Health Care Deal News, February 16, 2015 - January Health Care M&A Heated Up


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Week ending February 13, 2015: 


Recent Health Care M&A Deals


Target Price
Valeant Pharmaceuticals International, Inc. Dendreon Corporation $400 million
GlaxoSmithKilne plc Glyco Vaxyn AG $190 million
Other Services    
Rite Aid Corporation EnvisionRx $2.0 billion
Advanced Dermatology and Cosmetic Surgery Deland Dermatology & Surgery N/A
HealthStream, Inc. HealthLine Systems, Inc. $88 million
TPG Aptalis Pharmaceutical Technologies N/A



Salix Pharmaceuticals Back in Play 

Salix Pharmaceuticals (NASDAQ: SLPX), which is still shaken by inventory issues and a resulting management shakeup, is the reported target of two pharma giants, Valeant Pharmaceuticals (NYSE: VRX) and Shire (NASDAQ: SHPG). Both were reportedly readying bids late last week, speculated to be around $10 billion. Shire just committed $5.2 billion for NPS Pharmaceuticals (NASDAQ: NPSP) last month, following its $4.2 billion acquisition of ViroPharma Inc. in November 2013. Salix’ focus on gastrointestinal drugs would fit well with Shire’s own GI line, but Valeant’s deep pockets—and frustration at losing Allergan (NYSE: AGN) to Actavis (NYSE: ACT) last October—may be the deciding factor.



January Health Care M&A

January is typically colder than December, but health care M&A activity actually heated up in January 2015. We counted 119 transactions, which was 24% higher than the 96 posted in December 2014. Health care services contributed 62% of the combined total, even though the Biotechnology sector had the largest deal count.


January 2015 Health Care M&A, by Sector



% Share
Behavioral Health Care 2 2%
Home Health & Hospice 11 9%
Hospitals 10 8%
Labs, MRI & Dialysis 2 2%
Long-Term Care 19 16%
Managed Care 9 8%
Physician Medical Groups 8 7%
Rehabilitaion 2 2%
Other Services 11 9%
Services subtotal 74 62%
Biotechnology 22 18%
eHealth 10 8%
Medical Devices 4 3%
Pharmaceuticals 9 8%
Technology subtotal 45 38%
Grand total 119 100%

Source: The Health Care M&A Information Source, February 13, 2015



TPG Churns Its Health Care Portfolio

The biggest deal last week, at $2 billion, was Rite Aid Corporation’s (NYSE: RAD) acquisition of EnvisionRx, the pharmacy benefit management company owned by private equity giant TPG. Before the week was out, TPG paid an undisclosed amount for Aptalis Pharmaceutical Technologies, the pharmaceutical outsourcing and R&D unit known as Pharmactech. The target’s specializes in areas such as taste-masking and customized drug release and can support products from formulation through scale-up and commercial scale manufacturing. TPG promises more acquisitions are coming to build out the business. Stay tuned.



VCs Love Life Sciences

A new report from PricewaterhouseCoopers and the National Venture Capital Association confirms what you already suspected. Venture capital firms parked $8.6 billion in the life sciences sector in 2014, with $6 billion of that going into biotech ventures, up 29% over 2013. Despite their snow troubles this winter, Boston raked in the biggest share, with $959 million for 32 deals in the fourth quarter of 2014 alone. Sunny San Francisco was second, raking in $839 million. Guess bad weather keeps some people in the lab longer.................Click here for a free trial to The Health Care M&A Information Source and download the current issue today.


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