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April 2008
First Quarter 2008 M&A Results--
219 Deals Announced Worth $27.1 Billion
A total of 219 mergers and
acquisitions were announced in the health care industry during Q1:08. Based
on prices revealed to date, a total of $27.1 billion was spent to finance
them.
Read the issue to see an example of the kinds of deals that have been made
available to potential buyers and investors in the current, challenging
acquisition market.
The Hospital M&A Market--
New Report Shows Values Down Slightly In 2007
A new report from Irving Levin Associates analyzes the recent M&A market for
Hospitals and allied health services sectors.
Despite the departure of most financial buyers from the market, results show
that salient hospital acquisition multiples have declined only slightly from
2006 to 2007.
March 2008
Home Health Care Heats Up--
Changes To Medicare Reimbursement Prompt Sell-Off
The Home Health Care M&A market is seeing increased activity. Recent changes
to Medicare reimbursement have put more properties on the market, depressing
prices with an increased supply and attracting buyers to bargains.
Biotech Leads
Health Care M&A--
Twelve Deals Announced Worth $4.1 Billion
A total of 12 deals were announced in the
bio-technology industry worth a combined $4.1 billion. Deal making is on the
rise as companies and their pipelines mature. Collaboration and development
agreements are dominating the action.
February 2008
Spotlight On Diagnostics--
Dealmakers Targeting Diagnostic Testing Businesses
The diagnostic testing business is witnessing robust merger and acquisition
activity, spanning several sectors of health care, including Biotechnology,
Disease Management, Medical Devices and Pharmaceuticals.
Pharma Outsources
Manufacturing--
Sells Plants To Focus On Higher-Margin Activities
To concentrate on higher-margin activities,
many pharma companies are selling off proprietary manufacturing plants and
outsourcing the production of their drugs.
January 2008
Health Care M&A Results For 2007--
$226.5 Billion Committed In Second-Largest Year Ever
2007 turned out to be second only to 2006 in the size of its health care
merger and acquisition market. Based on results, a total of 1,051 deals were
announced with a combined value of $226.5 billion.
Medical Device Deals Surge--
December Saw 27 Transactions Worth $7.9 Billion
The Medical Device sector ended the year as it
began it, with a spate of deal making. December produced 27 transactions
worth a combined total of $7.9 billion.
December 2007
Generic Pharma
Consolidates--
Cross-Border Activity Grows To Access Global Markets
Generic pharma companies announced seven cross-border deals in November.
This activity involved companies based in India, Hungary and Slovenia
looking abroad to expand their market shares.
Health Care’s Big Spenders In 2007--
46 Buyers Each Spent $1.0 Billion Or More On M&A
Nearly half of all deals announced and all
dollars committed to the health care M&A market in 2007 have been made by
repeat buyers. Read the issue to see who the most active buyers are, the
sectors they are targeting and their reasons for buying.
November 2007
Health Care Acquisition Premiums--
Five-Year Study Shows Upward Trend From 2004
Examination of premiums paid in health care
transactions from January 2002 through September 2007 reveals an upward
trend since 2004.
October’s
M&A Market--
102 Deals Announced Worth $14.0 Billion
Deal volume surged to its highest monthly level ever. A total of $14.0
billion was committed to fund this robust activity.
Infusion
Therapy Attracts Investors--
Renewed Buyer Interest Driving Valuations Up
Investor enthusiasm for infusion therapy services is increasing, with
companies acquiring providers to complement their specialty pharmacy
business lines.
October 2007
Third Quarter 2007 M&A Results--
A Total Of 245 Deals Posted Worth $48.0 Billion
The third quarter of 2007 posted a total of
245 mergers and acquisitions in the health care industry, in keeping with
previous periods.
A total of $48.0 billion was committed to fund the third quarter’s M&A
activity.
The first three quarters of this year have already established 2007 as the
second-largest ever in terms of M&A dollar volume.
September’s M&A
Market--
Seventy Deals Announced Worth $5.4 Billion
September’s health care M&A market
saw the announcement of 70 transactions worth $5.4 billion.
While large private equity deals were absent from the market, strategic
buyers negotiated a healthy volume of transactions.
September 2007
Private Equity’s Role In M&A--
What Is The Impact Of Private Equity On The Market?
Speculation has suggested that the crisis in
the credit market will hobble private equity’s ability to pursue LBOs and
privatizations, and shut down dealmaking.
