Health Care Deal News, March 25, 2013 - As a Health Care Sector, eHealth is a Robust M&A Segment, Obagi Medical Products, Inc. (NASDAQ: OMPI) Agreed to Merge with Valeant Pharmaceuticals International, Inc

 

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March 25, 2013 Issue:

 

Recent Health Care M&A Deals

MEDICAL DEVICES

Acquirer

Target

Price

Cynosure, Inc.

Palomar Medical Technologies

$294 million

PHARMACEUTICALS

Acquirer

Target

Price

Galena Biopharma, Inc.

Abstral (fentanyl) Sublingual Tablets

$15 million

NPS Pharmaceuticals, Inc.

Rights to Teduglutide and Human Parathyroid Hormone 1-84

$50 million

Valeant Pharmaceuticals International Inc.

Obagi Medical Products, Inc.

$360 million

PHYSICIAN MEDICAL GROUPS

Acquirer

Target

Price

IHA

Michigan Multispecialty Physicians

Merger

 

Service Deal of the Week
This is an update to a deal announced last September, when Chicago-based Health Care Service Corporation, the nation’s fourth largest insurer, agreed to buy Blue Cross Blue Shield of Montana for $17.6 million. That price didn’t sit well with the state’s Insurance Commission and finally, HCSC came back with an offer that more than doubled its first one, bringing the purchase total to $40.6 million. Montana State Insurance Commissioner Monica Lindeen is expected to issue a recommendation on the purchase price by April 19....Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

Charted Territory
As a health care sector, eHealth is a robust M&A segment. Last year we counted 103 announced deals for all manner of healthcare IT products, from apps to EHRs. The 24 deals that came with prices totaled nearly $5.3 billion. This year has gotten off to a busy start, with nearly 20 announced deals. We’ll be looking at the eHealth sector in the April issue of The Health Care M&A Monthly, so stay tuned.

 

Top 10 eHealth Transactions of 2012

Target

Acquirer

Price

Sunquest Information Systems

Roper Industries

$1,415,000,000

M*Modal Inc.

One Equity Partners

$1,100,000,000

Decision Resources Group

Piramal Healthcare Ltd.

$635,000,000

maxIT Healthcare Holdings

SAIC, Inc.

$473,000,000

MediConnect Global, Inc.

Verisk Analytics, Inc.

$348,600,000

Healthcare Benefit Solutions business

Lightyear Capital LLC

$335,000,000

Transcend Services

Nuance Communications, Inc.

$300,000,000

Mediware Information Systems

Thoma Bravo

$195,000,000

Apollo Health Street

Sutherland Global Services

$184,100,000

Liquent, Inc.

PAREXEL International Corp.

$72,000,000

Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today

 

Technology Deal of the Week
Obagi Medical Products, Inc. (NASDAQ: OMPI), a specialty pharmaceutical company specializing in prescription-strength skin care systems, agreed to merge with Valeant Pharmaceuticals International, Inc. (NYSE: VRX). Valeant will acquire all of the outstanding common stock of Obagi for $19.75 per share in cash, a 42% premium to Obagi’s closing price on Thursday, March 14, 2013. The deal values Obagi at approximately $360 million. Both parties expect the merger to take place in the second quarter of 2013....Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

In the Pipeline
Basis Science announced it has received a new infusion of cash, $11.5 million worth, including funds from author Deepak Chopra, tech analyst and angel investor Esther Dyson. The round was led by Mayfield Fund and joined by DCM and Norwest Venture Partners. Funds will go toward eliminating the current backlog of orders the company has for its wristband tracker, which piled up quickly after Popular Science hailed the wristwatch-cum-biofeedback monitor as the “only tracker worth wearing.” Chopra and Dyson have joined Basis’s board of advisors....Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

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Physician compensation… private practice value drivers… legislation – the unique factors affecting healthcare entity finance and valuation are abundant and certainly in the spotlight in the current political environment.  Business Valuation Resources, LLC (BVR) – through a special arrangement with Irving Levin Associates – is pleased to put expert guidance at your fingertips.  BVR’s Healthcare Industry Finance and Value Resource Center offers a solution for every challenge in the healthcare industry valuation realm.  Whether you’re looking for insight into valuation methodology, case law precedent, compensation analysis or value benchmarking, BVR has the answer for you.  Visit the Healthcare Industry Finance and Value Resource Center now to peruse our library.  While you’re there, be sure to sign up for the free bi-weekly ezine, the Healthcare Value Wire a quick and easy way to keep up with rapid developments in the complex area of healthcare industry finance and valuation.

 

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