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January 13, 2014 Issue:
Recent Health Care M&A Deals
Behavioral Health Care
Acquirer
Target
Price
Acadia Healthcare Company, Inc.
Highline Medical Center
$20 million
Acadia Healthcare Company, Inc.
Riverside Center for Behavioral Medicine
$10.5 million
Biotechnology
Cocrystal Discovery, Inc.
Biozone Pharmaceuticals, Inc.
Merger
Portage Biotech Inc.
Biohaven Pharmaceutical Holding Company Ltd
$3.5 million
Biogen Idec
Treatments for blood disorders
$20 million
RSV Corporation
Virosome Vaccine Technology
$82 million
Technology Deal of the Week
The Pharmaceutical sector saw a flurry of M&A activity at the end of 2013, and the pace hasn’t slowed in 2014. Last week Forest Laboratories, Inc. (NYSE: FRX) announced its agreement to acquire Aptalis, a specialty pharma company that focuses on gastrointestinal and cystic fibrosis treatments, for $2.9 billion in cash. Sellers include TPG, the global private investment firm. Debevoise & Plimpton LLP and Cleary Gottlieb Steen & Hamilton LLP served as Forest’s legal counsel, and Aptalis was advised by Ropes & Gray. Morgan Stanley acted as financial advisor to Forest, while J.P. Morgan Securities LLC acted as financial advisors to Aptalis……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
Preliminary data on Q4:13 M&A activity shows, well, a mixed bag between the Services and Technology sectors, compared with the third quarter. Deal volume on the Technology side increased 21% over Q3:13 performance, while the Services side saw a 6% decrease in deal volume.
Deal Volume by Sector, Q4:13 vs. Q3:13
Q4:13
Q3:13
Sector
Deals
Deals
Change
Services
Behavioral Health Care
2
2
0.0%
Home Health & Hospice
10
5
100.0%
Hospitals
22
24
-8.3%
Labs, MRI & Dialysis
8
8
0.0%
Long-Term Care
65
61
6.6%
Managed Care
4
5
100.0%
Physician Medical Groups
20
15
33.3%
Rehabilitation
6
4
50.0%
Other
14
37
-62.2%
Services subtotal
151
161
-6.2%
Technology
Biotechnology
30
25
20.0%
eHealth
24
17
41.2%
Medical Devices
30
23
30.4%
Pharmaceuticals
48
44
9.1%
Technology subtotal
132
109
21.1%
Grand total
283
270
4.8%
Source: The Health Care M&A News, January 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
Services Deal of the Week
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) is at it again, announcing two more acquisitions. Effective December 1, 2013, ACHC completed the purchase of an acute inpatient psychiatric facility from Highline Medical Center in Seattle, Washington for $20 million in cash. The facility has a certificate of need for 135 beds and currently operates just 63 inpatient psychiatric beds. Acadia is adding 22 inpatient beds and will transition another 50 beds from other uses upon the expiration of third-party leases at the end of 2014. The second transaction, for $10.5 million in cash, involved the Riverside Center for Behavioral Medicine, a 68-bed acute inpatient psychiatric facility in Riverside, California. That deal closed on January 1, 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.
In the Pipeline
Big Data analytics is a mainstream topic, thanks to the National Security Agency’s data gathering efforts. But as last Friday’s Wall Street Journal pointed out, even the NSA needs help sorting through the trillions of bytes it’s managed to store. So when a data analytics startup decides to focus on life sciences, its prospects may seem daunting. Those worries didn’t deter Kleiner Perkins Caulfield & Byers and Jafco Ventures from co-leading a $15 million round of funding for Zephyr Health, a data analyzer that not only integrates data but uses proprietary applications to sort through life sciences clinical trial data, for example. This round will go toward boosting Zephyr’s engineering capabilities and sales and marketing operations……. 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.
SuperInvestor U.S. 2014, February 3-5, 2014, San Francisco
Over 300 powerful investors and industry experts from across the private equity & venture capital landscape will gather at SuperInvestor U.S. in San Francisco in February 2014. Make sure you join them for 3 days of networking and high-level debate on the burning questions of private equity investing including micro-VC, portfolio company interviews, family office views and the outlook for public pension funds.
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Upcoming Interactive Webcast:
Build or Join an ACO—Don’t Let The Opportunity Pass You By!
Thursday, January 23, 2014, 1:00 pm ET
A year ago, the Affordable Care Act directed doctors, hospitals, and other health-care providers—including long-term-care facilities—to coordinate care provided to Medicare patients through Accountable Care Organizations (ACOs). Timing can be tricky—urgent for post-acute care providers—and appropriate contracts are crucial. Go to http://www.levinassociates.com/conferences/1401-online-conference or call 800-248-1668 to register.
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