Health Care Deal News, December 1, 2014 - 10 Biggest Deals of November 2014


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Week ending November 28, 2014:


Recent Health Care M&A Deals


Target Price
BioMarin Pharmaceutical Inc. Prosensa Holding N.V. $680 million
Merck Rights to Ebola vaccine N/A
Home Health & Hospice    

HealthSouth Corporation

Encompass Home Health and Hospice

$750 million


Endo International plc Rights to testosterone gel $25 million



Cystic Fibrosis Foundation Gets $3.3 Billion  

Royalty Pharma, which acquires royalty interests in marketed and late-stage biopharmaceutical products, announced it would pay $3.3 billion cash to Cystic Fibrosis Foundation Therapeutics (CFFT), an affiliate of the Cystic Fibrosis Foundation. In return, Royalty Pharma gains the royalties on Vertex Pharmaceuticals’ cystic fibrosis treatments that are owned by CFFT. Royalty owns interests in 40 products, including Humira, Remicade, Rituxan, Lyrica, Prezista, Atripla, Truvada, Complera, Stribild, Neupogen/Neulasta, Januvia/Janumet, Nesina, Tradjenta, Onglyza/Kombiglyze, Tecfidera and Imbruvica. BofA Merrill Lynch served as financial advisor to Royalty Pharma in this transaction and Goodwin Procter acted a legal advisor. 



The Top 10 Deals in November

November is shaping up to be another rip-roaring month, by our preliminary totals. As of November 25, we've recorded approximately 67 health care transactions, which isn't a show-stopper. But thanks to Actavis (NYSE: ACT) and Allergan (NYSE: AGN), deal value is closing in on $90 billion. Even without that deal, the month's total would be about $23 billion, which beats most of the monthly totals posted in 2013. Here's to a busy December, and we don't mean holiday shopping. 


10 Biggest Health Care Deals in November 2014

Acquirer Target Price
Actavis plc Allergan, Inc.  $66,000,000,000
Laboratory Corp. of America Covance Inc.  $5,600,000,000
Perrigo Company plc Omega Pharma NV $4,500,000,000
Royalty Pharma Royalties on cystic fibrosis drugs $3,300,000,000
EQT VI Siemens Audiology Solutions $2,670,000,000
Advent International Corp. Kremers Urban Pharmaceuticals $1,525,000,000
Formation Capital, LLC Extendicare U.S. portfolio $870,000,000
Pfizer Inc.  Collaboration on Merck cancer drug $850,000,000
Formation Capital, LLC The NHP Group $761,000,000
HealthSouth Corporation Encompass Home Health & Hospice $750,000,000

Source: The Health Care M&A Information Source, November 25, 2014



HealthSouth Extends into Home Health & Hospice

Encompass Home Health and Hospice, owned by the private equity firm Cressey & Company LP, is usually the acquirer when it comes to home health & hospice deals. Last week, however, it was the target of a $750 million acquisition by HealthSouth Corporation (NYSE: HLS), the nation’s largest owner and operator of inpatient rehabilitation hospitals. Dallas-based Encompass is the fifth-largest provider of Medicare-focused, skilled home health services in the United States. It operates in 140 locations across 13 states, with approximately 5,000 employees making more than 2.1 million patient visits annually. 


Blueprint Medicines Secures $50 Million in Series C Funding

Blueprint Medicines of Cambridge, Massachusetts, discovers and develops highly selective kinase inhibitors for genomically defined cancers. It recently completed a $50 million Series C financing, with the proceeds going to advance its two lead product candidates through clinical trials in 2015 and fund the continued development of its kinase discovery platform and pipeline. The Series C round was led by Partner Fund Management and included additional new investors, Wellington Management Company, RA Capital, Tavistock Life Sciences, Perceptive Advisors, Sabby Capital, Cowen Investments and Redmile Group. The company’s existing shareholders—Biotechnology Value Fund, Casdin Capital, Fidelity Biosciences, Nextech Invest and Third Rock Ventures—also participated in the round............Click here for a free trial to The Health Care M&A Information Source and download the current issue today.


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