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November 18, 2013 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
Terumo Corporation
GADA Turkey
N/A
Pharmaceuticals
Acquirer
Target
Price
Eisai Inc.
Worldwide rights to Belviq
$60 million
Salix Pharmaceuticals, Ltd.
Santarus, Inc.
$2.6 billion
Shire plc
ViroPharma Incorporated
$4.2 billion
Physician Medical Groups
Acquirer
Target
Price
TeamHealth Holdings Inc.
Wolverine Anesthesia Consultants
N/A
Technology Deal of the Week
Hands down, the largest deal of the week was Shire plc’s (NASDAQ: SHPG) $4.2 billion offer for ViroPharma Incorporated (NASDAQ: VPHM), a biopharmaceutical focused on rare and orphan diseases. The price offered equals $50 per share in cash, representing a 27% premium to ViroPharma’s closing price on November 8th. Shire expects annual cost synergies between its Firazyr product and ViroPharma’s Cinryze brand to come to $150 million by 2015. Goldman, Sachs & Co. is acting as financial advisor to ViroPharma, while Skadden, Arps, Slate, Meagher & Flom is acting as legal counsel on the deal. Lazard and Morgan Stanley are acting as joint financial advisors to Shire, and Davis Polk & Wardwell LLP is acting as its legal advisor…..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
Home is where the heart is, and it’s where the health care acquirers are focused, as well. So far this year there have been 32 deals announced in the Home Health & Hospice sector, with five added just in November alone. That makes this month the second-busiest for the Home Health sector, following April’s seven transactions. Deal value, for the nine deals that disclosed prices, has reached $881 million through November 15th. With only six and a half weeks left in the year, we’re sure to see more action in this sector as hospitals and other healthcare providers seek to extend their services in the post-acute arena. Here are the five largest deals, to date:
Top 5 Health Care M&A Transactions in Home Health & Hospice Care
Acquirer
Target
Price
Gentiva Health Services
Harden Healthcare Holdings
$408.8 million
BioScrip, Inc.
CarePoint Partners Holdings
$223.0 million
Kindred Healthcare, Inc.
Senior Home Care, Inc.
$95.0 million
Almost Family, Inc.
SunCrest HealthCare
$75.5 million
Mears
ILS
$34.4 million
Source: Health Care M&A News, November 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
Health insurance has made headlines this month, even in the M&A space. Last week, Lovelace Health System of Albuquerque, New Mexico, announced it was selling its Lovelace Health Plan (LHP) to Health Care Service Corporation, through its affiliate Blue Cross and Blue Shield of New Mexico. The transaction is expected to close by December 31. The transaction was “the logical next step” after LHP wasn’t chosen to remain part of the New Mexico Medicaid managed care program, Centennial Care, earlier this year. LHP lost 84,000 members as a result…..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
With so many major pharma companies cutting back on R&D spending, it isn’t surprising to see VC money going into startups. Last week Catabasis Pharmaceuticals, Inc. announced it had completed a $32.4 million Series B financing round led by new investor Lightstone Ventures. A leading public crossover fund and all current Catabasis investors, including SV Life Sciences, Clarus Ventures, MedImmune Ventures and Advanced Technology Ventures, also participated in the financing. The proceeds will go to support the development of its lead compound, CAT-2003, a modulator of the lipid synthesis pathway, which is currently in a Phase 2 clinical trial in patients with hypertriglyceridemia and in combination with statins in patients with hypercholesterolemia….. 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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