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The Hospital Market in the UAE Heats Up
Healthcare deals, particularly for hospitals, are heating up in the United Arab Emirates. On December 14, NMC Health, the country’s largest private healthcare company, announced its acquisition of Al Zahra Hospital in Sharja. Al Zahra is one of the largest private hospitals in the UAE, operating 137 active inpatient beds. It serves approximately 400,000 outpatients and 23,000 inpatient bed days per year. Its owner, Gulf Medical Projects Company, agreed to a purchase price of Dhiram2.1 billion, or approximately $571.7 million. That works out to nearly $4.2 million per bed, but if the claim that the hospital had $130 million in revenue in 2015, the revenue multiple of 4.4x... Read More »Behavioral Health Deals Set to Top 2015
Behavioral health care has been a hot sector for investors in recent years. After slumping to just eight announced transactions in 2010, deal volume soared steadily to 40 transactions in 2015. As of this writing, the sector has recorded 40 transactions in 2016, with two weeks left in the year. Even if no new deals surface before January 1, we expect the deal momentum to keep building through 2017, thanks to the tailwinds provided by the passage this month of the 21st Century Cures Act. The bipartisan bill, signed by President Obama, authorizes $1 billion in state grants over the next two years to address opioid abuse and other addictions. Most of that money goes to treatment facilities,... Read More »Abbott to Alere: It’s You, Not Me
The party’s about over for the $5.8 billion Abbott (NYSE: ABT) acquisition of Alere Inc. (NYSE: ALR). Everything was bright and rosy when Abbott agreed to pay $56.00 per share for the point-of-care diagnostics and services company. Now, the $177 million termination fee Abbott faces to get out of the deal looks pretty cheap. In April, Abbott reportedly offered Alere $50 million to terminate the deal, but got no takers. The trouble began almost immediately. The day of the announcement, February 1, Alere’s stock price shot up nearly 46%, to $54.11. But later that month, it announced would delay filing its 2015 financial results with securities regulators due to revenue recognition... Read More »Biotechnology Deals Will Surpass 2015’s Record
Deal volume in the Biotechnology sector is poised to surpass last year’s record-setting 160 transactions. With two weeks left in 2016, deal volume has reached 159 transactions. The activity in this sector shows no signs of abating, and will probably carry through the first half of 2017, at least. Big Pharma companies are driving the M&A activity, as they actively compete for promising drug candidates to bolster their aging pipelines. A case in point is a deal that hasn’t been announced yet, but that the industry is watching with interest. French pharma company Sanofi (NYSE: SNY) is reported to be deep into acquisition talks with Swiss... Read More »What Private Equity Firms Are Buying in 2016
Private equity’s success relies upon forward-looking expectations about which firms are best positioned to capitalize on market conditions. The healthcare market poses unique challenges. Although healthcare targets may have the profit opportunities that appeal to PE firms, the volatile legislative and reimbursement environment can turn a “smart bet” into an albatross. A recent report from McKinsey & Company on private equity and healthcare showed that healthcare investments returned the highest global total returns to shareholders (15% between 2010 and 2015). The consumer staples category came closest to that return, with 13% in the same time period. Within the healthcare market,... Read More »Recent Health Care Deals, week ending 12.09.2016
AcquirerTargetPrice Universal Health ServicesCambian Adult Services Group$479 million U.S. HealthWorksTwin Cities Occupational Health and RehabilitationN/A Envision Healthcare HoldingsAlabama Neonatal Medicine, P.C.N/A H2-Pharma, LLC15 Mayne Pharma productsN/A U.S. Anesthesia PartnersAnesthesia Consultants... Read More »Universal Health Makes Another U.K. Purchase
We’ve seen a lot of companies divesting non-core assets lately. Sometimes the reason is regulatory approval purposes, and other times the company simply wants to focus exclusively on a different business unit. In the latter case, Cambian Group plc (LSE: CMBN) is looking to expand its children services unit. Cambian Group provides specialist behavioral health services to adults and children in the United Kingdom. In December it announced it is divesting its adult services division, Cambian Adult Services Group. The division, which provides care to adults with mental health disorders, intellectual disabilities, autism, personality disorder and acquired brain conditions, consists of 81... Read More »The Biggest Deals of 2016
It’s been a busy year for healthcare deal making. As of December 2, the combined total spending was $239.1 billion, going to finance 1,419 transactions. That’s 40% behind the $400 billion spent in all of 2015, but just 7% behind last year’s deal volume of 1,520 deals. Thirty-six deals of $1.0 billion or higher have been announced to date in 2016, with a current total of $184.2 billion. These deals comprise 77% of spending so far, and no doubt there will be a few more before New Year’s Eve. By comparison, 2015 ended with a combined total spending of $400.6 billion on 1,520 transactions. Fifty-two of those transactions reported spending of $1.0 billion or higher, for... Read More »What Will the 115th Congress Do?
The ACA Will Be Repealed. It’s the Replacement That’s Tricky. Donald Trump has transitioned from presidential candidate to president-elect, and has nominated conservative Republican Rep. Tom Price, MD (R-GA) to oversee the Department of Health and Human Services. In the same announcement, healthcare consultant Seema Verma, with ties to Vice President-elect Mike Pence, was nominated to oversee the Centers for Medicare and Medicaid Services (CMS). The House and Senate each have Republican majorities, although the Senate’s is slim, at 52 to 48, and not filibuster-proof. The House is 241 to 194. “Repeal and replace” the Affordable Care Act (ACA) is the first order... Read More »Schedule a demo
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