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The dollar value of the deals
announced in the first quarter 2002 dropped to $7.9 billion from $27.4
billion in the fourth quarter 2001, but was equal to the $7.9 billion spent
during the third quarter 2001. Of
the first quarter 2002 total expenditure, approximately 70% was in the
health care technology segment, with the Pharmaceutical and Biotechnology
sectors accounting for half of every dollar spent. Hospitals, Laboratories
and Long-Term Care combined accounted for 15% of the total amount spent
during first quarter 2002.
"As an indication of where investor
interest currently lies, the three largest deals, all with price tags
between $500 million and $1 billion, were in the Biotechnology and
Pharmaceutical sectors," stated Sanford B. Steever, Ph.D., editor of
the Report. By contrast, the
largest transaction in the services segment, with a price of $500 million,
took place in the Laboratories sector.
"We expect that, going forward, the
Biotechnology, Medical Device and Pharmaceutical sectors will continue to
dominate the health care M&A market in terms of deal volume and the
ability to secure financing," noted Stephen M. Monroe, Partner.
In addition, "This activity, along with a steady stream of
acquisitions in the Hospital and Long-Term Care sectors, should give rise to
an annual deal volume of between 800 and 850 deals in the health care
M&A market," continued Mr. Monroe.
For more information on the Health Care M&A Report, or for a subscription to any Irving
Levin publications, call 800-248-1668.
Irving Levin Associates, Inc., established in 1948, has headquarters
in New Canaan, 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 or to order any of our
Publications.
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