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July 8, 2013 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
Platine Pharma Services
Immuno-Monitoring Activities
N/A
Medical Devices
Acquirer
Target
Price
Mitsui Chemicals, Inc.
DENTCA, Inc.
N/A
Prollenium Medical Technologies, Inc.
Ovita HV Brand
N/A
GE Healthcare Korea
Mammography assets of Rayence
N/A
Rehabilitation
Acquirer
Target
Price
Select Medical
Two Rehabilitation Hospitals
N/A
Services Deal of the Week
Sabra Health Care REIT, Inc., (NASDAQ: SBRA) purchased Greenfield of Woodstock, a 32-unit assisted living facility in Woodstock, Virginia, for $6.2 million in cash. Concurrent with the purchase, Sabra entered into a triple-net lease agreement with affiliates of Greenfield Senior Living, Inc. The lease has an initial term of 15 years with two 10-year renewal options and provides for annual rent escalators or 3.0%, resulting in annual lease revenues of $0.6 million and an initial yield on cash rent of 7.75%. …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
With the evolution of the Accountable Care Organization ongoing, we decided to look at who is buying what. This week, we researched deals made in the Managed Care sector to see if there were any discernable trends. Only six deals have been made public so far this year, three in Q1:13 and three in Q2:13, there’s not a lot to tell. Three transactions involved managed care companies as targets, two were for physician medical groups and one fell into our “other” category, because it was for a specialty pharmacy company, AcariaHealth. That deal was one of only two that came with disclosed prices, as AcariaHealth was acquired by Centene Corporation (NYSE: CNC) for $152 million. Centene, a multi-line health insurer, already owns pharmacy benefit manager US Script, and this deal expands its specialized pharmacy benefit services for complex diseases such as hepatitis C, hemophilia, multiple sclerosis, rheumatoid arthritis and oncology. And please don’t write in to say we missed the Highmark/West Penn Allegheny Health System deal. We peg deals to the date of announcement, so even though that $1.5 billion deal finally closed this year, it was announced in June 2011. Have a great week.
Health Care Acquisitions by Managed Care Companies, through June 2013
Acquirer
Target
Target’s sector
MVP Health Care
Hudson Health Plan
Managed Care
Highmark, Inc.
Triangle Urological Group
Physician Medical Group
Citrus Universal Healthcare
Universal Health Care Group
Managed Care
WellCare Health Plans, Inc.
Missouri Care, Inc.
Managed Care
Centene Corporation
AcariaHealth
Other
Providence Health Care
Northeast Washington Medical Group
Physician Medical Group
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
On July 1, Covidien (NYSE: COV) announced it had completed the separation of its pharmaceuticals business, which is now held by Mallinckrodt plc, a new independent company. The distribution of Mallinckrodt shares began on June 28, 2013, and regular trading on the New York Stock Exchange, under the ticker symbol MNK, began on July 1. Covidien announced in December 2011 that it planned to spin-off the pharma business. In fiscal 2012, excluding the pharma business, Covidien had annual sales of $9.9 billion. It is now exclusively a medical devices company, which represented about 80% of the company’s sales, and medical supplies comprising the remainder…..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
Complix, a Belgian biopharmaceutical company focused on the discovery and development of Alphabodies™, a unique class of protein therapeutics active against intracellular disease targets, closed a $15.5 million Series B equity financing round from a syndicate of life sciences investors. The round was co-led by Edmond de Rothschild Investment Partners, Gimv, and Biotech Fund Flanders. Existing shareholders LRM, OMNES Capital, Vesalius Biocapital, Gemma Frisius Fund, TrustCapital, Vinnof, Baekeland Fund, CRP-Santé and management also participated in this round. Alphabodies is a transformative bio-therapeutic platform that can address a vast number of disease targets currently considered “undruggable” by the two main classes of therapeutics: small chemical drugs and therapeutic antibodies. Its ability to modulate the intracellular protein-to-protein interactions which play a key role in the initiation and progress of many important diseases, represents a major opportunity for Complix and its partners…..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:
Tax-Exempt Entities: Buying, Selling and Valuing
Wednesday, August 7th, 2013, 1:00 pm ET
The not-for-profit merger and acquisition market—specifically not-for-profit health care businesses that acquire other not-for-profit health care businesses—is rapidly and continually evolving. Not-for-profits typically raise capital in different fashions and from different sources than for-profit entities. Find out more from our expert panel: Glenn Fox (Moderator), Attorney at Law; Charles Bissell, National Practice Leader, Seniors Housing & Health Care Practice, Integra Realty Resources; Joseph Lupica, Chairman, Newpoint Health; Jeff Petty, CEO, Wesley Enhanced Living; William Pomeranz, Managing Director, Cain Brothers.
Go to http://www.levinassociates.com/conferences/1308-online-conference or call 800-248-1668 to register.
Webcast Calendar…Click here to see more
