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April 29, 2013 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
OPKO Health, Inc.
PROLOR Biotech, Inc.
$480 million
Home Health Care
Acquirer
Target
Price
Mears
Independent Living Services (ILS) Ltd.
$34.425 million
Hospitals
Acquirer
Target
Price
Catholic Health Initiatives
St. Luke’s Episcopal Health System
$1 billion
Vibra Healthcare, LLC
17 Facilities including 15 LTAC’s
$187 million
Pharmaceuticals
Acquirer
Target
Price
Ocera Therapeutics, Inc.
Tranzyme, Inc.
$5.6 million
Service Deal of the Week
The Episcopal Diocese of Texas approved the transfer of St. Luke’s Episcopal Health System in Houston to Catholic Health Initiatives, the national health system with 76 hospitals, 40 skilled nursing, assisted living and residential living facilities and other agencies and organizations. St. Luke’s board of directors narrowed the field of 30 potential partners down to three in March, and announced its decision in April. Under the agreement, nonprofit CHI will contribute more than $1 billion to create a new foundation and an additional $1 billion for future investment in the health system. The transaction is expected to be completed early this summer……Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
Charted Territory
It’s not even May and Shire plc (NASDAQ: SHPG) has announced two deals in the Biotechnology sector, with a combined purchase price of $209 million. Its largest acquisition to date is SARcode Bioscience Inc., announced in March, for $160 million in upfront cash and “significant undisclosed payments” for undisclosed milestones (which may or may not be reached). The second deal was announced in January, for Lotus Tissue Repair, for an upfront payment of $49 million that doesn’t include safety and development milestones. In 2012, the Irish giant announced five deals with a combined total of $338 million (only three of those came with prices). Stay tuned for more announcements.
Top 5 Biotechnology Deals of 2013, through April 26
Rank
Acquirer
Target
Price
1
Thermo Fisher Scientific Corp.
Life Technologies Corporation
$15,800,000,000
2
Shire plc
SARcode Bioscience Inc.
$160,000,000
3
Roche Holding AG
Rights to Octreolin
$65,000,000
4
Baxter International, Inc.
Rights to hemophilia compound OBI-1
$50,000,000
5
Shire plc
Lotus Tissue Repair, Inc.
$49,000,000
Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today
Technology Deal of the Week
OPKO Health Inc. (NYSE: OPK) is at it again. This week, the acquisitive biopharmaceutical company agreed to buy Israeli drug company Prolor Biotech Inc. (NYSE MKT: PBTH) in a stock swap valued at $480 million. Prolor shareholders will receive 0.9951 shares of OPKO common stock for each share of Prolor common stock. Prolor has a promising long-active version of human growth hormone, hGH-CTP that has successfully completed four clinical trials. This is OPKO’s second deal announced this year, following on the heels of its purchase of Cytochroma Inc. in January for $100 million in common stock, and six deals in 2012, for a combined total of $21.8 million in cash up front, $30.6 million in common stock and an option to pay another $8.4 million in either cash or stock. Terms were not disclosed in three of those deals. OPKO chairman and CEO, Dr. Phillip Frost, is also chairman of Israeli generic drug maker Teva Pharmaceuticals Ltd. (NASDAQ: TEVA) and Prolor. Just keeping things in the corporate family, it seems…..Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
In the Pipeline
At $120 billion a year, medical imaging is a significant market. And as the Affordable Care Act edges closer to taking full effect next year, startups everywhere are seeking solutions that meet the requirements for meaningful use, patient privacy, electronic health records and all the other regulatory hoops. lifeIMAGE, a network that securely shares medical images and related health information through the cloud, recently closed a $15 million Series C round of financing that will fund growth and operations. lifeIMAGE has been used by more than 29,000 people in 68 countries to share more than 410 million medical images. Some 180 of the largest U.S. hospitals have tapped lifeIMAGE to exchange x-ray, CT, MRI, nuclear medicine, ECG, ultrasound and other types of diagnostic imaging exams in and outside their health systems. Physicians use it for remote consultations and second opinions with other physicians and patients, and can import the images into their own electronic medical record systems…….Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
Upcoming Interactive M&A Webcast:
CCRCs: Buying, Selling and Valuing
Thursday, May 23, 2013, 1:00 pm ET
The collapse of the residential housing market, several high profile bankruptcies and general economic downturn has the Continuing Care Retirement Communities (CCRCs) market in a place of uncertainty. Traditionally a very successful model for delivering senior housing and health care, CCRCs simultaneously face the future bursting demand of the baby-boomers and current consumer apprehension. Find out more from our expert panel: Stephen M. Monroe (Moderator), Managing Editor and Partner, Irving Levin Associates, Inc.; David Reis, CEO of Senior Care Development, LLC; plus additional speakers to be announced.
Go to http://www.levinassociates.com/conferences/1305b-online-conference or call 800-248-1668 to register.
NEW – The Health Care Services Acquisition Report, 19th Edition – Save $50
Deals have been made. The 2013 Health Care Services Acquisition Report contains private deals in this market that are too small to make it into the financial press. Take advantage of our limited time $50 instant savings offer – order The 2013 Health Care Services Acquisition Report by April 30th and receive $50 off your purchase! Now that’s a recession resistant deal. Go to http://www.levinassociates.com/landing/har19order or call 800-248-1668 to preorder today!
Conference Calendar…Click here to see more
