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May 27, 2013 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
BTG plc
Therasphere
$200 million
BTG plc
EKOS Corporation
$180 million
Laboratories, MRI and Dialysis
Acquirer
Target
Price
American Realty Capital Healthcare Trust II
Fresenius Dialysis Center
$1.9 million
Pharmaceuticals
Acquirer
Target
Price
Bayer AG
Steigerwald Arzneimittelwerk GmbH
N/A
Actavis, Inc.
Warner Chilcott plc
$8.5 billion
Service Deal of the Week
It was a quiet week on Services side of health care M&A. The biggest deal announced was Aviv REIT, Inc.’s (NYSE: AVIV) purchase of a post-acute and long-term care skilled nursing facility in Ohio, for $14.4 million. The property is triple-net leased to Saber Healthcare Group, an operator of SNFs and assisted living facilities with 71 facilities in five states. The triple-net lease has an initial cash yield of 10.0%, initial lease term of 10 years and an annual compounded escalator based on CPI. Year-to-date, Aviv has closed on $29 million of investments…….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 took nearly six months, but the Pharmaceuticals sector is finally fulfilling all the earlier predictions of increased M&A activity. So far this year, nearly $18.9 billion has been committed to buying whole companies, or some rather pricey bolt-ons. Last week’s winner was the acquisition of Warner Chilcott plc (NASDAQ: WCRX) by Actavis, Inc. (NYSE: ACT) for $8.5 billion. But the ever-elusive Elan Corporation (NYSE: ELN) announced two deals on May 20th for two pharmaceutical companies, AOP Orphan Pharmaceuticals, based in Vienna, Austria, and Newbridge Pharmaceuticals, in San Francisco, California, for about $380 million. The announcement did nothing to derail Royal Pharma’s hostile takeover bid for Elan. In fact, Royal Pharma upped its offer to $12.50 per share, from its previous $12.00 per share offer.
Top 10 Pharmaceutical M&A Transactions in 2013, through May 24, 2013
Rank
Acquirer
Target
Price
1
Actavis, Inc.
Warner Chilcott plc
$8,500,000,000
2
Biogen Idec, Inc.
Rights to Tysabri
$3,250,000,000
3
Mylan, Inc.
Agila Specialities Private Ltd.
$1,600,000,000
4
Elan Corporation, plc
Royalties to 4 Theravance drugs
$1,000,000,000
5
Allergan, Inc.
MAP Pharmaceuticals, Inc.
$958,000,000
6
Novo A/S
Xellia Pharmaceuticals
$700,000,000
7
BASF
Pronova BioPharma ASA
$687,456,789
8
Auxilium Pharmaceuticals
Actient Pharmaceuticals, LLC
$585,000,000
9
Valeant Pharmaceuticals
Obagi Medical Products, Inc.
$418,300,000
10
Elan Corporation, plc
AOP Orphan Pharmaceuticals
$339,915,000
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
BTG plc (LSE: BTG), a British biotechnology company, popped up on the radar late last week with its announcement of two acquisitions. The first was for Seattle, Washington-based EKOS Corporation, maker of the EkoSonic® Endovascular System, for approximately $180 million in cash up front, and up to $40 million in future milestone payments. The EkoSonic® System is an interventional product to treat severe blood clots. It is used in 490 U.S. hospitals already, and its differentiated technology patents are covered until 2022, with additional filings to 2030. The second acquisition was for the Targeted Therapies division of Nordion, Inc. for $200 million in cash. The division’s lead product is Theraspace®, a targeted interventional treatment of liver cancer, using radioactive glass beads. Both acquisitions boost BTG’s interventional medicine strategy……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
IPOs are making a come-back, of sorts, in biotech and pharmaceuticals. On May 22, Portola Pharmaceuticals (NASDAQ: PTLA) raised $122 million with the sale of 8,422,758 shares priced at $14.50 each. Portola is a biotechnology company focused on developing novel therapeutics in the treatment of thrombosis, hematologic disorders and inflammation for patients who currently have limited or no approved treatment options. A week earlier, Ambit Biosciences Corp. (NASDAQ: AMBI) priced its shares at $8.00 and raised $65 million. The biopharma company focuses its discovery and development efforts on drugs to treat unmet needs in oncology, autoimmune and inflammatory diseases by inhibiting kinases. It has three programs in its pipeline, at present…..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:
Physician Medical Groups: Buying, Selling and Valuing
Thursday, June 20, 2013, 1:00 pm ET
What drives this market? Where and when should you buy or sell? Who’s buying what and what influences the valuation of physician medical groups? Find out more from our expert panel: Aytan Dahukey (Moderator), Counsel in the Corporate Practice Group, Sheppard Mullin Richter & Hampton; Bill Gil, President and Chief Executive Officer, Facey Medical Foundation; Kenneth Hawkins, Senior VP, Acquisitions & Development, Community Health Systems; Jason Ruchaber, Partner, HealthCare Appraisers, Inc.; Will Tao, Senior Associate, Healthcare Mergers & Acquisitions, Provident Healthcare Partners, LLC.
Go to http://www.levinassociates.com/conferences/1306b-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 May 31st and receive $50 off your purchase! Go to http://www.levinassociates.com/landing/har19order or call 800-248-1668 to preorder today!
Webcast Calendar…Click here to see more
