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September 16, 2013 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
Baxter International
FlowSense
$9.5 million
Pharmaceuticals
Acquirer
Target
Price
Isis Pharmaceuticals, Inc.
Biogen Idec
$100 million
Sorrento Therapeutics, Inc.
IgDraSol, Inc.
$28.2 million
Roche
Inovio Pharmaceuticals, Inc.
$10 million
AstraZeneca Plc
Rights to MK-1775
$50 million
Technology Deal of the Week
AstraZeneca plc (NYSE: AZN) beefed up its oncology pipeline even further through a licensing agreement with Merck & Co. Inc. (NYSE: MRK) for its oral small molecule inhibitor of WEE1 kinase (also known as MK-1775). AstraZeneca agreed to pay $50 million upfront, as well as future payments tied to development and regulatory milestones, plus sales-related payments and tiered royalties. AZN assumes responsibility for future clinical development, manufacturing and marketing—all activities related to those future milestone payments. MK-1775 is being evaluated in Phase2a clinical trials for the treatment of patients with P53-deficient ovarian cancer…..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
Last week we compared the number of health care transactions announced in August 2013 with those in August 2012. Now comes the money part. Of the 34 deals that came with disclosed prices, the combined total dollar volume in August was $13.6 billion, thanks to the $9.7 billion deal reached by Amgen, Inc. (NASDAQ: AMGN) for Onyx Pharmaceuticals (NASDAQ: ONXX). What’s notable about the top 10 deals listed below is that six of the 10 are for less than $300 million. Strategic, but not game-changing. Half of the deals were for Pharmaceutical targets, the sector that typically drives the dollar-volume needle upward.
Top 10 Health Care M&A Transactions in August 2013
Rank
Acquirer
Target
Price
1
Amgen, Inc.
Onyx Pharmaceuticals, Inc.
$9.7 billion
2
Akorn, Inc.
Hi-Tech Pharmacal Co., Inc.
$640 million
3
Catamaran Corp.
Restat, LLC
$409.5 million
4
STADA Arzneimittel AG
Thornton & Ross Ltd.
$342.7 million
5
Medical Properties Trust
3 IASIS Healthcare hospitals
$283.3 million
6
AstraZeneca plc
Amplimmune
$225 million
7
Endo Health Solutions
Boca Pharmacal
$225 million
8
Medtronic, INc.
Cardiocom
$200 million
9
Newcastle Investment Corp.
15 senior living communities
$200 million
10
C.R. Bard, Inc.
Medafor, Inc.
$200 million
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
Consolidation is in the air for privately held pharmacy benefits management (PBM) companies. Last month, Catamaran Corp. (NASDAQ: CTRX) paid $409.5 million for Restat, LLC, a Milwaukee, Wisconsin-based PBM formerly owned by the Dohmen family of companies, while TPG Capital, LP acquired Envision Pharmaceutical Services for an undisclosed price. Last week came word that Magellan Health Services Inc. (NASDAQ: MGLN) entered into an agreement to buy Partners Rx, a privately held PBM based in Scottsdale, Arizona, for an undisclosed price. Three other deals announced this summer have targeted privately held PBMs. We’re looking into this activity for the October issue of The Health Care M&A News….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
Early-round funding is tight for most medical device companies, but that didn’t occur to the investors in ALung Technologies, Inc., which last week announced it had raised $15.8 million in Series B-1 financing. With a name like ALung, you’ve probably guessed the company makes respiratory devices, and you’d be right. The proceeds will primarily support its ongoing global commercialization of the Hemolung Respiratory Assist System. It already has commercial operations in Germany, France and the U.K., and is working with distribution partners to enter other markets. Allos Ventures led the financing, with West Capital Partners, Birchmere Ventures, BlueTree Capital Group, PLSG Accelerator Fund, Smithfield Trust Company and several additional private investors. ALung took a bow in its announcement, pointing to the fact that this round is one of the largest so far this year in the Pittsburgh, Pennsylvania life sciences market. Cue the “Applause” sign!…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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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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