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September 9, 2013 Issue:
Recent Health Care M&A Deals
Hospitals
Acquirer
Target
Price
Physicians Realty Trust
El Paso Surgical Center and Medical Office Building
$40 million
Medical Devices
Acquirer
Target
Price
C.R. Bard Inc.
Rochester Medical, Inc.
$262 million
Pharmaceuticals
Acquirer
Target
Price
Meda AB
Acton Pharmaceuticals, Inc.
$135 million
Okana Ventures Inc.
Rights to FACTIVE
$3.4 million
Otsuka Pharmaceutical
Astex Pharmaceuticals
$886 million
Technology Deal of the Week
C. R. Bard, Inc. (NYSE: BCR), which just last month announced a $200 million deal for Medafor, Inc., announced it will acquire Rochester Medical Corporation (NASDAQ: ROCM), maker of disposable medical catheters and devices for urological and continence care applications, for a price of $20 per share, or approximately $262 million. The price per share represents a 37% premium over ROCM’s average closing price during the 90 trading days ended September 3, 2013. The transaction is expected to close in the fourth quarter of 2013. Piper Jaffray & Co. served as exclusive financial advisor to ROCM and provided a fairness opinion to the company’s board of directors. Dorsey and Whitney LLP served as counsel to ROCM….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
Everyone and everything seems to take a break in the month of August, and that was certainly the case this year. Health care mergers and acquisitions slowed to a crawl, even compared with August 2012. Health care services deals dropped 18.8% in August 2013, compared with the year before, from 48 announced deals to just 39. Health care technology deals were only slightly off last year’s not-so-blistering pace, down 11.5% to just 23 deals. Overall, health care M&A last month was off 16.2% compared with a year ago, and (using more data from our database) shows a 26.2% drop compared with an atypically robust July 2013. Predictions about Q3:13 deal-making would be premature, as the Labor Day holiday came early this year (September 2), and September has gotten off to a slower-than-usual start. Stay tuned.
Deal Volume by Sector, August 2013 vs. August 2012
8/2013
8/2012
Sector
deals
deals
% change
Services
Behavioral Health Care
0
1
-100.0%
Home Health & Hospice
0
4
-100.0%
Hospitals
5
5
0.0%
Labs, MRI & Dialysis
4
6
-33.3%
Long-Term Care
17
21
-19.0%
Managed Care
1
2
-50.0%
Physician Medical Groups
4
2
100.0%
Rehabilitation
0
1
-100.0%
Other
8
6
33.3%
Services subtotal
39
48
-18.8%
Technology
Biotechnology
5
6
-16.7%
eHealth
5
6
-16.7%
Medical Devices
4
7
-42.9%
Pharmaceuticals
9
7
28.6%
Technology subtotal
23
26
-11.5%
Grand total
62
74
-16.2%
Source: Irving Levin Associates, Inc., September 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
Deal-making in the Home Health & Hospice sector was dormant in August, but M&A activity picked up last week with the announcement that Cigna (NYSE: CI) completed its acquisition of Alegis Care, a portfolio company of Triton Pacific Capital Partners. Alegis Care is a multi-specialty medical health services organization dedicated to creating a comfortable medical home experience for homebound Medicare and Medicaid patients. This year it will provide services to nearly 31,000 seniors in 10 states and the District of Columbia. Terms of the deal were not disclosed…..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
iPierian, Inc. scored $30 million in a new round of financing that will continue to advance its drug development in neurodegenerative disease, as well as provide a Series A round to launch a spin-out company, True North Therapeutics. The financing was co-led by SR One; Kleiner Perkins Caulfield & Byers; and MPM Capital, with participation from all existing iPierian investors. iPierian will focus on drug development for the treatment of tauopathies, including Alzheimer’s disease, while True North Therapeutics will focus on complement pathway drug development for rare diseases driven by auto-antibodies……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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