Stat of the Week: ‘Other Services’ Drops 19% in Q3:17

Stat of the Week: ‘Other Services’ Drops 19% in Q3:17

by | Dec 1, 2017 8:40 pm | Other Services

Investors have flocked to the “Other Services” sector this year, as its ancillary nature keeps the companies that comprise it largely outside the purview of reimbursement regulations and other stroke-of-the-pen sectors. The 42 transactions announced in this sector in the third quarter represent a 19% decrease from the previous quarter, and a 32% decrease compared with the year-earlier quarter.  Deal volume accounted for 22% of the 192 deals announced in the past 12 months. The “Other Services” category covers products and services related to human health care, but in an ancillary way, such as contract research organizations, ambulatory surgery centers, institutional and... Read More »
CRO Deals Pile Up, and So Do the Multiples

CRO Deals Pile Up, and So Do the Multiples

by | Sep 21, 2017 8:10 pm | CRO, Other Services

After 34 announced transactions in 2017, the news that one contract research organization (CRO) bought another CRO is downright yawn-inducing. This space is undergoing rapid consolidation, no question. Before this week, those 34 deals had a combined total of approximately $20.9 billion. Add another deal, and another $950 million, and the market just got a tad smaller. Catalent, Inc. (NYSE: CTLT) announced the 35th deal in this sector on September 19. Its target, Indiana-based Cook Pharmica LLC, is a biologics-focused contract development and manufacturing organization (CDMO) with capabilities across biologics development, clinical and commercial cell culture manufacturing,... Read More »

Summer Heat Sinks Deal Making in July

by | Aug 3, 2017 4:09 pm | Healthcare Market Updates

Deal makers took a break in July, judging by the lower deal volume and lower deal value posted in our preliminary data for the month. Compared with the previous month, deal volume dropped 20%, to 100 transactions, and deal value fell 49%, to $8.7 billion. Third quarters are typically slower for mergers and acquisitions, although there have been a few exceptions. In 2015, a record 411 deals were announced in Q3, which was 17% better than the same quarter in 2014, and 10% better than the third quarter in 2016. With little more than one month into Q3:17, we’ve logged 106 transactions. Not exactly a strong pace, but that could change. At this writing, the Senate Republicans failed to get the... Read More »

LabCorp Lands a Global CRO

by | Aug 3, 2017 2:17 pm | CRO, Private Equity

In late July, Laboratory Corp. of America Holdings (NYSE: LH) announced the 6th CRO deal to surpass the $1 billion mark this year. The $1.2 billion deal for Chiltern is its third announced transaction this year, having acquired Mount Sinai’s Clinical Outreach Laboratories (January) and Pathology Associates Medical Laboratories, LLC (February). Despite activity in the Laboratory, MRI & Dialysis sector, LabCorp was on the hunt for a CRO target all year, but with little luck. Back in February, it was rumored that LabCorp was looking to buy Pharmaceutical Product Development, LLC for $8 billion. PPD ended up going to Hellman & Friedman LLC, a long time... Read More »