Health Care Deal News, June 3, 2013 - The Largest Deal to Take Place on the Services Side was Set in the South Pacific, The Medical Devices Sector has Taken a Huge Hit When it Comes to Mergers and Acquisitions

 

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June 3, 2013 Issue:

 

Recent Health Care M&A Deals

Biotechnology

Acquirer

Target

Price

 GlaxoSmithKline

 Okairos AG

 $325 million

Hospitals

Acquirer

Target

Price

 Montefiore Health System

 Sound Shore Health System

 N/A

Medical Devices

Acquirer

Target

Price

 Uscom Limited

Pulsecor Limited

 $1 million

Pharmaceuticals

Acquirer

Target

Price

 AstaZeneca

 Omthera Pharmaceuticals

 $323 million

 Valeant Pharmaceuticals International, Inc.

 Bausch + Lomb Holdings, Inc.

 $8.7 billion

 

Service Deal of the Week
The largest deal to take place on the services side was set in the South Pacific. EBOS Group Limited (NZX: EBO), based in Christchurch, New Zealand, announced it would pay $1.1 billion for privately held Symbion of Melbourne, Australia. EBOS is New Zealand’s largest diversified pharmaceutical and medical products group, focused on wholesaling, logistics, sales and marketing. Symbion, formerly part of Zuellig Healthcare Holdings Australia Pty Ltd, is a pharmaceutical wholesaler and distributors with operations throughout the continent. The acquisition price includes $865 million ($367 million in cash and $498 million in stock) and the assumption of $230 million in debt. EBOS is looking to grow its Australian business, and expects to close the sale on July 5, 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.

 

Charted Territory
The Medical Devices sector has taken a huge hit when it comes to mergers and acquisitions in 2013. For the first five months of the year, deal volume was down 53.6%, to just 37 transactions announced in the category, compared with the 78 announced in the same period in 2012. Deal value has plummeted 77.6% from January through May, clocking in at nearly $2.77 billion. For the same period a year ago, Medical Devices deal value was a stunning $12.37 billion, thanks to three billion-dollar transactions: Hologic Inc. (NASDAQ: HOLX) buying Gen-Probe, Inc. (NASDAQ: GPRO) for $3.72 billion; Agilent Technologies (NYSE: A) buying Dako Denmark A/S for $2.2 billion, and Boston Scientific Corp. (NYSE: BSX) buying Cameron Health for $1.35 billion. So far this year, only one Medical Device deal has topped $1 billion: Bayer Healthcare LLC’s (DE: BAYG) acquisition of Conceptus, Inc. (NASDAQ: CPTS) in April for $1.1 billion.

 

Medical Device M&A Transactions, January thru May, 2012 vs. 2013

 

Jan. – May 2012

Jan. – May 2013

% change

Deal volume

78

37

-52.6%

Deal value

$12.37 billion

$2.77 billion

-77.6%

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
Where to start? The technology sector—and pharmaceuticals, in particular—exploded last week as another multi-billion-dollar deal and several multi-million-dollar ones were announced. The largest deal was Valeant Pharmaceuticals International Inc.’s (NYSE: VRX) successful bid for Bausch + Lomb Holdings Inc. Private equity owner Warburg Pincus accepted $8.7 billion for the company known most prominently for its vision care products, but which also encompasses pharmaceuticals and surgical products. B+L had been on the block since last December, when Warburg Pincus hired Goldman Sachs Group to explore a sale. Several companies took a look at the books, but the rumored asking price of at least $10 billion proved too rich for their liking. Now, B+L will become a division of Valeant and its existing ophthalmology businesses will be integrated into the B+L division. The transaction is expected to be immediately accretive and Valeant anticipates achieving a cost savings by the end of 2014. The acquisition is expected to close by the end of the third 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
The eyes have it, even though venture capital funding for the life sciences—the biotechnology and medical devices sectors—declined in Q1:13. Ophthotech Corporation raised $175 million to finance the pivotal Phase 3 clinical program for Fovista™, an anti-platelet-derived growth factor, in combination with anti-VEGF therapy for the treatment of neovascular age-related macular degeneration (wet AMD). The multi-national trial is expected to begin in the third quarter of 2013 and enroll nearly 1,900 patients. The financing consists of $125 million from Novo A/S, in exchange for royalties on Fovista sales. The remaining $50 million comes in the form of a Series C preferred stock financing from Novo A/S and current investors in Ophthotech. It comes in the form of three tranches, the first of which has closed.....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.

 

Upcoming Interactive M&A Webcast:
Physician Medical Groups: Buying, Selling and Valuing
Thursday, June 20, 2013, 1:00 pm ET            
What drives this market? Where and when should you buy or sell? Who’s buying what and what influences the valuation of physician medical groups? Find out more from our expert panel: Aytan Dahukey (Moderator), Counsel in the Corporate Practice Group, Sheppard Mullin Richter & Hampton; Bill Gil, President and Chief Executive Officer, Facey Medical Foundation; Kenneth Hawkins, Senior VP, Acquisitions & Development, Community Health Systems; Jason Ruchaber, Partner, HealthCare Appraisers, Inc.; Will Tao, Senior Associate, Healthcare Mergers & Acquisitions, Provident Healthcare Partners, LLC.
Go to http://www.levinassociates.com/conferences/1306b-online-conference or call 800-248-1668 to register.

 

NEW - The Health Care Services Acquisition Report, 19th Edition
Deals have been made. The 2013 Health Care Services Acquisition Report contains private deals in this market that are too small to make it into the financial press. Go to http://www.levinassociates.com/landing/har19order or call 800-248-1668 to order today!

 

 
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