Health Care Deal News, April 27, 2015 -- Nonprofit vs. For-profit Hospital Trends, 2005 to 2014

 

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Week ending April 24, 2015: 

Recent Health Care M&A Deals

Acquirer

Target Price
Biotechnology    
Roche License to immune-oncology drug $25 million
Celgene Corporation Collaboration on MEDI4736 $450 million
Astellas Pharma, Inc T cell research collaboration N/A
Hospitals    
National Surgical Healthcare Optim Healthcare N/A
Penn Medicine Lancaster General Health Merger

 

 

MedImmune Parcels Out an Investgational Blood Cancer Candidate

Last week MedImmune Ltd., the biotech arm of AstraZeneca plc (NYSE: AZN), announced two placements for its investigational compound, MEDI4736. The first announcement was with Juno Therapeutics Inc. (NASDAQ: JUNO), which signed an non-exclusive agreement to test its own investigational CD19-directed chimeric antigen receptor (CAR) T cell candidates with MedImmune’s programmed cell death ligand 1 (PD-L1) immune check point inhibitor, MEDI4736, aiming for a combination therapy. No financial details were disclosed on that, but the next day, MedImmune announced a deal with a Swiss subsidiary of Celgene Corp. (NASDAQ: CELG), worth an upfront payment of $450 million from Celgene, to investigate MEDI4736’s adequacy as a combination therapy with Celgene’s pipeline. Other assets could become part of this investigation. 

 

 

Nonprofit vs.For-profit Hospital M&A Trends, 2005 to 2014  

We get a lot of requests for updates to a chart of our data that appeared in the New York Times in August 2013. The accompanying story was about the growing consolidation of for-profit and not-for-profit systems. This week, we oblige our readers with an update to that data. And while for-profit consolidation was all the rage in the summer of 2013, it’s the fall-out from that wave of consolidation that is driving the smaller deals in 2014 and into 2015. 

 

For-Profit vs. Not-For-Profit Hospital Buyers
Source: The Health Care M&A Information Source, April 24, 2015

 

NorthStar Retires $640 Million to 15 CCRCs

Fountains Senior Living Holdings LLC is selling 15 continuing care retirement communities (CCRCs) in 11 states. NorthStar Healthcare Income, Inc., a public, non-traded REIT, has plunked down $640 million for the portfolio, which consists of six entrance-fee and nine rental CCRCs, total 3,637 units. Watermark Retirement Communities will continue as the day-to-day operator of the CCRCs. The deal is expected to close around June 1, at which time NorthStar will lease the entrance fee properties to affiliates of The Freshwater Group Inc., pursuant to a master net lease. The rental properties will be held under a RIDEA structure, with NorthStar owning 97% and Freshwater owning 3%.

 

UCHealth Invests in 12 Colorado Urgent Care Centers 

Adeptus Health, the largest and oldest network of freestanding emergency room facilities in the country, is selling a majority stake in all 12 of its Colorado facilities, and two more under construction. The buyer, University of Colorado Health System, plans to rebrand them as UCHealth ER. Adeptus operates more than 60 ERs in affluent areas of Arizona, Colorado and Texas, which treat patients who have commercial insurance. Free-standing ERs don’t have to accept Medicare or Medicaid, and thus, 85% of Adeptus’ revenue comes from commercial pay plans.  Under the partnership, UCHealth will hold a majority stake in Adeptus' freestanding emergency rooms in Colorado. The centers will integrate UCHealth's electronic medical record system later this year.........................Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

 

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