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. The $77 billion price for that deal consists of $69 billion in cash and stock, and Aetna’s debt of approximately $8 billion. This transaction with WellCare is subject to the completion of that deal, which CVS expects will close in the early part of the fourth quarter of 2018. Aetna’s standalone Medicare Part D business includes more than 2.2... Read More »
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 2018, Walmart (NYSE: WMT) was reported to be in discussions with PillPack, and targeting a price under $1 billion, according to CNBC. Amazon was also said to be holding discussions with the company at the time. PillPack is an online pharmacy that delivers medications in pre-sorted dose packaging and... Read More »
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 other private equity firms in the process. What is interesting is the nod that “a large retailers and pharmacy chain” was also in the hunt. Hello, CVS Health (NYSE: CVS)? Paladina Health, a subsidiary of DaVita Inc. (NYSE: DVA), is a primary care practice with 53 clinics in 10 states. It... Read More »
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 We Going…” (ellipsis theirs) on a recent May morning. With a title like that, and a market as it is now, the question “Who’s investing in health care these days?” elicited the response, “Who isn’t investing in health care now?” The universe of investors has broadened to include Amazon (NASDAQ:... Read More »Schedule a demo
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