at the bottom of its previous guidance range of $5.35 to $5.50. The company pointed to generic drug deflation as one of the leading factors. That same day, the company announced its largest deal to date,... Read More »Abbott and Alere: The Wedding Is Back On!
It seems so long ago. Back in February 2016, Abbott (NYSE: ABT) and Alere Inc. (NYSE: ALR) announced their $5.8 billion deal. Abbott’s board okay’ed paying $56 per common share of Alere, representing a 51% premium to the company’s close on January 28, 2016. Abbott also assumed $2.6 billion of debt. The combination was expected to create a premier point-of-care testing business and to strengthen Abbott’s diagnostics presence. Alere’s main business is its point-of-care diagnostics and services, which are focused on the areas of infectious disease, cardio-metabolic disease, and toxicology. Point of care testing is a $5.5 billion segment, and one... Read More »REITs Move in on Behavioral Health
When it comes to health care, real estate investment trusts (REITs) typically target medical office buildings, which can be converted to other uses more easily than an acute-care hospital can. But some privately held hospitals and health systems are turning to REITs as a way to get cash out of a portfolio company, sometimes without exiting. Through April 2017, two deals have featured a REIT as hospital acquirers, compared with only one announced deal in 2016. Now, behavioral health hospitals are REIT targets. Ventas’ (NYSE: VTR) 2015 healthcare REIT spinoff, Care Capital Properties, Inc. (NYSE: CCP), recently moved into the behavioral health care sector. On April 10, the company... Read More »Medical Device Deals Spring Back to Life
The Medical Device sector ended the first quarter of 2017 with 22 announced deals, almost even with Q4:16’s total of 23 deals, and down 29% from the year-ago quarter. But the lull may not last into the second quarter. As of April 10, 2017, three medical device deals have been announced in Q2:17. On April 4th, Becton, Dickinson and Company (NYSE: BDX) acquired privately held Caesarea Medical Electronics (CME) for an undisclosed price. CME designs, manufactures and markets a range of infusion and syringe pumps, as well as related accessories and disposable administration sets for both home care and hospital settings. The acquisition expands BD’s infusion portfolio to include... Read More »Investors Make Many, Many Small Bets in March 2017
They don’t call it March Madness for nothing. After a few months of slowing merger and acquisition activity, deal volume spiked back to 2016 levels. The 139 deals announced in March 2017 were only 4% below the 145 deals announced in March 2016, when healthcare M&A was barrelling along. Deal volume was 46% higher than the previous month’s 95 transactions, but that’s not a fair comparison. February is the shortest month, and March always seems to drag on and on. Besides, the early days of the Trump administration were (and still are) tempestuous, to say the least. March 2017’s increase in activity may be a signal that investors are just going to get on with their plans, or it may be they... Read More »ResCare Switches to ‘Home Health Lite’
ResCare Inc., a portfolio company of Onex Corp. (TSE: ONEX), is changing the direction of its home health segment. ResCare, the nation’s largest private provider of services to people with disabilities, has been divesting its home health assets since 2014. A recent 10-K filing by Onex Corp. stated that ResCare was exiting the skilled line of business in the home care segment and transitioning to home health services without the skilled nursing. The exit resulted in a 2% decrease in revenue between 2015 and 2016, which was substantially offset by acquisitions within the home care and residential services segments, according to the filing. On April 10, 2017, Active Day/Senior Care... Read More »Managed Care Deals Slide, Then Settle
Mergers and acquisitions in the Managed Care sector had a good run back in 2015. Since then, it’s been slow going for deal makers. Following a hot streak of transactions in 2015, M&A activity didn’t just trail off in 2016, deal volume cratered—down 52%, to 21 transactions. The recent high of 43 deals announced in 2015 has been revised downward, and will be again by the end of the year. The mega-deals of 2015, announced between Aetna (NYSE: AET) and Humana (NYSE: HUM) at $37 billion, and Anthem (NYSE: ATHM) and Cigna (NYSE: CI) at $54.2 billion, have been blocked on antitrust grounds by two federal judges. In February 2017, Aetna and Humana called off... Read More »DaVita Divests Seven Dialysis Clinics
DaVita Inc. (NYSE: DVA) isn’t usually on the sell-side of dialysis deals. In fact, the company hasn’t announced a sale from its renal care division in the past five years. But in late March, the Federal Trade Commission ordered DaVita to divest its ownership in seven dialysis clinics. That order was part of a settlement resolving charges that DaVita’s $358 million acquisition of Renal Ventures Management, LLC would be anticompetitive. At the time of that deal’s announcement in August 2015, Renal Ventures operated 36 dialysis clinics in six states. The company’s two divisions, Multispecialty Physician Partners and Physician Venture Partners, operated infusion... Read More »Sartorius AG Scores Two More Deals
Sartorius AG (FWB: SRT), a German pharmaceutical and laboratory equipment provider, has expanded with the acquisition of a medical device company and a digital health company for a combined total of $392.5 million. Sartorius operates through two divisions: bioprocess solutions and lab products & services. On March 3, 2017, Sartorius acquired privately-held Essen BioScience Inc. from SFW Capital Partners for $320 million. Essen develops and manufactures instruments, software, reagents and consumables which enable researchers to remotely image and quantify a wide variety of cellular processes over time. Through this acquisition, Sartorius significantly expands its portfolio for... Read More »Schedule a demo
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