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July 21, 2014 Issue:
Recent Health Care M&A Deals
Hospitals
Acquirer
Target
Price
Community Health Systems, Inc.
Natchez Regional Medical Center
N/A
Pharmaceuticals
Mylan, Inc.
Specialty and branded
generics business
$5.3 billion
Pfizer Inc.
InnoPharma, Inc.
$225 million
Assembly Pharmaceuticals
Ventrus Biosciences
Merger
AbbVie
Shire
$54.7 billion
AbbVie and Shire Make It Official
Summer seems to be Tax Inversion season for U.S. pharmaceutical companies. Late last week Chicago-based AbbVie (NYSE: ABBV) finally won over Dublin-based Shire plc (NASDAQ: SHPG) with an increased offer of £32 billion, or $54.7 billion, that would allow AbbVie to move its headquarters to Ireland, land of the lower corporate tax rate. AbbVie, which was spun out of Abbott Laboratories (NYSE: ABT) 18 months ago, has relied on its arthritis drug, Humira, for revenue. Shire’s pipeline of expensive medicines that treat rare diseases make for a solid revenue stream once Humira loses U.S. patent protection in 2016. AbbVie plans to set up shop on Jersey, in the Channel Islands, where it will pay an effective tax rate of 13%, according to Reuters……….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.
What Hospitals and Health Systems Are Buying
The most frequent calls we get from the media are about hospital acquisitions, particularly when a hometown hospital announces it is looking for a partner or an acquirer. This week we decided to see what hospitals are buying in 2014. Of the 22 deals announced by hospitals and health systems so far this year, 19 of them were deals for other hospitals, two were for long-term care facilities and one was for an outpatient surgical center in McKinney, Texas, made by Methodist McKinney Hospital. Four deals were made by for-profit companies, 14 were from not-for-profit systems, and three were private hospitals. Here are the five deals made by the for-profits.
Transactions by Not-For-Profit Hospitals, through July 18
Acquirer
Target
Alameda Health System
Alameda Hospital
Atlantic Health System
Hackettstown Regional Medical Center
Beaumont Health System
Botsford Health Care and Oakwood Healthcare
Catholic Health Initiatives
Memorial Health System of East Texas
Centra
Bedford Memorial Hospital and rehab center
Gouverneur Hospital
E.J. Noble Hospital
Heartland Community Health Clinic
Sisters’ Community Health Care Center
Humility of Mary Health Partners
River Valley Health Partners
Major Hospital
Munster Med-Inn
Northwestern Memorial HealthCare
Cadence Health
Our Lady Health System
LSU Bogalusa Medical Center
Siskin Hospital
St. Barnabas Healthcare Center
VCU Health System
Community Memorial Healthcenter
Source: The Health Care M&A News, July 18, 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
Home Health Care Deals Keep Coming
We’ve noted that private equity firms are hot for home health & hospice companies, but it’s the public companies that seem to be buying. Last week, LHC Group (NASDAQ: LHCG) disclosed its acquisition of Life Care Home Health, a sister company of Life Care Centers of America, Inc. Life Care Home Health has 14 agencies across seven states, which brings LHCG’s geographical footprint to 352 locations across 30 states. The Ensign Group (NASDAQ: ENSG) announced two purchases last week. One was Namaste Hospice and Palliative Care Center, in Denver, Colorado, which will be operated by its Cornerstone Healthcare subsidiary. On the Long-Term Care side, Ensign bought the California-based Keiro Senior HealthCare portfolio, which consists of a 300-bed skilled nursing facility in Lincoln Heights, a 98-bed SNF in Gardena, a 127-unit assisted living community in Boyle Heights and a 90-bed intermediate care facility on the Boyle Heights campus. Overall occupancy is 94.5%………..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.
Pain Treatment Brings in $8 Million for Virobay
Virobay, Inc., a clinical stage pharmaceutical company with a platform of cathepsin protease inhibitors for the treatment of neuropathic pain, autoimmune disease and fibrosis, closed an expanded Series B second tranche financing of $8 million. That brings its total Series B fundraising to $18 million, including the first tranche which was raised in 2010. Participants in the second tranche include a syndicate of investors plus Perceptive Advisors, and existing investors TPG Biotechnology Partners, Alta Partners, Sutter Hill Ventures and AbbVie, Inc………..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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