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August 25, 2014 Issue:
Recent Health Care M&A Deals
eHealth
Acquirer
Target
Price
MedAssets, Inc.
SG-2, LLC
$142 million
MEDNAX, Inc.
MedData, Inc.
N/A
Physician Medical Groups
The CORE Institute
Arizona Neurological Institute
Merger
Other
Recipharm
Corvette Pharmaceutical Service Group
$160 million
Another Acquisition for Covidien
Covidien plc (NYSE: COV) isn’t sitting still, waiting for its own acquisition by Medtronic (NYSE: MDT) to close. Last week the Dublin-based medical device maker acquired Reverse Medical Corporation, a privately held med dev maker focused on expanding the management of vascular disease. Financial terms were not disclosed. This marks the company’s third acquisition this year, following its $100 million deal for Florida-based New Wave Surgical in April and Zephyr Technology Corp. of Annapolis, Maryland in May for an undisclosed price.
What’s the Average Price of a Pharma Deal?
It’s no secret that pharmaceutical transactions have pumped up the M&A volume this year. It’s only August, and they’ve already set a new record for deal value, at $156.7 billion as of August 22. We checked our database to find out the average annual price per pharma transaction (based on the number of deals with prices). The previous record was set in 2009, at $1.5 billion per deal. Welcome to 2014’s present record of $2 billion per deal. Of course, there are still four months to go, and we may see a string of deals without disclosed prices. But we’re not counting on that happening.
Average Price per Pharmaceutical Transaction, 2009 to 2014*
Year
Deals
Deals w/
Prices
Total
Average Price
2009
138
95
$147 billion
$1,548,653,128
2010
137
104
$39.8 billion
$383,148,750
2011
115
89
$44 billion
$495,992,645
2012
103
78
$38 billion
$487,908,804
2013
149
107
$66 billion
$620,930,104
2014*
122
73
$156.7 billion
$2,147,460,212
* = through August 22. Source: The Health Care M&A Information Source, August 2014
Private Equity Firms Buy California Cryobank
Longitude Venture Partners II, LP and NovaQuest Pharma Opportunities Fund III, LP got together to purchase California Cryobank, Inc., provider of reproductive tissue donor services and storage, and stem-cell banking. The bank’s reproductive division is the largest provider of anonymous donor sperm services and private reproductive tissue storage. In keeping with the bank’s confidentiality agreements, no price was disclosed, although the deal was financed through a combination of equity contributed by Longitude and NovaQuest and debt provided by Golub Capital. Harris Williams & Co. advised CCB on this transaction.
HealthPrize Closes Its First Round Financing
HealthPrize Technologies, maker of digital health solutions for medication adherence and patient engagement, has closed its first institutional financing of $3 million, led by Mansa Capital. Mansa has a right to increase its investment by an additional $2 million through July 31, 2015. HealthPrize creates and manages customized digital patient engagement and adherence programs across diverse medical conditions and demographic groups. Its current customers are global pharmaceutical companies, and it plans to expand into other healthcare verticals, such as the payer and retail pharmacy markets………..Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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