Health Care Deal News, June 9, 2014 - Biotech Startups are Still Big Attractions for Pharmaceutical Companies, Drugs Deals Have Been Big Business this Year

 

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June 9, 2014 Issue:

 

Recent Health Care M&A Deals
Behavioral Health Care
   
Acquirer
Target
Price
$660 million
Biotechnology
   
N/A
$125 million
$200 million
E-Health
   
The Rehab Documentation Company
N/A
N/A                              

 

Technology Deal of the Week
Biotech startups are still big attractions for pharmaceutical companies. Last week Teva Pharmaceuticals Industries Ltd. (NYSE: TEVA) acquired Labrys Biologics, Inc., a development stage biotech company focused on treatments for chronic migraine and episodic migraine. Its most promising product candidate is LBR-1, whose (potential) peak sales Teva estimates at $2 to $3 billion. The price was $200 million in cash upfront, and up to $625 million in contingent payments upon achievement of certain pre-launch milestones. ..........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
Drugs deals have been big business this year. Of the 66 deals we’ve captured so far, 39 have announced prices, for a running total of $80.7 billion. It’s only June, and we’ve already seen 10 billion-dollar-plus deals in the Pharmaceutical sector alone. Forest Labs (NYSE: FRX), which was the acquirer in two of the current top 10, is the target in the largest pharma deal announced to date. Mallinckrodt plc (NYSE: MCK), which spun off from Covidien plc (NYSE: COV) a year ago, is on this list twice, too. This could be a very hot summer. 

Top 10 Pharmaceutical Transactions in 2014, through June 6

 

Acquirer

Target

Price

Actavis plc

Forest Laboratories

$25.0 billion

Novartis Corporation

GlaxoSmithKline’s oncology business

$16.0 billion

Bayer AG

Merck’s OTC business

$14.2 billion

Mallinckrodt plc

Questcor Pharmaceuticals, Inc.

$5.6 billion

Sun Pharma

Ranbaxy Laboratories Ltd.

$4.0 billion

Abbott Laboratories

CFR Pharmaceuticals SA

$3.3 billion

Forest Laboratories

Aptalis Pharma

$2.9 billion

Nestle SA

Valeant’s dermatology assets

$1.4 billion

Mallinckrodt plc

Cadence Pharmaceuticals, Inc.

$1.3 billion

Forest Laboratories

Furiex Pharmaceuticals, Inc.

$1.1 billion

Source: The Health Care M&A News, June 2014

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Services Deal of the Week
Two months ago American Realty Capital Healthcare Trust (NYSE: HCT) went public. Last week, it agreed to be acquired for $2.6 billion by Ventas, Inc. (NYSE: VTR), the largest health care REIT in the country. The price includes stock, cash and assumed debt. ARC shareholders will receive the equivalent of $11.33 per share, consisting of either 0.1688 Ventas common shares or $11.33 cash for each share of ARC they own, with a maximum of 10% eligible to receive cash. Centerview Parners and UBS Investment Bank represented Ventas. JP Morgan Securities represented ARC. .........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 Internet of Things really refers to Things Connected to the Internet, and the time is coming when not only your car and your clothing falls into that category, but your medicines, too. Last week, Proteus Digital Health, maker of wearable and ingestible devices, raised $120 million from new investors for just such a system. In fact, its Ingestible Sensor™ device has already received a CE mark in Europe and FDA market clearance in the United States. Proteus backers include The Carlyle Group, Essex Woodlands, Kaiser Permanente, Medtronic, Novartis, Otsuka, Oracle, ON Semiconductor and others.......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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Deals have been made. The 2014 Health Care Services Acquisition Report contains private deals in this market that are frequently too small to make it into the financial press. Order by June 30th and get a complimentary $150 of transactions in our online health care M&A database. Now that’s a deal! Go to http://www.levinassociates.com/landing/har20order or call 800-248-1668 to order today.

 

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