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April 28, 2014 Issue:
Recent Health Care M&A Deals
Laboratories, MRI and Dialysis
Acquirer
Target
Price
DaVita Kidney Care
Three hemodialysis centers
N/A
Medical Devices
Zimmer Holdings Inc.
Biomet, Inc.
$13.35 billion
NOVADAQ Technologies Inc.
Aimago SA
$10 million
Pharmaceuticals
Novartis Corporation
GlaxoSmithKline oncology business
$16 million
Endo International plc
Sumavel DosePro
$85 million
Technology Deal of the Week
Pharmaceutical deals made headlines last week, as Swiss drug maker Novartis AG (NYSE: NVS) announced on April 22 that it was trading its vaccine business to GlaxoSmithKline plc (NYSE: GSK) in exchange for GSK’s oncology drug business. Novartis agreed to pay $16 billion cash to GSK, of which $1.5 billion is contingent on the results of a Phase 3 trial. GSK agreed to pay Novartis $5.25 billion, plus up to $1.8 billion in milestones. Two other unsolicited deals went un-done, but it’s a lead-pipe cinch we’ll hear more about them. Pfizer (NYSE: PFE) reportedly made a $101 billion offer for AstraZeneca plc (NYSE: AZN), which was rebuffed, while serial acquirer Valeant Pharmaceuticals International (NYSE: VRX) made a $45 billion offer for Allergan, Inc. (NYSE: AGN). Allergan’s board immediately adopted a poison pill to ward off further advances, but this isn’t over………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
Private equity groups are back in action this year, in a big way. Through April 25, they’ve spent approximately $6.9 billion on 22 announced deals. This time last year, PE firms had spent only $654 million on 14 announced deals. Of course, this year’s total is boosted by the $4.15 billion deal from The Carlyle Group (NASDAQ: CG) for Johnson & Johnson’s (NYSE: JNJ) Ortho-Clinical Diagnostics division, but even without that deal, there’s still $2.7 billion on the table. Here are the top five acquisitions by PE firms, through April 22, 2014.
Top Five Health Care Deals by Private Equity Groups, Jan. – April, 2014
Acquirer
Target
Price
The Carlyle Group
Ortho-Clinical Diagnostics, Inc.
$4.15 billion
Cinven
Medpace, Inc.
$915 million
Montagu Private Equity
Rexam plc’s healthcare units
$805 million
Buyer consortium
Chindex International, Inc.
$461 million
Kayne Anderson Real Estate
Conservatory Senior Living portfolio
$290 million
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
The services sector was fairly quiet last week, as all the hoopla went on around the technology space. Still, DaVita Kidney Care, a division of DaVita HealthCare Partners Inc. (NYSE: DVA) announced it had acquired three hemodialysis centers from Malaysian dialysis provider Sinar Indentiti Sbn Bhd. Terms were not disclosed. The acquisition brings DaVita’s presence to 24 clinics across peninsular and east Malaysia. Kidney disease is a growing health concern, as the Malaysian Society of Nephrology reports the population of patients receiving dialysis treatment has grown nearly 12% year-over-year, to 30,000…….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
A medical device company announced the completion of its Series B financing last week, which is notable because medical device startups are having a hard time getting angel investors to take notice. Guardant Health of Redwood City, California closed its Series B round with more than $30 million, to support the continued commercial expansion of its Guardant360 non-invasive tumor sequencing test. The round was led by Khosla Ventures, which was joined by Sequoia Capital and new investor Pejman Mar Ventures……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.
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