Deal of the Week: CVS/Aetna

by | Dec 8, 2017 8:09 pm | Other Services

The biggest deal of the year (so far) was announced on Sunday, December 3, no doubt timed to give media outlets a fresh story to begin the week. By now you know that CVS Health Corp. (NYSE: CVS) and managed care giant Aetna (NYSE: AET) plan to merge in mid-2018, to the tune of $77 billion (including Aetna’s debt). The deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and stock: $145 in cash and $62 in stock. Besides being the largest deal announced in 2017 (since 2015, in fact), the unusual combination portends major changes in the U.S. healthcare market. Or not. Skeptics abound regarding... Read More »
Stat of the Week: November Deal Volume -30%

Stat of the Week: November Deal Volume -30%

by | Dec 8, 2017 7:50 pm | Healthcare Market Updates

Perhaps it was the anticipation of the Thanksgiving holiday, or the holiday itself, that caused the sudden slump in deal volume. Too much turkey, too little focus on finishing up those transactions? Or we could blame the Republicans’ mad dash to pass their tax “reform” legislation before the end of the year. Both houses of Congress have passed separate versions of the bill, and are presently reconciling those into one, for a final vote. How that will look at the other end of the sausage machine is anyone’s guess, but once the bill is passed, we may see the floodgates open on pent-up demand in the more global sectors, such as Medical Devices and Pharmaceuticals. This is preliminary data, of... Read More »
CVS, Aetna Lead a Potential Big-Deal Parade

CVS, Aetna Lead a Potential Big-Deal Parade

by | Dec 4, 2017 12:23 am | Managed Care, Pharmaceuticals, Physician Medical Groups, Private Equity

The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion (-49% vs. $38.6 billion in Q4:16). But late on December 3, CVS Health (NYSE: CVS) and managed care giant Aetna (NYSE: AET) announced their $69 billion merger. More mega-deals are in the offing. Possibly. The CVS/Aetna deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and... Read More »
Deal of the Week: McKesson/RxCrossroads

Deal of the Week: McKesson/RxCrossroads

by | Nov 10, 2017 5:56 pm | Biotechnology, Managed Care, Other Services, Pharmaceuticals

The largest deal announced in a very sluggish week for healthcare announcements was McKesson Corp.’s (NYSE: MCK) $735 million acquisition of RxCrossroads from CVS Health Corp. (NYSE: CVS). RxCrossroads provides a range of specialty distribution, pharmacy and patient support to biopharmaceutical manufacturers. CVS acquired it in 2015 as part of its $12.7 billion deal for Omnicare Inc., which specialized in managing pharmaceutical care in long-term care and assisted living facilities. Omnicare paid $235 million for RxCrossroads in 2005, when it reported annualized revenue of $46 million. For McKesson, RxCrossroads will help it to capitalize on what the coming boom in the specialty... Read More »