Medical Device Sector Is Most Active in H1:17

The Medical Device sector has been humming. Granted, it comprises a huge range of things, from hip and knee joints to cardiovascular devices. Since 2016, 176 deals have been announced, and $102 billion has been committed based on 73 disclosed prices. Among the 176 deals, 14 target companies specialize in cardiovascular devices, 14 specialize in orthopedic and spine devices, 10 specialize in aesthetic devices each, and eight specialize in vascular devices, to name a few. The most recent deal, on July 10, was of a company that covered a very interesting niche of medical devices. ThermoGenesis Corp., a wholly-owned subsidiary of Cesca Therapeutics Inc., (NASDAQ: KOOL) acquired privately held... Read More »

Laboratories, MRI & Dialysis Deals Dropped in 2016

Deal volume settled down in 2016, following a very busy 2015 in the Laboratories, MRI & Dialysis sector. The 41 deals recorded represent a 21% decline compared with the 52 announced in 2015. Laboratories have had to adapt as hospitals and health systems have merged or closed in recent years. Some labs have evolved to offer coordinated diagnostics: offering tests that give on-the-spot diagnoses, handling bills and lab data from several sources and providers as an aid to accountable care organizations, and focusing on the patient experience to ensure repeat business. At the same time, deal value surged in 2016, up 166% year-over-year to $11.6 billion. Two multi-billion-dollar deals... Read More »

Medical Device Deals Stay Strong in 2016

Medical Devices is finishing the year on a high note. In fact, as of December 29, 2016, deal volume reached 113 transactions, equal to 2015’s total. Deal value topped off at $61.3 billion, a 111% increase from last year’s total of $29.1 billion. However, one deal accounted for 50% of 2016’s total, and that is Abbott’s (NYSE: ABT) $30.7 billion purchase of St. Jude Medical, Inc. (NYSE: STJ), a developer, manufacturer and distributor of cardiovascular medical devices for cardiac rhythm management. When that mega deal is subtracted, we get a dollar value of $30.6 billion, still a 5% climb since last year. A handful of acquirers made a name for themselves this year, such as Stryker Corporation... Read More »

Abbott’s $30.7B Deal Boosts Medical Device M&A

Medical device deals are back in fashion. In the first four months of 2016, 41 deals were announced in this sector, compared with just 30 for the comparable time period in 2015. Spending on deals in this sector has already hit $42.7 billion, compared with $5.7 billion in the first four months of 2015. The largest by far this year is Abbott’s (NYSE: ABT) announcement on April 28 that it would spend $30.7 billion to acquire Minneapolis-based St. Jude Medical, Inc. (NYSE: SJM). St. Jude shareholders will receive $46.75 in cash and 0.8708 shares of Abbott common stock, representing total consideration of approximately $85 per share, and a transaction equity value of $25 billion. Add in... Read More »

Point-of-Care Diagnostics Company Commands $5.8 Billion

Abbott Laboratories (NYSE: ABT) may be known for its branded generic pharmaceuticals, but it just boosted its diagnostics division with the $5.8 billion acquisition of Alere Inc. (NYSE: ALR). Alere provides point-of care diagnostics and services for the infectious disease, cardiometabolic disease, and toxicology in the United States and worldwide. Abbott will pay $56 per common share, representing a 51% premium to Alere’s closing price on Friday, January 28, 2016. Abbott will also assume or refinance Alere’s $2.6 billion debt. Back in July 2015, Alere paid $60 million for US Diagnostics. It made a larger, $270 million deal for eScreen, Inc. in March 2012. The combination of... Read More »