Read the issue to see the part that private equity has played in the health
care M&A market.
August’s Health
Care M&A Market--
Eighty-Two Deals Announced Worth $7.2 Billion
August saw 82 deals announced
in the health care industry worth a combined total of $7.2 billion.
Is the drop in dollar volume the result of the credit crisis or just a
seasonal phenomenon?
August 2007
Medical Devices Attract Big Bucks--
Strategic Buyers Move To Consolidate Diagnostics Industry
Within July’s vibrant Medical Device merger
and acquisition market, diagnostic testing companies have taken center
stage.
Read the story to see who is making the big moves and why, and who is the
next likely target.
July’s Health
Care M&A Market--
Activity Remains Robust Despite Credit Challenges
Jitters in the financial markets have recently led some to ask whether the
health care merger and acquisition market will seize up.
Placing the question in context, we discuss which factors favor continued
robust M&A activity.
July 2007
A “Perfect Storm” In Private Equity-
Points To Bull Market In M&A For The Medium Term
The confluence of several factors is creating
a perfect storm for private equity deals and dealmakers in the middle
market.
Read the issue to see what these drivers are and how private equity is
affecting the growth of the health care M&A market.
Second Quarter
2007 M&A Results
231 Deals Announced in Q2:07 Worth $59.1 Billion
The second quarter saw the announcement of 231 deals in the health care
industry worth a total of $59.1 billion.
Current indications are that 2007 will break all prior records in terms of
the dollars spent on health care mergers and acquisitions.
June 2007
Mylan Wins Merck’s Generics Unit
Pays $6.7 Billion For Global Expansion
After a months-long bidding process, Mylan
Laboratories is
paying $6.7 billion to acquire Merck’s generics business.
Completion of the deal will make Mylan the world’s fourth-largest generics
company.
The bidding process reveals as much about the losing bidders’ strategic
goals as it does about Mylan’s.
May’s M&A
Activity Strong
72 Deals Announced Worth $28.4 Billion
May saw a total of 72 mergers and acquisitions in the health care industry,
worth a total of $28.4 billion.
Year to date, the M&A market has produced 365 deals worth a combined total
of $125.0 billion in a scorching, record-setting pace.
May 2007
AstraZeneca Grabs MedImmune - $15.2
Billion Deal Is Largest Biotech Transaction Ever
In the largest biotech deal ever, AstraZeneca
diversifies into biologic medicines with the $15.2 billion acquisition of
MedImmune.
Private
Equity In The Middle Market - Private Equity Firms Continue To Find
Good Deals
Financial buyers, such as private equity firms, made a big splash in the
middle market, posting 11 deals worth a combined $3.5 billion.
April 2007
Schering-Plough Diversifies: Fred Hassan
Buys Organon BioSciences For $15.8 Billion
To diversify its earnings and expand its drug development pipeline,
Schering-Plough is buying Organon from Akzo Nobel.
First Quarter 2007 M&A Results - $73.2
Billion Committed to Health Care Dealmaking
The first quarter of 2007 posted 221 mergers and acquisitions in the health
care industry. Based on prices revealed to date, $73.2 billion was committed
to finance them.
March 2007
February’s Hospital M&A Market - Triad
Hospitals Privatized In $6.4 Billion Deal
February saw a resurgence of for-profit Hospital M&A as Triad Hospitals was
taken private by a group of private equity firms in a transaction worth $6.4
billion. Not-for-profit operators around the country are pondering whether
to stay independent or merge.
Pharma Captures Big Bucks - Ten Deals
Announced Worth A Combined $7.5 Billion
Ten Pharma deals were announced in February, totaling $7.5 billion. As
branded drugs go off patent, some are being acquired and re-marketed in
specialty niches. Big pharma continues search for drug candidates to
replenish disappearing blockbusters.
February 2007
Medical Devices Set Strong Pace -
Sector Leads Robust Consolidation In 2007
The medical device sector posted strong numbers in January’s M&A market.
Particularly noteworthy is the presence of private equity firms as buyers.
New Year’s Hospital M&A - Hospitals Realign
In The New York City Metropolitan Area
The New York City metropolitan hospital market is realigning into smaller,
regionally focused networks. Roman Catholic facilities are figuring
prominently in this transformation.
January 2007
Health Care M&A Results For 2006 - A
Record Year By The Numbers
Nearly 1,000 mergers and acquisitions were announced in the health care
industry during 2006. The $260.7 billion committed to fund this activity
represents a 59% increase over the previous record high posted in 2004.
