Health Care Deal News, September 8, 2014 – August’s Deal Volume Rundown

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September 8, 2014 Issue:

Recent Health Care M&A Deals

Pharmaceuticals

Acquirer

Target

Price

AbbVie, Inc.

Rights to duvelisib

$275 million

Knight Therapeutics Inc.

Rights for ATryn® and
PHOTOFRIN®

N/A

Concordia Pharmaceuticals Inc.

Rights to Zonegran

N/A

Other

Arcam

DiSanto Technology

$15.8 million

AbbVie Buys Into Blood Cancer Drug
AbbVie Inc. (NYSE: ABBV), once dismissed for its dependence on a single drug (Humira), is beefing up its oncology pipeline with another collaboration. Infinity Pharmaceuticals (NASDAQ: INFI) has agreed to receive an upfront payment of $275 million, with another $530 million in potential milestones down the road, and will collaborate with AbbVie on developing and marketing duvelisib (IPI-145). The preclinical drug has shown clinical activity across a range of blood cancers.

August Deal Volume Holds Steady
Okay, if you’re looking at the table below, it looks as if health care M&A tanked in August, with an overall decrease of 32%. That just shows how out-of-whack July’s totals were, with 121 transactions across virtually every sector. In fact, August 2014 deal making was right on par with previous Augusts, dating back to 2010. Since then, the average number of deals announced in August is 80, and average spending is $17.5 billion for all sectors. With 82 transactions and $19.6 billion in spending last month, there’s really nothing to get alarmed about.

August 2014 Health Care Deal Volume by Sector

Sector

Deals

Change vs. July

Behavioral  Health Care

0

0%

Home Health & Hospice

2

-60%

Hospitals

2

-50%

Labs, MRI & Dialysis

0

-100%

Long-Term Care

21

-36%

Managed Care

2

0%

Physician Medical Groups

3

50%

Rehabilitation

1

-67%

Other

10

-23%

Services Subtotal

41

-40%

Biotechnology

7

-30%

eHealth

7

-42%

Medical Devices

10

67%

Pharmaceuticals

17

-32%

Technology Subtotal

41

-23%

GRAND TOTAL

82

-32%

Source: The Health Care M&A Information Source, September 2014

Aviv REIT Rolls West
Aviv REIT (NYSE: AVIV) went west with its latest acquisition of seven senior care properties in Idaho and Washington for $83.6 million. The targets include four skilled nursing facilities and one assisted living facility in Washington, and one campus in Idaho that includes one skilled nursing facility and one assisted facility. All of the properties have been triple-net leased to an existing Aviv operator, EmpRes Healthcare Management, LLC in Vancouver, Washington.

Digital Health Company Closes $14.5M in Series B Round
Propeller Health has already received FDA clearance for its digital health solution for chronic respiratory diseases such as asthma and COPD. Last week, it also raised $14.5 million in Series B financing, led by Safeguard Scientifics (NYSE: SFE) with participation from a Series A investor, The Social+Capital Partnership. Propeller plans to use the funding to accelerate product development, strategic alliances, client services, sales and market. What else? ……….Click here for a free trial to The Health Care M&A Information Source and download the current issue today.

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