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Health Care Deals Cratered in February 2017
After a very strong performance in January 2017 with 160 transactions announced, February’s deal volume collapsed 45%, to just 88 transactions (see chart below). Compared with the same month a year ago, it’s was only down 30%, to 125 deals. Don’t forget, 2016 was a leap year, so an additional six more deals snuck into last year’s results on February 29. What difference that doesn’t make for this year’s results. Yes, it’s all because of the uncertainty around the fate of the Affordable Care Act. Many of the services sectors will be effected by what becomes of Medicaid, whether states will receive block grants, or some other solution. At least two of... Read More »Recent Health Care Deals, week ending 03.03.2017
AcquirerTargetPrice Royalty PharmaRights to royalty stream of Tysabri®$2.2 billion CareTrust REIT, Inc.Illinois skilled nursing portfolio$29.2 million Sartorius AGEssen BioScience Inc.$320 million The Everett ClinicsTotem-Lake Family... Read More »
Strategic vs. Financial Healthcare Buyers in 2016
Every spring, we publish myraid statistics on the healthcare services deals announced the year before, in the form of The Health Care Services Acquisition Report. This year’s 23rd edition, which will available in late March, has this examination of what financial buyers targeted in 2016. Strategic buyers continued to dominate the health care services M&A market in 2016, as they have in the past. Their 683 deals made up 73% of the year’s deal volume. The $45.7 billion spent accounted for 63% of the combined total of $72 billion. A total of 259 deals, or 27% of the services deal volume in 2016, were carried out by financial buyers, such as private equity firms and real estate... Read More »Perrigo Lets Go of Tysabri Royalties
What goes around comes around. It doesn’t seem that long ago that the Dublin-based drug firm Elan Corporation plc was fighting off the hostile advances of Royalty Pharma. It was July 2013, in fact, when Elan agreed to be acquired by Perrigo (NYSE: PRGO) for $8.6 billion. To refresh the memory, Elan was a biotech company whose portfolio included royalties from Tysabri®, a multiple sclerosis treatment, and a neuropsychiatric pipeline with near-term value creation potential. Early February 2013, Elan sold half of its rights to Tysabri to Biogen Idec, now known as Biogen Inc. (NASDAQ: BIIB), for $3.25 billion. At the time, the terms called for $3.25 billion upfront cash plus 12% of... Read More »Sterling Partners Expands into Ophthalmology
Sterling Partners, a Chicago-based private equity firm, added the first ophthalmology practice to its healthcare services portfolio with the acquisition of Grand Rapids Ophthalmology. GRO is the first eye care provider to join Great Lakes Management Services Organization, a practice management services organization formed by Sterling to support GRO’s local expansion and larger-scale growth. GRO offers a full suite of eye care services including optometry, retail optical, oculoplastics, cataract surgery and retinal sub-specialties. It employs 11 ophthalmologists and 18 optometrists in 11 locations. Sterling Partners has been busy building up platforms in other areas of healthcare services,... Read More »What’s Next for Managed Care?
The managed care mega-deals of 2015 have blown up. Aetna (NYSE: AET) and Humana (NYSE: HUM) amicably terminated their $37 billion merger, following a federal judge’s order in January to block the deal on antitrust grounds. The $1 billion termination fee was in the works. A different federal judge blocked Anthem (NYSE: ANTM) and Cigna’s (NYSE: CI) $54.2 billion merger on similar grounds. Things turned ugly quickly, as Cigna declared the deal dead and sued Anthem for the $1.85 billion termination fee, and another $13 billion in damages on behalf of its shareholders. Anthem says it will go ahead with the merger. What do the Big Five health insurers do now that they’re... Read More »Recent Health Care Deals, week ending 02.24.2017
AcquirerTargetPrice NHP Foundation-Urban Atlantic Fund I, LLCErrichetti Senior Portfolio$43 million Nordson CorporationVention's advanced technology business $705 million TerSera Therapeutics LLCLicense to Zoladex$250 million Genesis HealthCare LLC Hospice... Read More »Hospitals Are Buying in to Home Health
One anticipated trend that did not come to fruition in 2016 was hospitals entering the home health & hospice space. The advent of bundled payments placed tremendous emphasis on providers to control the patient engagement from start to finish, making it almost imperative for health systems to secure post-acute care providers in the home health and rehabilitation sectors. In 2012 and 2013 combined, there were only two deals involving a hospital purchasing a home health & hospice company. In 2014 and 2015, there were just two deals each year, and in 2016 we saw three. However, in the first month of 2017, three hospital groups have purchased home health & hospice companies.... Read More »
Reporters Notebook: 10th Annual ACG NY Healthcare Conference
The ACG New York chapter held its annual healthcare conference at the Metropolitan Club on February 23, as always, on the last Thursday of the month. We attended, along with more than 400 others involved in the healthcare industry. The evening’s topic, “The 2016 Election and Healthcare: What You Need to Know,” was obviously the big draw. Moderator Michael Gaffin, Marwood Group’s political strategist and head of its Washington office, played his cards close to the vest during most of the panel, but did opine that the Republicans will be able to do whatever they want to the Affordable Care Act, because they’ve been talking about it so long. On the panel were... Read More »Schedule a demo
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