HEALTH CARE M&A MARKET REACHES HIGHEST LEVEL
SINCE THE FOURTH QUARTER OF 2000
According to Irving Levin Associates, Inc.
NEW CANAAN, CT -July 26, 2002 - A total of 238 deals were announced
in 13 sectors of the health care industry, a 15% increase over the 207
deals announced in the first quarter of 2002 and a 12% increase over the
213 deals of the second quarter of 2001. In perspective, the health care
M&A market has reached its highest level since the fourth quarter of
2000. |
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The dollar value of the deals announced in the second
quarter 2002 rose 96% to $15.6 billion from $7.9 billion in the first
quarter 2002, with health care services capturing $9.6 million, or 62% of
the total. Reversing the trend of the past several quarters, the health care
services segment accounted for a greater share of both the deal volume and
the dollars expended in the second quarter than did the health care
technology segment.
"With new reimbursement protocols in place, several
sectors of the health care services industry, such as Home Health, have
turned their attention and energies to growing through acquisition. And with
double-digit premium increases almost assured, companies in the Managed Care
sector will also be able to focus their resources on getting deals
done," stated Sanford B.
Steever, Ph.D., editor of the Report
"Despite the large share that the health care services
industry captured this quarter, in the near term, the M&A market is
likely to be dominated by technology companies, particularly the
Pharmaceutical sector," predicted Stephen M. Monroe, Partner.
In addition, "The
recently proposed acquisition of Pharmacia by Pfizer for $60 billion,
dwarfing the $23.5 billion already spent in the first half of the year on
445 deals, will overshadow the market this year and, perhaps, spawn some
other mega-deals," stated 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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