Health Care Deal News, December 9, 2013 - As Pharmaceutical Companies Slash Their R&D Budgets Biotechs are Profiting, What a Difference a Year Didn’t Make, We’re Seeing More and More Interest in Behavioral Health Care

 

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December 9, 2013 Issue:

 

Recent Health Care M&A Deals

Behavioral Health Care

   

Acquirer

Target

Price

Accelera Innovations, Inc.

Behavorial Health Care Associates, Ltd.

$4.5 million

Biotechnology

   

Acquirer

Target

Price

Celgene Corporation

Rights to Anti-Cancer Therapeutics

$155 million

E-Health

   

Acquirer

Target

Price

Healthix

The Brooklyn Health Information Exchange

Merger

Laboratories, MRI and Dialysis

   

Acquirer

Target

Price

Ultrasound Now

Diagnostic Healthcare

Merger

Medical Devices

   

Acquirer

Target

Price

HeartWare International

CircuLite, Inc.

$30 million

 

Technology Deal of the Week
As pharmaceutical companies slash their R&D budgets, biotechs are profiting. Last week, all three major deals in the Biotechnology sector were for the rights to specific therapies. The largest was Celgene’s (NASDAQ: CELG) $155 million collaboration with OncoMed Pharmaceuticals (NASDAQ: OMED) to develop and commercialize up to six anti-cancer stem cell product candidates. If successful, Celgene gets an exclusive option on OncoMed’s most advanced clinical candidate, demcizumab, which is currently in Phase 1b studies.....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
What a difference a year didn’t make. That’s what it looks like, comparing health care M&A in November 2013 with deals announced a year ago. Both months posted a total of 88 deals. The only difference is that the Services side had fewer deals and the Technology side had more than the year before. Deal volume is a more reliable measure of the market’s strength than deal value, but we can’t help but note that the November 2013 total hit $18.5 billion, compared with just $4.7 billion a year earlier. Now that’s robust. 

 

Health Care Deals by Sector, Nov. 2013 vs. Nov. 2012

 

 

11/2013

11/2012

 

Sector

Deals

Deals

Change

Services

 

 

 

Behavioral Health Care

1

3

-66.7%

Home Health & Hospice

6

3

100.0%

Hospitals

5

9

-44.4%

Labs, MRI & Dialysis

1

4

-75.0%

Long-Term Care

17

17

0.0%

Managed Care

2

3

-33.3%

Physician Medical Groups

7

6

16.7%

Rehabilitation

1

1

0.0%

Other

6

11

-45.5%

Services subtotal

46

57

-19.3%

Technology

 

 

 

Biotechnology

12

6

100.0%

eHealth

11

7

57.1%

Medical Devices

7

11

-36.4%

Pharmaceuticals

12

7

71.4%

Technology subtotal

42

31

35.5%

Grand total

88

88

0.0%

Source: The Health Care M&A News, December 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

 

Services Deal of the Week
We’re seeing more and more interest in Behavioral Health Care. Last week Accelera Innovations, Inc. announced its $4.5 million acquisition of Behavioral Health Care Associates, Ltd. of Schaumburg, Illinois. BHCA will be operated by Accelera Healthcare Management Service Organization. BCHA provides in-house psychiatric evaluations, medication management, comprehensive lab services and billing, practice management and administrative services to doctors and other clinicians...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

Early-stage funding may be hard to come by in the Medical Devices space, but the Biotech crowd just rolls on. One Series B financing for $22 million caught our attention thanks to the company name, PaxVax Inc., and its company description. It does the usual development and commercializing of vaccines against infectious diseases, but “in a socially responsible manner.” Its lead drug candidate, PXVX0200, is a single-dose oral cholera vaccine that has just begun Phase 3 clinical trials in the U.S., Australia and Canada, and has been granted Fast Track status by the FDA. The financing was led by Ignition Growth and joined by another investor, Ignition Ventures, as well as new investors including Blue Haven Initiative.... 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.

 

Healthcare M&A Markets, Trends, Opportunities, Covered at iiBIG’s Annual Forum
Join senior-level healthcare finance executives, entrepreneurs, and investors for iiBIG’s 6th Annual Investment and M&A Opportunities in Healthcare conference, scheduled for January 27-28, 2014 at the Music City Center in Nashville, Tennessee. This year conference will cover latest in state of the healthcare M&A markets today and beyond 2014; private investing; roll-ups and mergers in the clinical research sector; middle market financing trends; the role of technology in healthcare M&A; investment opportunities and challenges in medicinal marijuana; distressed M&A opportunities; payer/provider convergence – implications of the trend toward IDNs (Integrated Delivery Networks); valuations, regulatory compliance, due diligence and more; and the “Healthcare Entrepreneur Roundtable” – growing through acquisitions and strategic partnerships. For more information, visit http://www.iibig.com/HealthcareMA or contact info@iibig.com.

 

11th Annual World Health Care Congress (WHCC), April 7 -9, 2014, National Harbor, MD
The 11th Annual World Health Care Congress (WHCC), taking place April 7 -9, 2014 in National Harbor, MD (just outside of Washington, DC) convenes decision makers from all sectors of health care with the shared goal of improving quality, outcomes, and access while reducing costs. The nation's leading organizations rely on WHCC as their annual meeting place for the discussions, collaborations, and strategies that catalyze change in the health care industry. For more information or to register, please visit www.worldhealthcarecongress.com or call 800-767-9499. Mention promo code: KBJ779 and save $200 off your registration fee.

 

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