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