Health Care Deal News, July 14, 2014 - Salix Pharma Buys Cosmo Technologies, Second Quarter Healthcare Deals Explode, China’s CITIC Capital Buys U.S. Dental Firm DDS LAB, Boston Scientific Invests $15 Million in Mvalve

 

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July 14, 2014 Issue:

 

Recent Health Care M&A Deals
Managed Care
   
Acquirer
Target
Price
Merger
Medical Devices
   
ECP
$13 million
$35 million
Pharmaceuticals
   
$30 million
N/A                             

 

Health Care Deal News Premium Edition

 

Salix Pharmaceuticals Goes for a Tax Inversion
Salix Pharmaceuticals (NASDAQ: SLXP), currently based in Raleigh, North Carolina, has made a deal with the Italian drug maker Cosmo Pharmaceuticals S.p.A. (SIX: COPN) to acquire its subsidiary, Cosmo Technologies Ltd. for about $2.7 billion. Both Salix and Cosmo Tech are focused on treating gastrointestinal diseases, but because Cosmo is based in Ireland, Salix gains a new domicile, and a cheaper corporate tax rate. Under the terms of the agreement, Salix will become a wholly owned subsidiary of Cosmo Tech, which will change its name to Salix Pharmaceuticals plc............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.

 

Second Quarter Healthcare Deals Explode
The second quarter of 2014 is already one for the record books. Healthcare deals totaled 297, which isn’t a record (Q2:11 had 336 deals). Healthcare dollar volume topped $135 billion – and that is a record for any second quarter. It’s also a 171% increase over Q1:14 dollar volume, of $49.9 billion. Deal volume in the technology sector surged 31%, to 143 deals, while the services sector stayed flat, at 154 deals. July has started out quickly, too, so we could be in for a blistering summer in the healthcare market.   
 

Deal Volume, Q2:14 vs. Q1: 14

 

Q2:14

Q1:14

 

Sector

Deals

Deals

% change

Services

Behavioral Health Care

7

5

40.0%

Home Health & Hospice

14

15

-6.7%

Hospitals

9

13

-30.8%

Labs, MRI & Dialysis

7

11

-36.4%

Long-Term Care

60

63

-4.8%

Managed Care

8

5

60.0%

Physician Medical Groups

15

13

15.4%

Rehabilitation

6

2

200%

Other     

28

28

0%

Services subtotal

154

155

-0.6%

Technology

Biotechnology

34

26

30.8%

eHealth

28

21

33.3%

Medical Devices

31

27

14.8%

Pharmaceuticals

50

35

42.9%

Technology subtotal

143

109

31.2%

Grand total

297

264

12.5%

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

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China’s CITIC Capital Buys U.S. Dental Firm DDS LAB
CITIC Capital Partners, the Hong Kong-based private equity arm of CITIC Capital Holdings Ltd., acquired DDS LAB LLC, a U.S. dental laboratory in Tampa, Florida. Terms were not disclosed, but CITIC Capital’s preferred deal size is between $30 million and $50 million, according to Reuters. CITIC Capital partners with California-based buyout firm Blue Sea Capital and DDS management to acquire the business. Moelis & Co. was financial advisor to DDS..........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.

 

Boston Scientific Invests $15 Million in Mvalve
Boston Scientific Corporation (NYSE: BSX) invested $15 million in Israeli medical device maker, Mvalve, and obtained an option to acquire the company for $200 million, according to Globes, the online Israeli business media. The attraction for BSX is Mvalve’s still-in-development product to repair leak in the mitral heart valve..........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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