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September 3, 2013 Issue:
Recent Health Care M&A Deals
Managed Care
Acquirer
Target
Price
Magellan Health Services, Inc.
AlphaCare of New York
$17.5 million
Medical Devices
Acquirer
Target
Price
LeMaitre Vascular, Inc.
InaVein, LLC
$2.5 million
Pharmaceuticals
Acquirer
Target
Price
Amgen
Onyx Pharmaceuticals
$9.7 billion
Endo Health Solutions
Boca Pharmacal
$225 million
STADA Arzneimittel AG
Thornton & Ross Ltd.
$342.7 million
Technology Deal of the Week
The biggest deal of last week was, of course, Amgen’s (NASDAQ: AMGN) $9.7 billion acquisition of Onyx Pharmaceuticals (NASDAQ: ONXX) at $125 per share. Two other deals in the pharma space were announced, though to little fanfare. Endo Health Solutions (NASDAQ: ENDO), a specialty healthcare company, agreed to pay $225 million for Boca Pharmacal, a specialty generics company in Coral Springs, Florida. Boca will become part of Endo’s Qualitest division. AstraZeneca’s MedImmune (NYSE: AZN) division put up $225 million in cash, plus $275 million in potential milestones, to acquire Amplimmune, a privately held biotech that has developed AMP-514, an anti-programmed cell death 1 medicine that should be ready for testing in patients later this year….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
To say that M&A activity in the eHealth sector is becalmed could be considered an understatement. From January through August 2013, only 29 deals have been announced in the sector, compared with 67 in the same period in 2012. Of the 9 deals that came with disclosed prices this year, the combined total was $874 million, down about 82% from the $4.7 billion in deals announced from January through August 2012. In that period, 16 deals came with announced prices. The eHealth sector actually began this year with some good-sized deals in the first quarter, such as athenahealth’s (NASDAQ: ATHN) purchase of Epocrates (NASDAQ: EPOC) and Allscripts’ (NASDAQ: MDRX) two deals for dbMotion, Ltd. and Jardogs LLC for a combined total of $259 million. Of the 29 deals announced in the sector so far this year, 16 came out in Q1:13. Since then, deal-making has slowed considerably, and very few deals came with disclosed prices. The exception was Medtronic’s (NYSE: MDT) $200 million acquisition of Cardiocom, a privately held telehealth solutions company that provides clinical telemonitoring products and services.
Top 5 eHealth M&A Transactions in 2013*
Rank
Acquirer
Target
Price
1
athenahealth
Epocrates, Inc.
$293,000,000
2
Allscripts
dbMotion, Ltd.
$235,000,000
3
Medtronic, Inc.
Cardiocom
$200,000,000
4
QIAGEN
Ingenuity Systems, Inc.
$105,000,000
5
Allscripts
Jardogs LLC
$24,000,000
Source: * through August 30, 2013; Source: Irving Levin Associates, Inc., August 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
Services Deal of the Week
Community Health Systems (NYSE: CYH) was in the M&A spotlight again last week, but not for its pending deal for Health Management Associates (NYSE: HMA). Instead, its strategic alliance with Cleveland Clinic, formed earlier this year, resulted in two deals announced last week. The first was for the Akron General Health System in Ohio, which consists of the Akron General Medical Center, a 532-bed acute-care hospital; the 70-bed Edwin Shaw Rehabilitation Hospital; the 25-bed critical access Lodi Community Hospital, and other related facilities and services. A few days later, CYH announced the alliance had made a deal for Sharon Regional Health System, which consists of a 251-bed accredited hospital and 23 satellite centers around Sharon, Pennsylvania. Terms were not disclosed in either deal…..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
ObsEva, the Swiss-based specialty biopharma company focused on therapies for preterm labor, announced the closing of a $34.5 million Series A financing round. The round was led by Sofinnova Partners, and co-led by Sofinnova Ventures and Novo A/S. Concurrently, ObsEva signed a licensing deal with Merck Serono, the biopharmaceutical division of Merck KGaA, that will grant ObsEva worldwide development and commercialization rights to certain Merck Serono compounds in the field of preterm labor. Details of the deal were not disclosed, except that MS Ventures, the corporate venture capital fund of Merck Serono, has taken a minority equity stake in its new partner….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.
Infocast’s 6th Annual Healthcare Deal Making Summit: Find your strategies for success in the post-ACA world.
Infocast’s 6th Annual Healthcare Deal Making Summit 2013 will bring healthcare executives from today’s most innovative organizations together with leading investors and financial service providers to explore the business strategies, models and investments that will drive success in the post-Affordable Care Act world. They will discuss how changes to reimbursement models and healthcare reform are impacting M&A and deal-making, and how the movement to coordinated care will drive integration strategies and the effectiveness of business models. They will put a spotlight on some of today’s emerging business strategies, such as payer-provider convergence, strategic alignment, joint venturing and the next phase of integration, and healthcare transformation through technology innovation—and provide an outlook on their performance..
Go to http://www.infocastinc.com/healthcare13
Healthcare Facilities Symposium & Expo, October 1 – 3, 2013, Navy Pier, Chicago, IL
Collaborate. Transform. Deliver
The Healthcare Facilities Symposium & Expo is where industry leaders, from design firms to healthcare owners, come together for 3 days to share best practices, explore new concepts and discover products and solutions. The mission of the Symposium is to create a multi-disciplinary environment that inspires you to evoke change and the advancement of a better delivery of healthcare through the physical space. Competitors, clients, and colleagues come together as friends to collaborate, share research, hear fresh perspectives and participate in the ever changing conversation of your industry. Visit www.hcarefacilities.com/LA
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