Aetna Sells Medicare Part D Biz to WellCare

Even before federal and state officials made the demand, Aetna Inc. (NYSE: AET) agreed to divest its standalone Medicare Part D business to WellCare Health Plans (NYSE: WCG) for an undisclosed price. The deal was struck to help deflect objections to Aetna’s takeover by CVS Health (NYSE: CVS), which was announced on December 3, 2017. […]

Amazon Scoops Up PillPack for $1 Billion

Amazon (NASDAQ: AMZN) finally took the plunge into the pharmaceutical market with its approximately $1 billion acquisition of five-year-old PillPack, an online pharmacy startup based in Manchester, New Hampshire. Financial terms weren’t disclosed in the deal’s announcement, but on June 28, the day of the announcement, The Wall Street Journal quoted sources on the price. In April […]

New Enterprise Associates Adds Paladina Health to Its Portfolio

New Enterprise Associates (NEA) has a strong healthcare portfolio, filled with digital health, population health management and physician practices. On June 6, the private equity firm added another physician group, Paladina Health, for a reported $100 million. It’s not surprising that the bidding was “highly competitive,” according to a CNBC source, and that there were […]

A Bubble in Healthcare Services? What Bubble?

Bubble talk is back. Anyone who’s bought a healthcare services company in 2018 has hit a hard reality. Depending on the sector, multiples are the highest they’ve ever been, crazy or insane. We attended the ACG New York chapter’s annual healthcare deal conference, titled “Health Care Deals 2018: Where Have We Been and Where Are […]

Fred’s Exits Specialty Pharmacy, CVS Gains

Fred’s Inc. (NASDAQ: FRED) has had second thoughts about the specialty pharmacy business. Three years ago, in March 2015, the retailer acquired Reeves-Sain Drug Store, Inc., a retail pharmacy with a single location in Murfreesboro, Tennessee. Included in the $66 million deal was EntrustRx Specialty Pharmacy, a direct-to-consumer operation with three locations in Mississippi and […]

Q1:18 Results: Healthcare Goes Retail

First, the easy news. Deal volume in the first quarter of 2018 was on par with the previous quarter’s total of 380 deals. Preliminary data show 378 transactions were announced in the first quarter, making for a decline of 1% that will likely be erased as more deal activity is uncovered. Compared with the first […]

Managed Care Sector Had a Big Q4:17

The fourth quarter of 2017 will be remembered for some time to come, thanks to the game-changing deal announced between pharmacy/retailer CVS Health and Aetna, one of the largest managed care companies in the country. That was only one deal, of course, and there were actually 10 transactions announced in Q4:17. Fourth quarter deal volume […]

money sack one hundred dollar bills
money sack one hundred dollar bills

2017 Biggest Healthcare Deals by Sector

2017 was another big year for billion-dollar healthcare transactions. Among the deals that disclosed prices, 44 topped the billion-dollar mark, for a total of approximately $263.1 billion. Although that number seems high, there were 50 billion-dollar deals announced in 2015, although those totaled a slightly lower $240.1 billion. 2016 posted lower totals for both the […]

Q4:17 Redefined Healthcare M&A

Despite all the big deals announced in December, the fourth quarter of 2017 wasn’t one for the record books. Merger and acquisition activity was busy, but compared with the previous quarter and the same period in 2016, the pace wasn’t frenetic. Our preliminary data shows 357 transactions were announced in Q4:17, down a slight 4% […]