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November 25, 2013 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
Baxter
Rights to Pacritinib
$60 million
E-Health
Acquirer
Target
Price
Streamline Health Solutions, Inc.
SaaS solutions company
$6.5 million
Medical Devices
Acquirer
Target
Price
CareFusion Corp.
Vital Signs division
$500 million
Pharmaceuticals
Acquirer
Target
Price
Akorn, Inc.
Rights to 3 ophthalmic products
$52.8 million
Cardiome Pharma Corp.
Correvio LLC
$22 million
Technology Deal of the Week
Clovis Oncology, Inc. (NASDAQ: CLVS) of Boulder, Colorado made a $200 million bet on lucitanib, at least in upfront money and stock. Last week it agreed to buy the Italian biopharmaceutical company EOS (Ethical Oncology Science) S.p.A., which is at work developing a novel targeted therapy to treat cancer. The real target was EOS’ global rights (excluding China) to develop and commercialize lucitanib, a mid-stage cancer drug. If the FDA approves lucitanib, EOS will receive $65 million, and another $155 million for achieving certain milestones. EOS had already given the European and rest-of-world rights to Les Laboratoires Servier, and now Clovis could receive up to $470 million in milestones from Servier, not to mention royalties on lucitanib sales. Eventually. …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
Physician Medical Groups are another hot sector that appears to be heating up as the year winds down. While Q1:13 saw just 13 acquisitions announced, Q2:13 and Q3:13 reported 17 deals and 16 deals, respectively. We’re only about halfway through Q4:13, however, and already there have been 16 deals for 20 physician practices made public. While the top three publicly traded companies accounted for 38 of those transactions, six hospitals, three integrated health systems, two managed care companies and one private equity firm were also making deals. We don’t expect the pace to slack off before the end of the year, so stay tuned. Here are the five largest deals, to date:
Who’s Buying Physician Medical Groups in 2013, through Nov. 20th
Acquirer
Listing
Deals
MEDNAX, Inc.
NYSE: MD
10
IPC The Hospitalist Company
NASDAQ: IPMC
9
TeamHealth Holdings, Inc.
NYSE: TMH
9
Prospira PainCare, Inc.
Private
3
DermOne Dermatology Centers
Private
2
Source: The Health Care M&A News, November 20, 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
Newcastle Investment Corp. (NYSE: NCT) agreed to pay $1.01 billion to acquire a 52-property portfolio of senior housing properties from affiliates of Holiday Retirement, owned by Fortress Investment Group. The portfolio includes communities in 24 states that have a “complementary footprint” to Newcastle’s existing portfolio. Each master lease includes 26 properties, has a 17-year term and first-year rent equal to 6.5% of the purchase price, with annual increases during the following three years of 4.5% and then up to 3.75%….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
TriVascular, Inc., a medical device company focused on patients with aortic disease, announced the close of a $40 million Series E preferred stock equity financing last week. Existing investors New Enterprise Associates, Delphi Ventures, MPM Capital, Kearny Venture Partners, Kaiser Permanente Ventures and the Redmile Group were joined by new investors Deerfield Management, Rock Springs Capital and Permal Asset Management. Proceeds will be used to expand commercial efforts of its Ovation and Ovation Prime platforms worldwide and to fuel product pipeline and clinical research activities…. 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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Upcoming Interactive Webcast:
Technology and Senior Living: The Exciting Path Ahead
Thursday, December 12, 2013 at 1:00 p.m ET
As daunting as the constant changes in technology may appear, technological advances in the senior living/senior care sphere have been truly astonishing. Wireless communication has become ubiquitous, telehealth and telemedicine use has expanded, and non-invasive electronic sensors and warning systems keep seniors safe and healthy in their homes. The future of technology in the senior living/senior care environment, as presented by our panelists, is bound to be exciting…perhaps even amazing! Find out more from our expert panel.
Go to www.levinassociates.com/conferences/1312-online-conference or call 800-248-1668 to register.
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