The Orthopedics M&A Market - Will Smith &
Nephew Ultimately Join Forces With Biomet?
Smith & Nephew lost Biomet to a private equity group for $10.9 billion. Will
it become the next acquisition target? Read inside for the pros and cons.
December 2006
November’s Health Care M&A Market -
Sixty-one Deals Announced Worth A Total Of $34.2 Billion
While November’s 61 deals represent a one-fifth drop from October’s deal
volume, dollars committed to M&A activity more than doubled. With $234.7
billion committed in the first 11 months of the year, 2006 is already a
record-breaker.
Dealmaker Profile: CRC Health
Group - Subacute Behavioral Health Care’s Major Consolidator
It has been a banner year for CRC Health Group, with the company
establishing itself at the leader in subacute behavioral health care. Read
inside to see what factors stand behind the success of this industry
consolidator.
November 2006
Booming Biotech Market - Fifteen Deals Worth $7.8 Billion Announced in
October
During October witnessed a total of 15 mergers and acquisitions in the
biotech sector. The combined price for this activity was $7.8 billion.
CVS and Caremark Rx To Combine - Is This $21.0 Billion Merger A
Prescription for Success?
As we were going to press, retail drugstore giant CVS announced a merger
with lead pharmacy benefits manager Caremark Rx. Read inside to see what is
behind this $21.0 billion deal and how it may shape the future of PBM
mergers and acquisitions.
October 2006
Focus on Family Pharma
During one week in September, three European family-controlled drug
companies sold in a single week. Read inside to see what general trends and
specific factors spurred M&A activity worth $24.6 billion.
Health Care M&A Results from the Third Quarter of 2006
237 Deals Announced Worth $74.4 Billion
The third quarter of 2006 saw a total of 237 mergers and acquisitions
announced in the health care industry. Based on revealed prices, a total of
$74.4 billion was spent to finance the quarter’s M&A activity.
Interview with Eisai, Inc.
September 2006
Mylan Buys Matrix For $736 million: Buys Indian Firm
To Enter Asian and European Markets
Mylan Laboratories is expanding into Asian and European pharmaceutical
markets with its $736 million purchase of a 71.5% interest in India’s
Matrix Laboratories. This deal vertically integrates Mylan’s finished
dosage operations with Matrix’s API business, and lowers Mylan’s cost
structure.
The Month In Deals
August posted 68 mergers and acquisitions in the health care industry. Based
on revealed prices, a total of $4.0 billion was spent to fund them. Deals in
the health care technology segment captured the greatest dollar volume for
the month.
August 2006
One For the Record Book - HCA Agrees To Be Taken Private For $33 Billion
A consortium of private equity firms has been formed to take hospital
operator HCA private in a leveraged buyout worth $33 billion. Read inside to
see who may benefit from the largest hospital transaction ever announced.
The Month in Deals - July Sees 69 Deals Worth A Combined $35.5 Billion
July posted 69 mergers and acquisitions in the health care industry. Based
on revealed prices, a total of $35.5 billion was spent to fund them. Deals
in the health care services segment captured the greatest deal and dollar
volume for the month.
July 2006
Pharma Deals Target Consumer Health And Generic Drug Markets
Johnson & Johnson is paying $16.6 billion for Pfizer’s consumer health
unit. What is a strategic deal for JNJ turns out to be an opportunistic one
for Pfizer. A bidding war heats up as Barr Pharmaceuticals offers $2.3
billion for Pliva Pharmaceuticals. How much will Actavis’ interest in the
Croatian generic firm drive up the price?
The Second Quarter Health Care M&A Market
The second quarter saw 263 deals in the health care industry worth a
combined total of $65.8 billion. The first half of 2006 recorded 500 deals
worth a total of $108.1 billion.
June 2006
$12.8 Billion Deal Unites Thermo Electron and Fisher Scientific
A $12.8 billion proposal to unite Thermo Electron with Fisher Scientific
will create a powerhouse in the laboratory tools space.
May 2006
Medical Device Merger Mania
The Medical Device sector posted 14 mergers and acquisitions in April. A
total of $4.7 billion, or 59% of the month’s health care M&A funds, was
committed to finance this activity.
