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 »
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 represents a 38% share of the 26 deals announced in the previous 12 months, and a 150% increase over the same quarter in 2016. Source: HealthCareMandA.com, January 2018 Two of the 10 deals disclosed prices in the fourth quarter, for nearly $80.6 billion, the highest ever recorded in this sector, or several others. The total represents 95% of the $84.7... Read More »Deal of the Week: CVS/Aetna
The biggest deal of the year (so far) was announced on Sunday, December 3, no doubt timed to give media outlets a fresh story to begin the week. By now you know that CVS Health Corp. (NYSE: CVS) and managed care giant Aetna (NYSE: AET) plan to merge in mid-2018, to the tune of $77 billion (including Aetna’s debt). The deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and stock: $145 in cash and $62 in stock. Besides being the largest deal announced in 2017 (since 2015, in fact), the unusual combination portends major changes in the U.S. healthcare market. Or not. Skeptics abound regarding... Read More »
Deal of the Week: McKesson/RxCrossroads
The largest deal announced in a very sluggish week for healthcare announcements was McKesson Corp.’s (NYSE: MCK) $735 million acquisition of RxCrossroads from CVS Health Corp. (NYSE: CVS). RxCrossroads provides a range of specialty distribution, pharmacy and patient support to biopharmaceutical manufacturers. CVS acquired it in 2015 as part of its $12.7 billion deal for Omnicare Inc., which specialized in managing pharmaceutical care in long-term care and assisted living facilities. Omnicare paid $235 million for RxCrossroads in 2005, when it reported annualized revenue of $46 million. For McKesson, RxCrossroads will help it to capitalize on what the coming boom in the specialty... Read More »Schedule a demo
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