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 »

Top Deals in June 2015 Aren’t So Big

Healthcare M&A in June 2015 hasn’t been dead slow, but it certainly hasn’t kept pace with previous months’ totals. With 83 deals and $14.8 billion in spending, June 2015 lags far behind June 2014’s 120 transactions and $59.2 billion in spending. That said, we’re writing this on the day the U.S. Supreme Court found for the defendant (the Obama administration) in King v. Burwell, which means there could be a few very large deals announced between now and next week—particularly in the managed care sector, where the Big Five health insurers have already made plans to consolidate into the Big Three (see last week’s story in Health Care Deal News). For now, here are the five biggest deals... Read More »

Allergan Adds Kythera to Smooth Its Profile

Allergan plc (NYSE: AGN), formerly known as Actavis plc, wasted no time in acquiring another publicly traded company. Last week, Allergan picked up Kythera Biopharmaceuticals, Inc. (NASDAQ: KYTH) for $2.1 billion, payable 80% in cash and 20% in new AGN shares issued to KYTH shareholders. Kythera’s only marketed product is Kybella™, an injectable drug that is the first and only approved, non-surgical treatment for double chin. The acquisition is expected to be breakeven in 2016 and accretive thereafter. Actavis, er, Allergan remains committed to de-levering to below 3.5x debt to Adjusted EBITDA by the end of the first quarter of 2016. Read More »

Kythera Biopharma Goes Bald

Kythera Biopharmaceuticals (NASDAQ: KYTH), a clinical stage biopharma with a penchant for novel prescription products for the aesthetic medical market, entered into separate license agreements with Actellion Pharmceuticals Ltd. and the University of Pennsylvania last month. Actelion is selling the rights to setipiprant, a clinical-stage oral antagonist to the prostaglandin D2 receptor. Under the agreement with UPenn, Kythera acquired exclusive worldwide rights to certain patents covering the use of PGD2 receptor antagonists to treat hair loss. Not a very sexy-sounding way to look sexier, but it just might work. Read More »