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July 14, 2014 Issue:
Recent Health Care M&A Deals
Managed Care
Acquirer
Target
Price
LTC Financial Partners
LTC Global Marketing
Merger
Medical Devices
ABIOMED Inc.
ECP
$13 million
Thoratec Corporation
Apica Cardiovascular
$35 million
Pharmaceuticals
HealthCare Royalty Partners
Royalty and milestone rights
to Orenitram
$30 million
Baxter International Inc.
AesRx, LLC
N/A
Salix Pharmaceuticals Goes for a Tax Inversion
Salix Pharmaceuticals (NASDAQ: SLXP), currently based in Raleigh, North Carolina, has made a deal with the Italian drug maker Cosmo Pharmaceuticals S.p.A. (SIX: COPN) to acquire its subsidiary, Cosmo Technologies Ltd. for about $2.7 billion. Both Salix and Cosmo Tech are focused on treating gastrointestinal diseases, but because Cosmo is based in Ireland, Salix gains a new domicile, and a cheaper corporate tax rate. Under the terms of the agreement, Salix will become a wholly owned subsidiary of Cosmo Tech, which will change its name to Salix Pharmaceuticals plc…………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.
Second Quarter Healthcare Deals Explode
The second quarter of 2014 is already one for the record books. Healthcare deals totaled 297, which isn’t a record (Q2:11 had 336 deals). Healthcare dollar volume topped $135 billion – and that is a record for any second quarter. It’s also a 171% increase over Q1:14 dollar volume, of $49.9 billion. Deal volume in the technology sector surged 31%, to 143 deals, while the services sector stayed flat, at 154 deals. July has started out quickly, too, so we could be in for a blistering summer in the healthcare market.
Deal Volume, Q2:14 vs. Q1: 14
Q2:14
Q1:14
Sector
Deals
Deals
% change
Services
Behavioral Health Care
7
5
40.0%
Home Health & Hospice
14
15
-6.7%
Hospitals
9
13
-30.8%
Labs, MRI & Dialysis
7
11
-36.4%
Long-Term Care
60
63
-4.8%
Managed Care
8
5
60.0%
Physician Medical Groups
15
13
15.4%
Rehabilitation
6
2
200%
Other
28
28
0%
Services subtotal
154
155
-0.6%
Technology
Biotechnology
34
26
30.8%
eHealth
28
21
33.3%
Medical Devices
31
27
14.8%
Pharmaceuticals
50
35
42.9%
Technology subtotal
143
109
31.2%
Grand total
297
264
12.5%
Source: The Health Care M&A News, July 2014
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China’s CITIC Capital Buys U.S. Dental Firm DDS LAB
CITIC Capital Partners, the Hong Kong-based private equity arm of CITIC Capital Holdings Ltd., acquired DDS LAB LLC, a U.S. dental laboratory in Tampa, Florida. Terms were not disclosed, but CITIC Capital’s preferred deal size is between $30 million and $50 million, according to Reuters. CITIC Capital partners with California-based buyout firm Blue Sea Capital and DDS management to acquire the business. Moelis & Co. was financial advisor to DDS……….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.
Boston Scientific Invests $15 Million in Mvalve
Boston Scientific Corporation (NYSE: BSX) invested $15 million in Israeli medical device maker, Mvalve, and obtained an option to acquire the company for $200 million, according to Globes, the online Israeli business media. The attraction for BSX is Mvalve’s still-in-development product to repair leak in the mitral heart valve……….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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