Cigna Bids $67 Billion to Stay in the Race

Cigna Bids $67 Billion to Stay in the Race

Cigna (NYSE: CI) is buying Express Scripts Holdings (NYSE: ESRX) for $67 billion, including debt. Some company was going to buy it, we just weren’t sure who. The deal follows the announcement of the $77 billion CVS Health/Aetna (NYSE: CVS/AET) deal and the $4.9 billion Optum/DaVita Medical Group (NYSE: UNH/DVA) hook-up in December 2017. That’s when the word “disruption” became the top-ranked meme in U.S. healthcare. We’ll grant that CVS’s move into managed care signals a change in business-as-usual. But Optum’s deal for DaVita’s medical group didn’t break new ground. Optum has long been known as a voracious acquirer of physician... Read More »

Not Your Neighborhood Pharmacy

Some healthcare sectors have benefited more than others from demographic trends, the prevalence of chronic illnesses, and an abundance of drug pipelines. However, one subsector of health care services may really start cashing in. According to the 22nd Edition of The Health Care Services Acquisition Report, in 2011, there were only 6 specialty pharma acquisitions. By 2014 and 2015, there were 11 and 14, respectively. Specialty pharmacies have the resources to handle the challenging prescriptions that retail pharmacies do not. These prescriptions are generally expensive, and, according to CVS Health (NYSE: CVS), the average cost to payers and patients for a specialty medication is $3,000 per... Read More »

Second Quarter Health Care M&A Spending Tanks

It’s still early yet, but we can say with confidence that the second quarter of 2015 doesn’t hold a candle to last year’s second quarter, at least dollar-wise. Last year, deal volume and value hit all-time highs for all previous Q2s, coming in at 325 deals and $135.8 billion in spending on those deals. This year, deal volume was fairly steady at 312 (remember, these are preliminary figures for Q2:15) but deal value plummeted 60% to $54.2 billion. We’ll have more details in the July issue of Health Care M&A News, but in the meantime, here are the biggest deals of Q2:15.  Read More »