Healthcare M&A for 2006

FOR IMMEDIATE RELEASE
Stephen M. Monroe, Partner
Sanford B. Steever, Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com
Health Care Merger And Acquisition Activity Soars In Second Quarter 2006, According To Irving Levin Associates, Inc.
NORWALK, CT – July 13, 2006 – According to a new Report from Irving Levin Associates, a total of 263 mergers and acquisitions were announced in the health care industry during the second quarter of 2006. This figure marks an 11% increase over the 236 deals announced in the prior quarter, Q1:06. Based on preliminary figures, a total of $66.9 billion was committed to fund this M&A activity.

The Health Care M&A Market Second Quarter 2006
Dollar Amounts By Sector*
Sector
Dollar Amount
First Quarter 2006
Percent of  Quarter
Long-Term Care
$     8,645,300,000
13%
Hospitals
532,200,000
1%
Managed Care
417,500,000
<1%
Behavioral Health Care
250,000,000
<1%
Labs, MRI, Dialysis
202,800,000
<1%
Physician Medical Groups
115,800,000
<1%
Rehabilitation
101,500,000
<1%
Home Health Care
30,200,000
<1%
Other Services
1,239,100,000
2%
   Services subtotal
$   11,534,400,000
17%
 
 
 
Medical Devices
$   28,077,500,000
42%
Pharmaceuticals
   22,372,700,000
33%
Biotechnology
4,740,000,000
7%
e-Health
228,200,000
<1%
   Technology subtotal
$   55,418,400,000
83%
 
 
 
Total health care
$   66,952,800,000
83%
*Preliminary figures
“As expected, the majority of M&A dollars—83% in the second quarter—were spent in the four health care technology sectors we cover: Biotechnology, e-Health, Medical Devices and Pharmaceuticals,” observed Stephen M. Monroe, Managing Editor at Irving Levin Associates. “The quarter produced 13 billion-dollar deals, at the remarkable rate of one each week, worth a combined total of $54.2 billion, or 81% of the total amount committed during the quarter. Three were in the Long-Term Care sector, with the remaining 10 in the technology segment, with six in Medical Devices, two in Biotechnology and two in Pharmaceuticals.”
 “The Medical Device sector witnessed concerted M&A activity among diagnostics-oriented businesses while the Pharmaceutical sector saw strong activity targeting consumer health and generic drug businesses,” observed Sanford Steever, Ph.D., editor of the Report.
The Health Care M&A Market Q2:06 Deal Volume By Sector
Sector
Q2:06
Deals*
Q1:06
Deals
%Change
Q2:05
Deals
%Change
Services:

 

 

Long-Term Care
22
34
-35%
32
-31%
Home Health
17
11
+54%
16
+6%
Hospitals
13
10
+30%
14
-7%
Laboratories, MRI, Dialysis
9
12
-25%
14
-36%
Physician Medical Groups
8
14
-43%
8
0%
Managed Care
6
9
-33%
6
0%
Behavioral Health
4
3
+33%
5
-20%
Rehabilitation
1
1
0%
5
-80%
Other
36
34
+6%
29
+24%
Services Subtotal
116
128
-9%
129
-10%

Technology:

 

 

Medical Devices
46
35
+31%
37
+24%
Pharmaceuticals
39
37
+5%
25
+56%
Biotechnology
33
24
+38%
26
+27%
e-Health
29
12
+142%
11
+164%
Technology Subtotal
147
108
+36%
99
+48%

 

 


Grand Total
263
236
+11%
228
+15%
*Preliminary figures
The first half of 2006 has seen 500 deals announced in the health care industry worth a combined total of $108.1 billion. “With a robust first half of the year, we feel confident that 2006 will be among the most active years ever recorded in health care M&A. While the technology segment will lead this, facility-based industries in the services segment will also make a significant contribution,” stated Mr. Monroe.
For more information on The Health Care M&A Report, or for a subscription to any Irving Levin publication, call 800-248-1668.  Irving Levin Associates, Inc., established in 1948, has its headquarters in Norwalk, CT and is online at www.levinassociates.com.  This privately held corporation publishes research reports and newsletters, and maintains merger and acquisition databases, on the health care and senior housing markets.
Click here to get more information on any of our Publications.
Back to top