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December 9, 2013 Issue:
Recent Health Care M&A Deals
Behavioral Health Care
Acquirer
Target
Price
Accelera Innovations, Inc.
Behavorial Health Care Associates, Ltd.
$4.5 million
Biotechnology
Acquirer
Target
Price
Celgene Corporation
Rights to Anti-Cancer Therapeutics
$155 million
E-Health
Acquirer
Target
Price
Healthix
The Brooklyn Health Information Exchange
Merger
Laboratories, MRI and Dialysis
Acquirer
Target
Price
Ultrasound Now
Diagnostic Healthcare
Merger
Medical Devices
Acquirer
Target
Price
HeartWare International
CircuLite, Inc.
$30 million
Technology Deal of the Week
As pharmaceutical companies slash their R&D budgets, biotechs are profiting. Last week, all three major deals in the Biotechnology sector were for the rights to specific therapies. The largest was Celgene’s (NASDAQ: CELG) $155 million collaboration with OncoMed Pharmaceuticals (NASDAQ: OMED) to develop and commercialize up to six anti-cancer stem cell product candidates. If successful, Celgene gets an exclusive option on OncoMed’s most advanced clinical candidate, demcizumab, which is currently in Phase 1b studies…..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
What a difference a year didn’t make. That’s what it looks like, comparing health care M&A in November 2013 with deals announced a year ago. Both months posted a total of 88 deals. The only difference is that the Services side had fewer deals and the Technology side had more than the year before. Deal volume is a more reliable measure of the market’s strength than deal value, but we can’t help but note that the November 2013 total hit $18.5 billion, compared with just $4.7 billion a year earlier. Now that’s robust.
Health Care Deals by Sector, Nov. 2013 vs. Nov. 2012
11/2013
11/2012
Sector
Deals
Deals
Change
Services
Behavioral Health Care
1
3
-66.7%
Home Health & Hospice
6
3
100.0%
Hospitals
5
9
-44.4%
Labs, MRI & Dialysis
1
4
-75.0%
Long-Term Care
17
17
0.0%
Managed Care
2
3
-33.3%
Physician Medical Groups
7
6
16.7%
Rehabilitation
1
1
0.0%
Other
6
11
-45.5%
Services subtotal
46
57
-19.3%
Technology
Biotechnology
12
6
100.0%
eHealth
11
7
57.1%
Medical Devices
7
11
-36.4%
Pharmaceuticals
12
7
71.4%
Technology subtotal
42
31
35.5%
Grand total
88
88
0.0%
Source: The Health Care M&A News, December 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
We’re seeing more and more interest in Behavioral Health Care. Last week Accelera Innovations, Inc. announced its $4.5 million acquisition of Behavioral Health Care Associates, Ltd. of Schaumburg, Illinois. BHCA will be operated by Accelera Healthcare Management Service Organization. BCHA provides in-house psychiatric evaluations, medication management, comprehensive lab services and billing, practice management and administrative services to doctors and other clinicians…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-stage funding may be hard to come by in the Medical Devices space, but the Biotech crowd just rolls on. One Series B financing for $22 million caught our attention thanks to the company name, PaxVax Inc., and its company description. It does the usual development and commercializing of vaccines against infectious diseases, but “in a socially responsible manner.” Its lead drug candidate, PXVX0200, is a single-dose oral cholera vaccine that has just begun Phase 3 clinical trials in the U.S., Australia and Canada, and has been granted Fast Track status by the FDA. The financing was led by Ignition Growth and joined by another investor, Ignition Ventures, as well as new investors including Blue Haven Initiative…. 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.
Healthcare M&A Markets, Trends, Opportunities, Covered at iiBIG’s Annual Forum
Join senior-level healthcare finance executives, entrepreneurs, and investors for iiBIG’s 6th Annual Investment and M&A Opportunities in Healthcare conference, scheduled for January 27-28, 2014 at the Music City Center in Nashville, Tennessee. This year conference will cover latest in state of the healthcare M&A markets today and beyond 2014; private investing; roll-ups and mergers in the clinical research sector; middle market financing trends; the role of technology in healthcare M&A; investment opportunities and challenges in medicinal marijuana; distressed M&A opportunities; payer/provider convergence – implications of the trend toward IDNs (Integrated Delivery Networks); valuations, regulatory compliance, due diligence and more; and the “Healthcare Entrepreneur Roundtable” – growing through acquisitions and strategic partnerships. For more information, visit http://www.iibig.com/HealthcareMA or contact info@iibig.com.
11th Annual World Health Care Congress (WHCC), April 7 -9, 2014, National Harbor, MD
The 11th Annual World Health Care Congress (WHCC), taking place April 7 -9, 2014 in National Harbor, MD (just outside of Washington, DC) convenes decision makers from all sectors of health care with the shared goal of improving quality, outcomes, and access while reducing costs. The nation’s leading organizations rely on WHCC as their annual meeting place for the discussions, collaborations, and strategies that catalyze change in the health care industry. For more information or to register, please visit www.worldhealthcarecongress.com or call 800-767-9499. Mention promo code: KBJ779 and save $200 off your registration fee.
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