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June 17, 2013 Issue:
Recent Health Care M&A Deals
Behavioral Health Care
Acquirer
Target
Price
Strategic Behavorial Health, LLC
Peak Behavorial Services Hospital
N/A
Hospitals
Acquirer
Target
Price
Viva Holdings Vietnam (Pte.)
Fortis Hoan My Medical Corporation
$80 million
Pharmaceuticals
Acquirer
Target
Price
Astrazeneca
Pearl Therapeutics Inc.
$560 million
Questcor Pharmaceuticals
Synacthen
$60 million
Jiangu Chia-tai Tianging Pharmaceutical Co., Ltd. (CTTQ)
Rights to Hepatitis C Treatment
$30 million
Service Deal of the Week
MEDNAX, Inc. (NYSE: MD) marched northward last week, making its first anesthesiology acquisition in New York State. Anesthesia Group of Onondaga, P.C., a physician group practice in Syracuse, employs 20 anesthesiologists, 22 anesthetists and four other clinical and administrative staff. It has been the sole provider of anesthesia services to St. Joseph’s Hospital Health Center since 1975 and also provides services to the hospital’s affiliated surgery centers, Northeast Surgery Center and North Medical Surgery Center. MEDNAX’s Pediatrix Medical Group division currently provides neonatal intensive care services at St. Joseph’s Hospital. The only details disclosed on the transaction were that it was cash, and is expected to be immediately accretive to earnings…..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
The U.S. Supreme Court’s ruling last week that human genes are not patentable sent us into our database to check out M&A activity in the Biotechnology sector in recent years. The biotech market benefited from the Great Recession, especially in 2008 and 2009. Deal volume hit its acme at 193 deals in 2009, but deal value slid nearly 50%, to just $47.4 billion. Last year’s results showed a similar shift, with improved deal volume (vs. 2011), and sinking deal value, down 43.7% to $18.7 billion, the lowest total since 2004, when 96 deals produced only $6.7 billion in disclosed prices. So far this year, we’ve recorded a measly 23 biotechnology deals, but a whopping $17 billion in deal value—thanks almost entirely to the $15.8 billion acquisition of Life Technologies (NASDAQ: LIFE) by Thermo Fisher Scientific (NYSE: TMO) in April. With that kind of boost, 2013’s Biotechnology M&A will likely surpass 2012’s dismal performance on deal value, even if deal volume doesn’t ignite.
Biotechnology M&A, 2008 to 2012
2012
2011
2010
2009
2008
Deal volume
106
81
128
193
148
% change, y-o-y
30.9%
-36.7%
-33.7%
30.4%
2.1%
Deal value
$18.7 B
$33.2 B
$60.9 B
$47.4 B
$93.9 B
% change, y-o-y
-43.7%
-45.5%
28.4%
-49.5%
117.8%
Source: Irving Levin Associates, Inc., June 2013
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
Suddenly the Medical Devices sector is hot. Even a couple of weeks ago, M&A activity bordered on moribund. But so far this month we’ve seen a flurry of deals, including Blackford Capital’s acquisition of Mopec, Inc.; Mindray Medical International Limited’s (NYSE: MR) agreement to purchase ultrasound technology company ZONARE Medical Systems, Inc., for $105 million; RTI Biologics (NASDAQ: RTIX) acquiring privately held Pioneer Surgical Technology for an undisclosed price; and Carl Zeiss AG’s announced deal for U.S.-based Xradia, Inc., provider of 3D X-ray microscopes for industrial and academic research applications. Teleflex Incorporated (NYSE: TFX) actually announced two deals, less than a week apart. The first was for Israeli company Eon Surgical, Ltd., a late-stage development company that has a minimally invasive microlaparoscopic surgical platform technology to help surgeons perform scarless surgery and produce better patient outcomes. The second was for the assets of Ultimate Medical and its affiliates, which develop and supply airway management devices, including the Cuff Pilot™, the world’s first integrated cuff pressure indicator for one-time use….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
Mobile health company Mobisante, Inc. raised $4,192,710 in a Series A financing to fund sales and marketing efforts behind its growing suite of mobile ultrasound devices. The Redmond, Washington-based company developed the first FDA-approved ultrasound imaging system that works on a smartphone. The round was led by WRF Capital, and included the W Fund and a group of investors from the Alliance of Angels. This is its first closing, and the company expects to do another closing soon…..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:
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, CEO, Medical Foundations, Providence Health & Services- Southern California; Kenneth Hawkins, Senior VP, Acquisitions & Development, Community Health Systems; Jason Ruchaber, Partner, HealthCare Appraisers, Inc.; Jonathan Morphett, Managing Director, Avondale Partners LLC.
Go to http://www.levinassociates.com/conferences/1306b-online-conference or call 800-248-1668 to register.
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