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Week Ending November 7, 2014:
Recent Health Care M&A Deals
Acquirer
Target
Price
Biotechnology
Astellas Pharma Inc.
Therapeutic candidates
N/A
Bio-Techne
CyVek, Inc.
$60 million
MedImmune
Definiens
$150 million
Hospitals
Community Health Systems
Gaffney Medical Center
N/A
HCA
Citrus Memorial Hospital
$195 million
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LabCorp Bets on Covance
Laboratory Corporation of America Holdings (NYSE: LH) last week announced its acquisition of Covance Inc. (NYSE: CVD) for cash and LabCorp shares, then valued at $105.12 per Covance share, or an equity value of approximately $6.1 billion and an enterprise value of approximately $5.6 billion. The combination, which has been approved by both companies’ boards of directors, creates the world’s leading healthcare diagnostics company, capitalizing on LabCorp’s position in medical testing and Covance’s global position in contract research. Covance shareholders will receive $75.76 in cash and 0.2686 LabCorp shares for each CVD share they own. Covance shareholders will own approximately 15.5% of the combined company.
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More M&A Action in the Offing for Home Health & Hospice Sector
Now that Kindred Healthcare (NYSE: KND) succeeded in its hostile takeover of Gentiva Health Services (NASDAQ: GTIV), we took stock of the prospect for more transactions in Home Health & Hospice sector. Here’s what’s out there: In August, GTCR LLC hired Goldman Sachs Group and Jefferies to help it find a buyer for Curo Health Services, which operates 87 locations across 10 states. The rumored price is $750 million. In October, Cressey & Co. put Encompass Home Health Inc. up for auction. Cressey is said to be asking $700 million. Then there’s Jordan Health Services, owned by Palladium Equity Partners. There are plenty of strategic buyers still on the prowl, but fewer hostilities expected.
Home Heatlh & Hospice Transactions, 2009 to 2014 ($ in thousands)
2014*
2013
2012
2011
2010
2009
Deals
53
65
57
39
44
42
Change
-18%
14%
46%
-11%
5%
-11%
Dollars
$2,273
$3,207
$5,948
$290
$1,433
$1,410
Change
-19%
-46%
1951%
-80%
2%
-41%
* = year-to-date. Source: The Health Care M&A Information Source, November 7, 2014
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Aetna Buys Insurance Exchange Company
In August, Aetna (NYSE: AET) threw in the towel on its healthcare social network CarePass, conceding that consumers weren’t rushing to share their personal health data with the insurer, or anyone else. Last week the company went in a different direction with its $400 million purchase of bswift, a privately held digital health company with a technology platform that offers retail shopping for health insurance exchanges and employers nationwide. If you can’t beat ‘em, join ‘em.
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$26 Million to Cure an Unscratchable Itch
If you’ve ever had an itch you couldn’t scratch, you may want to think about Trevi Therapeutics, Inc., a development-stage biotechnology company working on Nalbuphine ER, for severe chronic pruritus conditions—that is, a persistent and debilitating itch in patients undergoing dialysis treatment. Trevi just announced the second and final closing of $11 million in a Series B financing of $26 million, led by TPG Biotech, the life science venture investment arm of TPG, and existing angel investors. The company is continuing enrollment for its uremic pruritus tria, a pivotal study expected to enroll approximately 360 patients, and expects to initiate enrollment at European sites for this study by year-end……….Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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