April 2006
March Merger Mania in Pharma - Europe Sees A Flurry of Springtime Dealmaking
In The Pharmaceutical Industry, As Bayer Leads The Pack With A $19.5 Billion
Bid for Schering AG
The European pharmaceutical market sees strong consolidation in 2006, led by
Bayer's $19.5 billion acquisition of Schering.
March 2006
Extendicare To Explore Strategic Alternatives
The Senior care operator Extendicare is exploring ways to harness the
value in the company, including a sale of all or part of its business.
Extendicare supports a valuation of just over $2 billion, but the sum of the
parts may be worth more than the whole.
February 2006
To The Winners Go The Spoils... Boston Scientific’s $27 Billion Bid for
Guidant Trumps Johnson & Johnson’s While Abbott Laboratories Lands Itself a
Strong Vascular Business
The bidding war between Boston Scientific and Johnson & Johnson for
Guidant came to an end as Boston Scientific clinched the deal with a $27
billion offer. Abbott Labs helped Boston Scientific fund the deal. For its
pains, it will get Guidant’s vascular business for $4.1 billion.
January 2006
Health Care M&A Results for The Fourth Quarter of 2005
The fourth quarter of 2005 saw 221 mergers and acquisitions announced in the
health care industry. Preliminary results indicate that $57.1 billion was
spent to fund this M&A activity.
The Year in Health Care M&A, 2005
A total of 964 mergers and acquisitions were announced in the health care
industry in 2005. Approximately $158.7 billion was committed to fund them.
Full story
December 2005
One Target, Two Buyers
In three billion-dollar deals this month, a new buyer swooped into an
existing agreement to unseat the original buyer and claim the prize for
himself. Read inside to see how this strategy played out in the three deals,
two in Medical Devices and the third in Long-Term Care.
November 2005
JNJ Cuts Offer By 15 Percent, Will Buy
Guidant For $21.5 Billion
Johnson & Johnson is now offering to buy device maker Guidant for $21.5
billion, replacing its December 2004 offer of $25.4 billion. Read inside for
some ideas on what the $4 billion difference between the two represents.
October 2005
WellPoint Parries UnitedHealth, Buying
WellChoice for $6.5 Billion
WellPoint gains market share in the New York City metropolitan area with
the $6.5 billion purchase of WellChoice.
An Interview with Reed Welch of Lane, Berry
& Co.
We interviewed Reed Welch of the investment bank Lane Berry & Co. for his
insights on two recent deals he put together.
Full story
September 2005
Novartis Offers to Buy Rest of Chiron
Corp. for $4.5 Billion
Novartis AG wants to buy the remaining interest in vaccine maker Chiron
Corp. that it does not already own. It has offered to pay $40 per share, but
Chiron’s independent board appears to be holding out for a sweeter deal.
August 2005
Teva Stays on Top of Generics With $8
Billion Purchase of Ivax
To recapture its title as the world’s biggest generic pharma company, Teva
is paying $8 billion for Ivax Corp.
July 2005
UnitedHealth Group Offers $9.2 Billion to
Buy PacifiCare
Size does seem to matter, as UnitedHealth crafts a $9.2 billion deal to
buy PacifiCare and become the country’s largest MCO.
Consolidation Spikes in the Generic
Pharmaceuticals Market
Consolidation among generic pharma companies is increasing in response to
the opportunities created as brand-name drugs lose their exclusivity.
Full Story
June 2005
Pfizer Props Its Pipeline With A $1.9
Billion Deal
After closing out the month, we learned that
pharmaceutical giant Pfizer is buying Vicuron Pharmaceuticals for $1.9
billion in a bid to replace lost revenue from drugs going off patent.
May 2005
Fresenius Clinches $4 Billion Deal To Buy Renal Care Group
Threatened with displacement from its
role as the industry’s largest provider of dialysis services, Fresenius is
paying $4 billion to buy competitor Renal Care Group. But is the
motivation strategic or financial?
April 2005
Health Care M&A Results for The First Quarter of 2005
A total of 248 mergers and
acquisitions were announced in the first quarter of 2005, the highest
level in two years. Based on revealed prices, $34.8 billion was committed
to fund this M&A activity.
March 2005
Size Does Matter: Pharmaceutical Industry Consolidation Continues
Two billion-dollar deals were
announced in the Pharmaceutical sector. In a bid to become the world’s
largest generic pharma company, Novartis is buying two related companies
for $8.4 billion. To beef up their R&D budgets, two more Japanese pharma
companies are joining forces in a deal worth $7.8 billion.
