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March 17, 2014 Issue:
Recent Health Care M&A Deals
Pharmaceuticals
Hanmi Pharmaceutical Co. Ltd.
Rights to MuGard
N/A
Vectura Group plc
Activaero GmbH
$181 million
Kythera Biopharmaceuticals, Inc.
Rights to ATX-101
$84 million
Physician Medical Groups
IPC The Hospitalists Company
CAP Medical Group, PLLC
N/A
Rehabilitation
NextImage Medical
WorkWell, Inc.
N/A
Technology Deal of the Week
There were a few foreign-based deals last week that were interesting, the largest being Vectura Group plc’s (LSE: VEC) $181 million acquisition of the German pharmaceutical company Activaero GmbH. The target is focused on developing treatments for respiratory diseases, and its proprietary product is a smart nebulizer-based technology known as FAVORITE (Flow And Volume Regulated Inhalation Technology), that allows drug deposition to targeted areas of the lung. Vectura, based in Chippenham, England, is a product development company focused on treatments for airways-related diseases, including asthma and COPD. ….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 have seen a steady stream of M&A activity in the past few years, with 70 deals announced in 2012 and 65 announced in 2013. That pace may be slowing, according to a few industry sources. Perhaps, but so far this year, we’ve recorded eight acquisitions of physicians’ practices that have been publicly announced. MEDNAX (NYSE: MD) is the clear front-runner with four deals, putting the company on track to rival the 11 deals it made in 2013. Two other serial acquirers from last year, TeamHealth (NYSE: TMH) and IPC The Hospitalist Company (NASDAQ: IPCM), have been very quiet, with only one acquisition from IPC. There are still nine months to go in this year, but we’ll be watching this trend.
Physician Medical Group Transactions in 2014, through March 14
Acquirer
Target
Date
MEDNAX, Inc.
Summit Anesthesia Associates, P.A.
January 2
DaVita
Praxis mit Nähe
January 13
MEDNAX, Inc.
Physicians Anesthesia Associates, P.A.
January 28
Extended Care Physicians
Network Geriatric Services
February 5
MEDNAX, Inc.
Great Lakes Associates, P.C.
February 24
Wellness Center USA, Inc.
National Pain Centers, Inc.
March 4
MEDNAX, Inc.
Piedmont Neonatology, P.C.
March 4
IPC The Hospitalist Co.
CAP Medical Group, PLLC
March 7
Source: The Health Care M&A News, March 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
The largest deal last week on the services side was the $103.8 million sale of three Balfour Senior Living communities to AEW Capital Management. This rather new portfolio includes a 103-unit independent living community built in 2004, an 87-unit independent living community built in 2008, and a campus with 62 assisted living beds, 28 memory care beds and 48 skilled nursing beds, built in 2009. The three properties, located in Louisville, Colorado, are contiguous. HFF represented the seller, and also placed $38 million of new mortgage debt with Cornerstone Real Estate Advisors………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
Sage Therapeutics of Cambridge, Massachusetts, has several things going for it. One is SAGE-547, a drug designed to treat a rare, life-threatening disease called super refractory status epilepticus, which has no known therapies. The company specializes in diseases of the central nervous system and has a few other treatments in development. Rare and orphan diseases are a big target area for pharmaceutical companies lately, so it’s not too surprising that Sage secured another $38 million Series C funding recently, to move SAGE-547 into Phase 1 and 2 studies. Arch Venture Partners and Third Rock Ventures added more to their earlier investment rounds, and new backers OrbiMed Advisors, EcoR1 Capital Management, Foresite Capital Management and two other anonymous funds joined the round. ……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.
National Healthcare CFO Summit, May 18-20, 2014, Eau Palm Beach Resort & Spa, Palm Beach, FL
The National Healthcare CFO Summit is the premium forum bringing together senior level finance executives and solution providers. The Summit offers an intimate environment for a focused discussion of key new drivers shaping the healthcare industry.
To gain a view at the event brochure, click here: http://www.nhcfosummit.com/NationalHealthcareCFO_HCDN
For information regarding speaking, sponsoring & attending, please contact Laurel Zevitz at
l.zevitz@marcusevansch.com
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