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January 6, 2014 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
AtriCure, Inc.
Estech
$34 million
Stryker Corporation
Patient Safety Technologies, Inc.
$120 million
Pharmaceuticals
Jazz Pharmaceuticals plc
Gentum S.p.A.
$1 billion
Shenzhen Hepalink Pharmaceutical Co., Ltd.
Scientific Protein Laboratories, LLC
$337.5 million
Physician Medical Groups
IPC The Hospitalist Company, Inc.
3 groups in MI and FL
N/A
Technology Deal of the Week
Medical device maker Stryker Corporation (NYSE: SYK) started off 2014 much the way it ended 2013: with another acquisition. On January 2, 2014, SYK announced a definitive agreement to acquire Patient Safety Technologies, Inc. (NASDAQ: PSTX) for $120 million, gaining its proprietary Safety-Sponge® System and SurgiCount 360™ compliance software. This deal comes on the heels of its $1.65 billion acquisition of MAKO Surgical Corp. (NASDAQ: MAKO), which closed on December 17. You may recall that last January, SYK paid $98.5 million for the Chinese orthopedics company, Trauson Holdings (HKSE: 325) and an undisclosed amount for certain non-core spinal implant technologies from Vertiflex Inc. in March. Here’s to a busy 2014 ……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
Pharmaceutical transactions dominated the Largest Deals List for the month of December, taking seven of the top 10 spots. The three outliers were Valeant Pharmaceuticals’ (NYSE: VRX) acquisition of medical device maker Solta Medical (NASDAQ: SLTM); Emergent BioSolutions’ (NYSE: EBS) deal for Canadian biotech company Cangene Corporation (TSX: CNJ.TO); and Centene Corporation’s (NYSE CNC) purchase of the privately held home health care company, U.S. Medical Management, LLC.
10 Largest Deals in December 2013
Acquirer
Target
Price
The Bayer Group
Algeta ASA
$2.9 billion
AstraZeneca plc
BMY’s global diabetes assets
$2.7 billion
Jazz Pharmaceuticals
Gentium
$1.0 billion
Covidien plc
Given Imaging Ltd.
$860 million
Shenzhen Hepalink Pharmaceuticals
Scientific Protein Laboratories
$337.5 million
Almirall, S.A.
Aqua Pharmaceutical Holdings
$327.6 million
Torrent Pharmaceuticals
Domestic formulations business
$320 million
Valeant Pharmaceuticals
Solta Medical
$250 million
Forest Laboratories
US rights to Saphris
$240 million
Emergent BioSolutions
Cangene Corporation
$222 million
Centene Corporation
U.S. Medical Management
$200 million
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
Aviv REIT, Inc. (NYSE: AVIV) closed two deals for four post-acute and skilled nursing facilities on December 23, for a total of $20 million. One of the SNFs is located in Texas and is triple-net leased to existing Aviv operator Fundamental Long Term Care, which operates 102 facilities in 13 states. The other three SNFs are located in Illinois and are triple-net leased to Bridgemark Healthcare, also an existing Aviv operator. The investments have a blended cash yield of 9.9%, annual escalators and initial lease terms of seven and 10 years, respectively…..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
The Biotechnology sector made up more than half of all IPO activity in 2013, which is more than all the IPO activity in the previous five years combined, according to the National Venture Capital Association (NVCA) and the Exit Poll by Thomson Reuters. A total of 377 VC-backed deals were announced in 2013, of which 82 were IPOs, the NVCA said. Of the 90 that came with disclosed values, the total deal value was $14.5 billion, with an average deal size of $161.4 million. And they’re hoping for more activity in 2014, of course…… 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.
2nd Annual Financing Innovation and Technology in Healthcare Conference – Friday, March, 14, 2014
This conference serves as a 1-day “think tank” which convenes leading financiers, entrepreneurs, academicians, policy makers and executives in healthcare to share insights into the dynamics of financing innovation and technology in the post-reform area.
The conference experience is enriched through relevant topics, influential speakers and networking opportunities. Healthcare industry leaders will discuss the following topics through a series of engaging panel sessions:
* How investments in healthcare innovation and technology can strengthen the economies of metropolitan areas
* Opportunities and challenges facing the medical device industry
* “Big Data” in healthcare
* Accelerating innovation through continued public and private sector R&D investment
Hosted by Amicus Capital Partners, LLC and the University of Chicago Booth School of Business Alumni Association
The Union League Club of Chicago
65 West Jackson Boulevard
Chicago, IL
For more information and to register visit
http://www.amicuscp.com/financing-healthcare-technology-conference.html
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