February 2005
Beverly Enterprises Is Targeted In A Deal Worth $2 Billion
A group of investors led by Formation
Capital has taken an interest in acquiring Beverly Enterprises, the
largest skilled nursing company, for $11.50 per share. Beverly’s board has
demurred so far, but can shareholders resist this $2 billion deal?
January 2005
Health Care M&A Results for The Fourth
Quarter of 2004
The fourth quarter of 2004 posted 213
mergers and acquisitions in the health care industry. Based on revealed
prices, a total of $50.7 billion was committed to finance this activity.
December 2004
Christmas Comes Early as Johnson &
Johnson Buys Device Maker Guidant for $25.4 Billion
In a bid to become a major player in
the cardiovascular devices market and to prop up sagging revenue, Johnson
& Johnson is paying $25.4 billion in cash and stock for Guidant.
November 2004
Private Equity Firms Target
Long-Term Acute Care Hospitals
Two operators of long-term acute care
hospitals, or LTACS, agreed to be bought by private equity firms, but for
very different reasons. Read inside to see what is driving this market.
October 2004
Health Care M&A Results for The Third
Quarter of 2004
The third quarter produced a total of
218 mergers and acquisitions in the health care industry. Based on
revealed prices, a total of $21 billion was committed to fund this
activity.
September 2004
Deal Volume Remains Steady, But Dollar
Amounts Drop
While health care M&A deal volume
remained steady for September, tallying 67 transactions, the amount of
capital to finance this activity took a nose dive from the previous month
with just $2.6 billion committed. And for the first time all year, we had
a month in which no billion-dollar deals were announced. Is this due to
jitters over the approaching elections or just a statistical glitch?
August 2004
A Midsummer’s Hospital Market
August wins the gold as the single
most active month in Hospital M&A in several years. Eight transactions
landed 47 hospitals with over 8,200 beds. This activity was driven by two
big deals. The Blackstone Group is participating in a $1.75 billion
recapitalization of Vanguard Health Systems and LifePoint Hospitals is
buying Province Healthcare for $1.7 billion. The buyers are paying
handsomely, but will they get value for their money?
July 2004
Health Care M&A Results for
The Second Quarter of 2004
The second quarter witnessed 230
mergers and acquisitions in the health care industry. While health care
services sectors accrued just 48% of the total deal volume, they captured
53% of the $25.3 billion spent to finance this M&A activity.
June 2004
Hostilities Erupt on the
Institutional Pharmacy Front!
In the first hostile takeover bid in
the domestic health care industry this year, institutional pharmacy giant
Omnicare wants to increase its lead with the $1.5 billion purchase of
rival NeighborCare.
NeighborCare has rejected the offer, but could be waiting for more
favorable terms.
May
2004
UnitedHealth Group Buys Oxford Health
Plan for $4.9 Billion
Not content to watch Anthem and WellPoint
overtake it as the country’s largest health insurer, UnitedHealth Group is
paying $4.9 billion to buy Oxford Health Plans and establish a beachhead in
the Northeast.
April 2004
Health Care M&A Results for The First
Quarter of 2004
A total of 198 deals were announced during Q1:04. Based on revealed
prices, up to $86.2 billion was committed to finance this M&A activity.
March
2004
March Madness, Or Managed Care Merger
Mania
The past four weeks have witnessed a
plethora of Managed Care deals. See how the new Medicare law is stimulating
activity in this sector.
February 2004
O La La: Sanofi Launches Hostile Bid for
Aventis Worth $61 Billion
Hostile bids in the Pharmaceutical
sector are very
rare. Read inside for the rationale behind this
one, and the reactions of the various parties.
January
2004
Health Care M&A Results for The Fourth
Quarter of 2003
The fourth quarter posted 221 deals, roughly one-quarter of the year’s
total volume. However, those deals were financed with $43.7 billion, or
47% of the year’s total amount.
December 2003
The Year 2003 Closes with Twelve Billion-Dollar Deals
As December draws to a close, we
estimate 875 deals in the health care M&A market for 2003. Based on
revealed prices, $90 billion was committed to fund this activity. The year
2003 closed with 12 billion-dollar deals, at a rate of one per month. They
totaled $55.67 billion, divided equally between the health care service
and technology segments.
