Medical Device Sector Is Most Active in H1:17

The Medical Device sector has been humming. Granted, it comprises a huge range of things, from hip and knee joints to cardiovascular devices. Since 2016, 176 deals have been announced, and $102 billion has been committed based on 73 disclosed prices. Among the 176 deals, 14 target companies specialize in cardiovascular devices, 14 specialize in orthopedic and spine devices, 10 specialize in aesthetic devices each, and eight specialize in vascular devices, to name a few. The most recent deal, on July 10, was of a company that covered a very interesting niche of medical devices. ThermoGenesis Corp., a wholly-owned subsidiary of Cesca Therapeutics Inc., (NASDAQ: KOOL) acquired privately held... Read More »

Q1:17 Biotechnology Deals Keep Climbing

Biotechnology deal activity has climbed steadily over the past five quarters. The sector reached 62 transactions in Q1:17, an increase of 13% over the previous quarter and up 94% year-over-year. The total is 31% of the 203 deals announced in the previous 12 months. M&A in this sector will remain active for years to come, as pharmaceutical companies that have abandoned their own R&D turn to buying up smaller biotechs with promising clinical-stage compounds. The 21st Century Cures Act also benefits this sector, with its billions of dollars in financing for both the “Cancer Moonshot” and the BRAIN Initiative. In the first quarter, 20 of the 62 transactions involved the purchase of an... Read More »

Medical Device Deals Spring Back to Life

The Medical Device sector ended the first quarter of 2017 with 22 announced deals, almost even with Q4:16’s total of 23 deals, and down 29% from the year-ago quarter. But the lull may not last into the second quarter.  As of April 10, 2017, three medical device deals have been announced in Q2:17. On April 4th, Becton, Dickinson and Company (NYSE: BDX) acquired privately held Caesarea Medical Electronics (CME) for an undisclosed price. CME designs, manufactures and markets a range of infusion and syringe pumps, as well as related accessories and disposable administration sets for both home care and hospital settings. The acquisition expands BD’s infusion portfolio to include... Read More »

Where Have All the Big Pharma Deals Gone?

The Pharmaceutical sector has experienced a dearth of big deals so far this year. In Q1:16, 40 transactions with pharmaceutical targets were announced, for a total of $46.2 billion. In the first quarter of 2017 (through March 28), only 24 deals (-40%) for pharmaceutical targets have been announced, with a combined total of $10.1 billion (-78%). One factor behind the drop in deals is obvious. The sector came under legislative and consumer scrutiny during the presidential election in 2016, as candidates Hillary Clinton and Donald Trump each decried high prices charged by drug manufacturers, and each vowed to do something about it once elected. President Trump repeated his campaign promise to... 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 »