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May 20, 2013 Issue:

Recent Health Care M&A Deals





Alameda Health System

San Leandro Hospital



MedCentral Health System


Medical Devices




TriStar Wellness Solutions

HemCon Medical Technologies

$3.075 million


Spectrum Dynamics

$51 million





Elan Corporation, LLC

Theravance, Inc.

$1.0 billion

Service Deal of the Week
Things were tamer in the Long-Term Care sector last week, as Chartwell Retirement Residences (TSX: CSH.UN) accepted an offer of $80.9 million from Brookdale Senior Living Inc. (NYSE: BKD). The price paid, $61 million in debt (mostly assumed) and the rest in cash, was for seven senior living communities located in Alabama (1), Arizona (2), Georgia (2), Louisiana (1) and Oklahoma (1). Brookdale has been managing all but the Alabama community since its September 2011 acquisition of Horizon Bay. The deal adds 613 units, with 493 assisted living, 80 independent living and 40 Alzheimer’s units. …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
In the first four months of 2013, the Biotechnology sector has racked up 21 deals. That’s not a bad showing, but the pace will have to pick up soon if this year is going to rival 2012’s 107 transactions. However, deal value in the Biotech sector has already hit $16.7 billion, which is very close to last year’s combined total of $18.7 billion. However, looking back over the last five years of M&A activity in the category shows that the best years for Biotech deals were among the worst for the U.S. economy. In 2008, the 148 deals turned in a total of $94 billion. And while deal volume soared 30% in 2009, deal values plunged nearly 50%. So far, 2013 hasn’t demonstrated such volatility, but the year is still young. We’ll keep you posted.
Biotechnology Deals, 2008 to 2012







Deal volume






% change






Deal value*






% change






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Technology Deal of the Week
The drama continues in the Pharmaceuticals sector, and Elan Corporation, plc (NYSE: ELN) is once again in a starring role. When we last left them, Elan’s board “unanimously and without reservation” had rejected yet another hostile takeover bid by Royalty Pharma’s acquisition arm, Echo Pharma Acquisition Limited. The company’s published response “strongly advised” shareholders to take no action in relation to the offer. To top it off, Elan turned around and paid $1 billion to Theravance, Inc. (NASDAQ: THRX) in exchange for 21% interest in royalty payments from four respiratory programs the company has going with GlaxoSmithKline plc (NYSE: GSK). Late last month, Theravance announced it would split into two companies, with one branch as a biopharma company and the other a royalty management company. …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
Cambridge, Massachusetts-based Tokai Pharmaceuticals, Inc. announced it has raised $35.5 million in Series E financing to support its lead prostate cancer drug candidate, galeterone (TOK-001) in ongoing clinical trials. The biopharma company will expand the ongoing ARMOR2 Phase 2 trial of galeterone in patients with castration-resistant prostate cancer and prepare for registration studies. The financing included current investors Apple Tree Partners and Novartis Venture Funds, as well as undisclosed angel investors…..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.
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Upcoming Interactive M&A Webcast:
CCRCs: Buying, Selling and Valuing
Thursday, May 23, 2013, 1:00 pm ET            
Has the market changed since the depths of the Great Recession? The answer is yes, and while there are still some distressed CCRC sales on the market, the environment is much better with the housing market gaining strength and perhaps a pent-up demand for what the CCRC product offers. Find out more from our expert panel: Stephen M. Monroe (Moderator), Managing Editor and Partner, Irving Levin Associates, Inc.; Paul Brand, Treasurer and CFO, Concordia Lutheran Ministries; Allen McMurtry, Executive Managing Director, Principal, Cassidy Turley; David Reis, CEO, Senior Care Development, LLC; David Salinas, Partner, HealthTrust LLC.
Go to or call 800-248-1668 to register.
Webcast Calendar…Click here to see more