The Market for PBMs Slows in 2016

Magellan Health, Inc. (NASDAQ: MGLN), a healthcare management company specializing in special populations and pharmacy benefits management, has just acquired privately held Veridicus Holdings, LLC. The sellers are Gauge Capital, company management and other unnamed backers. Based in Salt Lake City, Veridicus is a pharmacy benefit management (PBM) company that uses proprietary software to integrate pharmacy, medical and lab data to drive targeted interventions for complex patient populations. The $74.5 million deal gives Magellan access to Veridicus’ 225,000 members. Veridicus also owns and operates a fully licensed insurance company which serves members enrolled in the Medicare Part D... Read More »

CROs are back in style for M&A

Contract research organizations (CROs) are changing hands again, all over the world. Since 2010, we’ve recorded 63 transactions in total, with six announced in 2016 already. That’s a strong showing compared with five CRO deals for all of 2015, but not nearly on pace to surpass the 19 deals posted in 2014. Total combined spending, based on the 14 deals with prices disclosed, was $6.5 billion. The largest by far, at $3.9 billion, was for Pharmaceutical Product Development, acquired by then-privately held The Carlyle Group (now NASDAQ: CG). A majority of the deals (63%) were made by other CROs, compared with 16% by private equity firms, the second largest acquirer category.... Read More »
LifeCare Hospitals Moves Into Home Health

LifeCare Hospitals Moves Into Home Health

LifeCare Hospitals, part of LifeCare Holdings LLC, specializes in treating chronically ill and medically complex patients in post-acute settings. This week, it announced the acquisition of Haven Home Health, LLC, a multi-location home healthcare provider in the greater Dallas-Fort Worth metro area. The acquisition is part of LifeCare’s strategic expansion in the post acute market. In May 2011, the company paid $117.5 million for five long-term acute care hospitals owned by HealthSouth Corporation (NYSE: HLS). LifeCare Holdings itself was acquired by The Carlyle Group in July 2005 for $555 million, from GTCR Golder Rauner.  In December 2012, the private equity firm sold LifeCare to... Read More »