November
2003
Anthem and WellPoint Craft Largest
Managed Care Deal Ever
Anthem will pay $16.4 billion for
WellPoint Health Networks in a deal that creates the largest health care
insurer in the country. The resulting behemoth will control 30% of the
country’s 88.3 million enrollees in Blue Cross and Blue Shield plans, in
13 states. Will the size and resources of this giant MCO inspire other
Blues plans to convert and be acquired, or will it serve only to turn them
off? Read inside for more.
October 2003
Health Care M&A Results for The Third Quarter of 2003
Both the volume of transactions
and the amount paid to finance them increased against the second quarter’s
levels. A total of $19.4 billion was spent on a total of 230 deals.
September 2003
Pharmacy Benefits Managers: And Then
There Were Three
Caremark Rx has laid out plans to buy competitor AdvancePCS for $6
billion. This merger solidifies the surviving company’s position as the
the second largest pharmacy benefits manager in the country in terms of
revenue. At the same time, the transaction
reduces to three the number of large PBMs.
Subsequent PBM consolidation will tend to involve smaller, regional
PBMs.
August 2003
Medical Devices Dominate with $6.2 Billion in Deals
While the Northeast power grid
and much of the country took
vacations during the month, the M&A market in Medical Devices
was hard at work.
A total of 13 deals were announced; based on prices revealed to
date, a total of $6.2 billion was committed to bankroll these
Medical Device deals.
July 2003
Health Care M&A Results for The Second
Quarter of 2003
While deal volume basically
remained flat from the previous quarter’s level, the total amount
committed to the health care M&A market soared by nearly 50%. Based on
revealed prices, a total of $18.1 billion was spent to fund 222
transactions.
June 2003
WellPoint Back in the Saddle With Bid for Wisconsin Blues
Even as the plan to buy CareFirst
BlueCross BlueShield was lowered into its grave, WellPoint Health Networks
was looking elsewhere for acquisition opportunities. WellPoint has now
offered to buy Cobalt Corp. for $906 million.
May 2003
Chiron Buys Vaccine Producer PowderJect for
$878 Million
As SARS worries draw attention to
vaccine makers, Chiron Corp. offers $878 million to buy PowderJect
Pharmaceuticals and become the world’s number two producer of vaccines.
April 2003
M&A Results for the First Quarter
of 2003
A total of 218 transactions were
announced during the first quarter of the year, with a combined total of
$13.5 billion committed to fund them. The health care technology segment
dominated both deal volume and dollars spent.
March 2003
The Envelope, Please: It’s Biotech, Again
For the second month running, the Biotechnology sector led M&A activity in the health care industry, with 17% of the deal volume and 45% of the money committed.
February 2003
Johnson & Johnson to Buy Biotech Firm Scios For $2.7 Billion
Johnson & Johnson is buying Scios for $2.7 billion. This deal gives the health care giant the only major drug for congestive heart failure to be approved by the FDA in the past 10 years.
January 2003
Back in Business? M&A Activity Surges at Year’s End
Deal volume shot up 36% from the previous quarter to reach 286 transactions, the highest level since 1998. The $12.1 billion spent to make these deals represents 30% of the year’s total, excluding the $60 billion Pfizer-Pharmacia mega-merger.
December 2002
Health Care Ends 2002 With $100 Billion in M&A Deals
November 2002
LabCorp Pays Nearly $600 Million For Oncology Lab Company
To increase its share of the oncology lab testing market, LabCorp is paying $47.50 in cash for each share of DIANON System’s stock. This is the richest deal LabCorp has ever undertaken in terms of its P/R ratio.
October 2002
Health Care M&A Results for The Third Quarter of 2002
M&A activity remained buoyant in the health care industry despite the market meltdown during the third quarter. Nearly 210 deals were announced with a combined value of $68 billion. With about $92 billion committed to fund nearly 660 deals for the first three quarters of 2002, health care is the most active sector in the M&A market this year.
September 2002
Pricing Medical Device Companies
The Medical Device sector accounted for more than one deal in every four announced during the past month. With deal volume steady over the past two years, pricing has dipped somewhat.
August 2002
Guidant Buys Cook For $3 Billion To Prop Open Revenue Flow
In a bid to enter the promising drug-eluting stent market, Guidant is paying $3 billion to acquire the Cook Group.
July 2002
Pfizer Scoops Up Pharmacia Corp. In $60 Billion Deal
In a deal valued at $60 billion, pharmaceutical giant Pfizer just got even bigger by acquiring Pharmacia Corp. With this combination, growth to satisfy investors will depend as much on marketing clout as on the introduction and sale of blockbuster
drugs.
