April 2018 Healthcare Deals Explode

April 2018 Healthcare Deals Explode

by | May 4, 2018 3:44 pm | Healthcare Market Updates | 0 comments

Boom! That was April 2018’s M&A results breaking the sound barrier. With 167 transactions, the monthly deal total (almost) blew away the record for deals in a single month. The current record is now January 2017, with 178 transactions. With time, as more deals come to light, April 2018 may be the new champion. Deal volume was 21% higher than the 138 transactions reported in March 2018, and up 55% compared with April 2017’s 108 transactions. The Long-Term Care sector was a major force behind the surge in deal volume. A record 46 deals were reported, representing a 92% increase over March’s anemic 24 deals, and a 130% gain over the 20 deals reported a year earlier.... Read More »

PE Firms Team Up to Buy CROs

by | Jun 9, 2017 7:09 pm | CRO, Private Equity | 0 comments

The contract research organization (CRO) industry continues to consolidate at a rapid pace in response to growing demand from pharmaceutical and biotechnology companies. But pharma and biotech serve as the customers in this industry, not the acquirers. Nearly all the buyers in 2017 are other CRO companies that are seeking scale. Private equity is also joining the party, accounting for the remaining portion of deals, including the largest disclosed deal this year. Last month, INC Research Holdings (NASDAQ: INCR) paid $4.6 billion for inVentiv Health, a CRO that also counts Advent International and Thomas H. Lee Partners as equal equity holders. The firms will retain their stakes following... Read More »

CRO Consolidation Tops $13 Billion in 2017

by | May 12, 2017 2:40 pm | CRO, Other Services, Private Equity | 0 comments

2017 is the year of the CRO deals. In the first four-and-a-half months of 2017, 17 deals targeting a CRO (contract research organization) have been announced, with disclosed spending of approximately $13.8 billion. Just a few weeks after Hellman & Friedman LLC took over the majority stake in Pharmaceutical Product Development, LLC (PPD) for $9.05 billion in April, the CRO market witnessed another mega deal. On May 11, 2017, INC Research Holdings, Inc. (NASDAQ: INCR) a contract research organization providing Phase 1 to Phase 4 clinical development services, announced that it merged with privately-held inVentiv Health in an all-stock transaction valued at $4.6 billion. The combination... Read More »

Rehabilitation Attracted Private Equity and REITs in 2016

by | Dec 21, 2016 9:57 pm | Private Equity, Rehabilitation | 0 comments

The Rehabilitation sector is still fairly fragmented, but consolidation is coming. Some 40 deals have been announced in 2016, a 21% increase compared with 2015’s then-record of 33 deals. This year saw a ramp-up in the number of deals announced by REITs and private equity firms, too. Spending in this sector is generally lower than other sectors, because so many transactions are made by local or regional buyers who want to keep deals private. Many targets are privately owned, and sellers don’t wish to disclose prices, either. In 2016, deal value was approximately $712 million, down 11% compared with 2015’s $799 million. For this sector, those figures represent healthy... Read More »