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Spending on Health Care Deals Popped in April
April deal volume disappointed, with 103 deals and a decrease of 29% compared with March 2017 (145 deals). On the spending side, April’s preliminary spending total increased 931% compared with the previous month’s $4.8 billion. Here’s the breakdown. April’s combined spending hit $49.9 billion, which was 15% higher than the total in April 2016. This month’s high was the result of a single large deal, the $24 billion spent by Becton, Dickinson and Company (NYSE: BDX) for C.R. Bard (NYSE: CBR), in the Medical Device sector. Also worth noting is the more than $9.0 billion spent by Hellman & Friedman to buy out the majority stake owned partner, The Carlyle Group (NYSE:... Read More »CRO Consolidation Tops $13 Billion in 2017
2017 is the year of the CRO deals. In the first four-and-a-half months of 2017, 17 deals targeting a CRO (contract research organization) have been announced, with disclosed spending of approximately $13.8 billion. Just a few weeks after Hellman & Friedman LLC took over the majority stake in Pharmaceutical Product Development, LLC (PPD) for $9.05 billion in April, the CRO market witnessed another mega deal. On May 11, 2017, INC Research Holdings, Inc. (NASDAQ: INCR) a contract research organization providing Phase 1 to Phase 4 clinical development services, announced that it merged with privately-held inVentiv Health in an all-stock transaction valued at $4.6 billion. The combination... Read More »
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 »Schedule a demo
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