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October 7, 2013 Issue:
Recent Health Care M&A Deals
Pharmaceuticals
Acquirer
Target
Price
Cambridge Major Laboratories, Inc.
AAIPharma Services Corp.
Merger
Stratus Media Group, Inc.
Two Biopharmaceutical Companies
Merger
Amneal Pharmaceuticals, LLC
Four Generic Products
N/A
Physician Medical Groups
Acquirer
Target
Price
Physicians Realty Trust
Crescent City Surgical Center Facility, LLC
$37.5 million
Rehabilitation
Acquirer
Target
Price
Kindred Healthcare
TherEX, Inc.
$14 million
Technology Deal of the Week
Last week MAKO Surgical Corp. (NASDAQ: MAKO) was in the news as an acquisition target, when it agreed to a $1.65 billion deal with Stryker Corporation (NYSE: SYK). This week, MAKO made news with its acquisition of Pipeline Biomedical Holdings, Inc. for approximately $6.45 million in the form of a $2.5 million cash payment and issuance of 3.95 million shares of common stock. Pipeline has been instrumental in developing and supplying advanced implant technologies for MAKO’s RIO® Robotic-Arm Interactive Orthopedic system, which is what attracted Stryker…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
Deal volume held steady in September, compared with September 2012. A slight dip in volume for the services sector (down 2.2% vs. a year ago) was made up in the technology sector (up 20.7%) for a 6.6% increase overall. That’s not much to cheer about, though, if you consider that in the third quarter last year, M&A activity slowed considerably, down 15% compared with Q2:12 deal volume. We’re pulling together data for Q3:13 and will be reporting on the results in a few weeks. Stay tuned.
Deal Volume by Sector, September 2013 vs. September 2012
9/2013
9/2012
deals
deals
% change
Services
Behavioral Health Care
2
1
100.0%
Home Health & Hospice
3
2
50.0%
Hospitals
7
5
40.0%
Labs, MRI & Dialysis
3
4
-25.0%
Long-Term Care
16
18
-11.1%
Managed Care
1
3
-66.7%
Physician Medical Groups
4
2
100.0%
Rehabilitation
3
0
300.0%
Other
7
12
-41.7%
Services subtotal
46
47
-2.1%
Technology
Biotechnology
9
10
-10.0%
eHealth
5
10
-50.0%
Medical Devices
6
5
20.0%
Pharmaceuticals
15
4
275.0%
Technology subtotal
35
29
20.7%
Grand total
81
76
6.6%
Source: Health Care M&A News, October 2013
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Services Deal of the Week
Two weeks ago we noted the “surge” of deals in the Rehabilitation sector, and you’ll note there were three announced in September. The third and final one was announced on September 30th, by Kindred Healthcare (NYSE: KND). The company purchased TherEX, Inc. for $14 million. TherEx provides on-site, hospital-based rehabilitation services in 11 states. It fits well with Kindred’s RehabCare division, which specializes in partnering with hospitals to manage inpatient and outpatient rehab services….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
This is more about the pipeline, not what’s in it. Frazier Healthcare, which invests in emerging healthcare service and biotech companies, announced it has closed its seventh healthcare fund, Frazier Healthcare VII. The big news was that the fund surpassed its target of $300 million by $77 million from existing limited partners and a few new 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.
IMN’s Healthcare Provider Technology M&A Forum, Oct. 22, NYC
IMN is proud to introduce the inaugural Healthcare Provider Technology M&A Forum, taking place October 22, in New York City. This unique and compelling program will bring together a large number of technology vendors with strategic & financial buyers and their financial intermediaries to examine the gamut of issues and opportunities – legal, financial, cultural, strategic – throughout the transaction lifecycle. Confirmed speakers include: Michael Kluger (ALTARIS CAPITAL PARTNERS), Steve Wiggins (ESSEX WOODLANDS), Mohit Kaushal (ABERDARE VENTURES), Brad Brooks (TIGERTEXT), David Tamburri (HEALTH ENTERPRISE PARTNERS), Jonathan Lujan (SIS), and Rob Cosinuke (ATHENAHEALTH). Visit http://www.imn.org/healthcare-it/conference/Healthcare-Technology-Mergers-Acquisitions-Forum/Home.html for more information.
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