Q2:18 Health Care Deal Volume and Value Explode

Q2:18 Health Care Deal Volume and Value Explode

by | Jul 6, 2018 3:02 pm | Healthcare Market Updates

What a quarter it was. Even with preliminary data, the numbers of deals and dollars spent in the second quarter of 2018 are impressive. The quarter began with a bang in April (176 deals), settled in May (136 deals) and slowed in June (122 deals). That still adds up to 432 transactions reported in the second quarter, up 1% compared with the first quarter, and 13% better than the same quarter in 2017. The Services sectors accounted for 59% of the deal volume in Q1:18, five percentage points lower than in the previous quarter, and three percentage points lower than Q2:17. The Long-Term Care sector, which turned in 47 deals in April alone, posted gains of 28% compared with Q1:18 and 33%... Read More »
June 2018 Deal Volume Settles into Summer Mode

June 2018 Deal Volume Settles into Summer Mode

by | Jul 6, 2018 12:29 pm | Healthcare Market Updates

June was a gentle month for deal making. As the first month of summer, preliminary data shows a slight drop in deal volume for the month, compared with a busier May. Investors seem to be taking the adage “Buy in May and go away” seriously. With a preliminary total of 122 transactions made public in June 2018, deal volume was down 10% compared with May’s 135 deals. Deal volume compared to June 2017 was off 8%. Long-Term Care deals, which typically make up the greatest share of monthly volume, were down to just 22 transactions (18% share) compared with 35 in the previous month. That’s the way the second quarter played out in this sector, with April deal volume spiking... Read More »

Takeda Takes on Shire for $81.5 Billion

by | May 10, 2018 12:13 pm | Biotechnology, Pharmaceuticals

Big Pharma deals are back, more than ever. After six weeks of offers, refusals, talks and more, Japanese drug giant Takeda Pharmaceutical Company Limited (OTCQB: TKPYY) reached an agreement to acquire Shire plc (NASDAQ: SHPG) for $81.5 billion, including assumed debt of $19.54 billion. It’s the largest healthcare deal announced ever, unless you count Pfizer’s (NYSE: PFE) hostile stalking of AstraZeneca (NYSE: AZN) through much of 2014, with bids reported to be around $118 billion. And we don’t. Looking back over past pharmaceutical deals (that closed), this takes the record from Pfizer, which announced its acquisition of Wyeth, Inc. for approximately $78.5 billion, including $10.5 billion... Read More »
Deal of the Week: Takeda/TiGenix

Deal of the Week: Takeda/TiGenix

by | Jan 5, 2018 4:12 pm | Pharmaceuticals

Japanese pharmaceutical giant Takeda Pharmaceutical Company Limited (TSE: 4502) declared its intention to acquire 100% of the voting rights it doesn’t already own in the Dutch biotechnology company TiGenix NV (NASDAQ: TIG). Takeda is offering $627 million in cash, representing an 82% premium over TiGenix’s closing price prior to the date when the news of the deal broke. On January 5, 2018, the day the news broke, TIG stock shot up nearly 71%, to $40.75. TiGenix is an advanced biopharmaceutical company focused on exploiting the anti-inflammatory properties of allogeneic, or donor-derived, stem cells. Upon the acquisition, TiGenix will become a subsidiary of Takeda. The... Read More »