June 2002
Blue Cross and Blue Shield Plans: More Acquisitions to Come?
Blue Cross and Blue Shield plans in several states are contemplating conversion to for-profit status. Potential buyers face a variety of challenges.
May 2002
Results For The Hospital Acquisition Market 1997-2001
While the volume of Hospital mergers and acquisitions has declined steadily over the past five years, pricing has actually risen.
April 2002
Health Care M&A Results for The First Quarter of 2002
With 201 deals in the first quarter, M&A activity dropped just 4% from the previous quarter’s levels. Health care technology led the field, capturing 62% of the deal volume and 70% of the dollars spent.
March 2002
Senior Care Acquisition Prices Regain Their Footing
Pricing to acquire senior care facilities rose in 2001. Many of the facilities coming on the market were relatively young, commanding higher prices than in the prior year.
February 2002
Express Scripts Buys Largest Private PBM for $515 Million
By acquiring the country’s largest independent, privately held PBM for $515 million, Express Scripts enhances its presence in the Northeast and accelerates sales to union- and government- sponsored groups.
January 2002
Health Care M&A Results for The Fourth Quarter of 2001
With 184 deals announced, M&A activity rose a mere 1% over the previous quarter's levels. However, the $27.4 billion spent to fuel these deals rose nearly two and a half times over Q3:01. The health care M&A market is poised for growth, particularly in tactical acquisitions, for 2002.c them.
December 2001
Biotech Companies Go on A Holiday Shopping Spree
In a month with 17 deals in the biopharmaceutical industry worth over $20 billion, Amgen’s $16 billion purchase of Immunex signals a coming of age for the Biotechnology sector.
November 2001
WellPoint Buys RightChoice Managed Care For $1.3 Billion
WellPoint Health Networks is buying RightChoice Managed Care for $1.3 billion. Despite this deal and recent successes of managed care organizations in the IPO market, this deal is unlikely to blossom into an acquisition spree.
October 2001
Health Care M&A Results for The Third Quarter of 2001
Deal volume dropped 16% from the previous quarter's levels. For the first time in three quarters, the health care technology sectors accounted for the majority of deals announced. Over $7.9 billion was expended to make these deals. Read inside to find where investors are putting their money to work.
September 2001
How Will the Market Respond in the Wake of Terrorism?
Despite the temporary turmoil in the capital markets wreaked by the recent terrorist attacks, including a suspension of M&A activity, we believe that over the long term the economy’s strong fundamentals will reassert themselves and that the markets will recover.
Read how the kind of device a company manufactures, the size of its revenues and whether it is publicly traded influence the price paid when it is bought.
August 2001
What They’re Paying For Medical Device Companies
A study of M&A activity in the Medical Device sector for the past 18 months reveals several salient factors in determining acquisition pricing.
Read how the kind of device a company manufactures, the size of its revenues and whether it is publicly traded influence the price paid when it is bought. July
2001
Health Care M&A Results for The Second Quarter of 2001
The number of M&A deals rose 3% from the previous quarter's levels while the amount spent to make them rose 17%. Find out where investors are directing their dollars. June
2001
Bristol-Myers Squibb Builds a Bridge to New Revenues
Bristol-Myers Squibb has announced plans to buy DuPont’s pharmaceutical business for $7.8 billion. Is BMY paying too much for DuPont’s drug development pipeline? Read inside. May
2001
A New Round of Consolidation In The
Pharmaceutical Sector?
Signs have appeared of a new wave of consolidation in the Pharmaceutical industry. Aging product lines and upcoming patent expirations are driving the search for new product pipelines and revenue sources.
April 2001
The Hospital M&A Market, 2000
While the number of hospital deals in 2000 dropped from 1999 levels, the acquisition multiples used in the deals rose.
March 2001
Skilled Nursing Facility Per Bed Prices Hit Six-Year Low
Pricing has finally
caught up with reality, as the price per bed for nursing homes reaches its
lowest level since 1994.
February 2001
Is
There Any Future for PPMs?
While the
physician practice management industry has been out of favor in the
investment community for some time, two recent deals suggest PPMs may
prosper when linked with hospital operations.
January 2001
M&A
Results for The
Fourth Quarter of 2000
Four
sectors, Biotechnology, e-Health, Medical Devices and Pharmaceuticals,
accounted for 62% of the 231 mergers and acquisitions announced in the
fourth quarter of 2000.
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