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April 21, 2014 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
NeoStem, Inc.
California Stem Cell
$34.112 million
Techne Corporation
PrimeGene Bio-Tech Co.
N/A
E-Health
MEGAS LLC
Unicor Medical Inc.
Merger
Orange Health Solutions
MZI HealthCare
N/A
Medical Devices
Abiomed, Inc.
License for fiber optic sensors
N/A
Technology Deal of the Week
Orphan diseases are attracting a lot of attention from pharma companies in recent years. Last week BioAlliance Pharma SA (Paris: BIO), which specializes in developing drugs targeting orphan oncology diseases, announced a merger agreement with the Scandanavian biopharmaceutical company Topotarget A/S (NASDAQ: TOPO). Under terms of the agreement, BioAlliance will continue to trade under its own name and shares in Topotarget can be exchanged to the effect that Topotarget shareholders will receive two newly issued shares in BioAlliance for every 27 Topotarget shares held. Existing BioAlliance shareholders will hold approximately two-thirds of the merger company, to Topotarget shareholders’ one-third………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
Deal volume in the first quarter was a little soft compared with the last quarter of 2013. But that’s to be expected, since there’s usually a rush to close transactions before the end of the year. The first quarter of 2014 proved to be better than the year-ago first quarter, which isn’t saying a lot. Our preliminary data show Q1:14 dollar volume at $49.6 billion, which is 11% better than Q4:13’s $44.7 billion. That’s the benefit of having a deal for $25 billion announced in the first quarter. Take that one deal out, and the numbers look very different. But still better than Q1:13, which only posted $15.6 billion in total spending.
Deal Volume by Sector, Q1:14 vs. Q4:13 and Q1:13
Q1:14
Q4:13
Q1:13
Sector
Deals
Deals
Change
Deals
Change
Services
Behavioral Health Care
3
2
50%
7
-57%
Home Health & Hospice
6
10
-40%
9
-33%
Hospitals
12
17
-29%
21
-43%
Labs, MRI & Dialysis
11
9
22%
9
22%
Long-Term Care
60
65
-8%
44
36%
Managed Care
5
4
25%
2
150%
Physician Medical Groups
10
20
-50%
13
-23%
Rehabilitation
2
6
-67%
2
0%
Other
27
15
80%
24
13%
Services subtotal
136
148
-8%
131
4%
Technology
Biotechnology
26
30
-13%
12
117%
eHealth
19
24
-21%
16
19%
Medical Devices
25
30
-17%
25
0%
Pharmaceuticals
33
46
-28%
28
18%
Technology subtotal
103
130
-21%
81
27%
Grand total
239
278
-14%
212
13%
Source: The Health Care M&A News, April 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
Hardly a week goes by that another deal for a contract research organization (CRO) doesn’t pop up. Last week’s announcement was from Arsenal Capital Partners, the New York-based private equity firm that already owned Certara, a drug development and drug safety consultancy in St. Louis, Missouri. Arsenal just acquired Synchrogenix Information Strategies Inc., a specialty CRO in Wilmington, Delaware, and merged it with Certara. The combined company will offer Certara’s preclinical and clinical pharmacology customers end-to-end drug development consulting and writing services, including preparation of regulatory submissions to the Food and Drug Administration. And we all know what a headache that is……..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 M&A market for eHealth companies is still slow, but wait a few years. Then all eHealth will break loose as the venture capital companies that just poured about $858 million into the healthcare IT sector in Q1:14 will be ready to sell. According to Mercom Capital Group, LLC, that record level of spending went to 163 deals in the quarter, up 154% compared with the $337 million raised in the previous quarter. On the healthcare practice side, VC firms committed $460 million to 60 deal. Practice Management technology companies raked in $124 million in eight deals, Health Information Exchange companies received $78 million in two deals and Data Analytics had $43 million in seven deals…..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.
American Society of Appraisers Healthcare Special Interest Group – Valuation Conference
A blockbuster faculty lineup has been announced for the upcoming American Society of Appraisers Healthcare Special Interest Group (ASA HSIG) two-day healthcare valuation conference, to be held in St. Louis, MO, April 25-26, 2014. This in-person course session is part of ASA HSIG’s Multidisciplinary Advanced Education in Healthcare Valuation Program. Those completing the ASA HSIG Program are eligible to receive a “Certificate of Completion,” Register for the St. Louis in-person course session online or 800-272-8258.
NEW – The Health Care Services Acquisition Report, 20th Edition – Order Today!
Deals have been made. The 2014 Health Care Services Acquisition Report contains private deals in this market that are frequently too small to make into financial press. Order by April 30th and get our Senior Care M&A Market Review and 2014 Outlook webcast for FREE ($147 value). Now that’s a deal! Go to http://www.levinassociates.com/landing/har20order or call 800-248-1668 to preorder today.
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