Health Care M&A Dollar Volume
Skyrockets In The First Quarter Of 2004 According To New Report From Irving
Levin Associates, Inc.
NEW CANAAN, CT –April 27, 2004
– During the first quarter of 2004, M&A deal volume in the health
care industry dropped 14% from the 234 deals in the fourth quarter of 2003
and 12% from the 229 deals in the first quarter of 2003. The dollar size of
deals surged dramatically, however. Based on revealed prices, a total of
$92.3 billion was spent to finance the first quarter’s 201 deals, nearly
equal with the $92.8 billion spent in all of 2003 to finance that year’s 923
transactions. |
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Of the $92.3 billion committed in Q1:04, one deal,
Sanofi-Synthelabo SA’s proposed acquisition of Aventis SA, now valued at $65
billion, accounts for 70% of the total amount committed in the first quarter
to finance health care M&A activity. This deal, which creates the world’s
third largest pharmaceutical company, will likely cast its shadow over the
market for the remainder of the year.
Three sectors of the health care industry, pharmaceuticals,
medical devices and biotechnology, accounted for 52% of all health care M&A
deals announced and 94% of all dollars committed in the first quarter. “The
continuing focus on health care technology reflects investors’ desire to
capitalize on the potential returns of biotech, pharma and medical device
companies,” stated Stephen M. Monroe, managing editor at Irving Levin
Associates, Inc., which publishes The Health Care M&A Report. “The
on-going shift in demographics led by babyboomers will drive additional
demand for health care services which will lead in turn to increased
investor interest and M&A activity in various sectors of health care
services,” added Sanford Steever, Ph.D., editor of the Report.
Recent changes to the Medicare law, enacted last December,
have already begun to impact M&A activity in the managed care sector, which
showed increases in deal volume over both the prior and the year-ago
quarters. “With greater reimbursement flowing into the managed care sector,
many companies will return to the Medicare Advantage market,” commented Mr.
Monroe. “Further consolidation will occur in this fragmented sector as
companies attempt to gain efficiencies and control costs through mergers and
acquisitions.”
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
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