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May 19, 2014 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
Boston Scientific Corp.
Bayer Interventional div.
$415 million
Pharmaceuticals
Akorn, Inc.
VersaPharm Incorporated
$440 million
Santen Pharmaceutical Co.
Merck ophthalmology assets
$600 million
Pernix Therapeutics
U.S. rights to Treximet®
$250 million
Physician Medical Groups
IPC The Hospitalist Company
RG Psychological Services
N/A
Technology Deal of the Week
Boston Scientific Corp. (NYSE: BSX) is on a roll this month. On May 6, the company acquired IoGyn, Inc., a California startup focused on products used in gynecological surgery, for $65 million. Last week it announced a larger transaction, paying $415 million in cash for Bayer Interventional division (XETRA: BAYN), based in Minneapolis, Minnesota. Bayer Interventional offers technologies to treat coronary and peripheral vascular disease, and it will be tucked into Boston Scientific’s Peripheral Interventions business. Last year, BSX made only one acquisition (publicly announced), the $275 million purchase of Bard EP (NYSE: BCR) for $275 million………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
While most of the media is focused on Pfizer’s (NYSE: PFE) bid for AstraZeneca (NYSE: AZN), Merck & Co. (NYSE: MRK) has been selling assets like it’s going out of business. Just this year, it has raked in $15 billion, thanks largely to the $14.2 billion sale of its OTC business to Bayer AG (XETRA: BAYN), announced this month. Since 2002, we’ve captured a total of 27 deals for Merck assets, including the rights to various drugs or compounds, totally about $17.6 billion. By contrast, Merck has paid more than $53 billion for other companies and compounds, since 2000. And several of those deals came without prices, such as its sole 2014 acquisition of NanoBio’s nanoemulsion technology. We’re expecting something bigger from Merck, coming soon. Stay tuned.
Merck & Co. Divestitures, 2009 to 2014
Acquirer
Merck & Co. business
Price
Date
Santen Pharmaceutical Co.
Ophthalmology assets
$600 million
May 13, 2014
KBI Biopharma, Inc.
Microbial operations
N/A
May 13, 2014
Bayer AG
OTC business
$14.2 billion
May 6, 2014
Alnylam Pharmaceuticals
Sirna Therapeutics, Inc.
$175 million
Jan. 12, 2014
Aspen Group
API business
$1.0 billion
June 27, 2013
Johnson & Johnson, Inc.
Stake in OTC business
$175 million
Sept. 28, 2011
FujiFilm Holdings
BioManufacturing Network
$490 million
Feb. 27, 2011
Covance, Inc.
Gene expression laboratory
$9.75 million
July 29, 2009
Microsoft Corporation
Rosetts Biosoftware
N/A
June 1, 2009
Source: The Health Care M&A News, May 2014
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Services Deal of the Week
It’s not a done deal, but last week Kindred Healthcare (NYSE: KND) launched a hostile takeover of Gentiva Health Services (NASDAQ: GTIV). The offer includes a combination of $7 per share in cash plus $7 in KND stock for each share of Gentiva, valued at approximately $533 million, and assumption of Gentiva’s debt, which brings the total to $1.6 billion. Kindred made its pursuit public after Gentiva rejected its overtures, noting that its offer represents a 64% premium to GTIV’s May 14 closing price, and 8.9x 2014E EBITDA. Gentiva, a home health care company, made one acquisition last year, buying Harden Healthcare Holdings for $409 million. Kindred, on the other hand, made nine acquisitions in 2013, five of them privately held home health care companies (so no prices were disclosed)…….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
New York City-based Flatiron Health, which developed the OncologyCloud™ platform, raised $130 million for its Series B round, led by Google Ventures, with participation from existing investors First Round Capital and Laboratory Corporation of America Holdings. At the same time, Flatiron agreed to acquire Altos Solutions, Inc., a leading web-based oncology software company and developer of the OncoEMR® system, for an undisclosed price. The two companies expect to finalize the transaction by the end of May 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.
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