Health Care Deals Cratered in February 2017

Health Care Deals Cratered in February 2017

After a very strong performance in January 2017 with 160 transactions announced, February’s deal volume collapsed 45%, to just 88 transactions (see chart below). Compared with the same month a year ago, it’s was only down 30%, to 125 deals. Don’t forget, 2016 was a leap year, so an additional six more deals snuck into last year’s results on February 29. What difference that doesn’t make for this year’s results.  Yes, it’s all because of the uncertainty around the fate of the Affordable Care Act. Many of the services sectors will be effected by what becomes of Medicaid, whether states will receive block grants, or some other solution. At least two... Read More »

Perrigo Lets Go of Tysabri Royalties

What goes around comes around. It doesn’t seem that long ago that the Dublin-based drug firm Elan Corporation plc was fighting off the hostile advances of Royalty Pharma. It was July 2013, in fact, when Elan agreed to be acquired by Perrigo (NYSE: PRGO) for $8.6 billion. To refresh the memory, Elan was a biotech company whose portfolio included royalties from Tysabri®, a multiple sclerosis treatment, and a neuropsychiatric pipeline with near-term value creation potential.  Early February 2013, Elan sold half of its rights to Tysabri to Biogen Idec, now known as Biogen Inc. (NASDAQ: BIIB), for $3.25 billion. At the time, the terms called for $3.25 billion upfront cash plus 12% of... Read More »