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September 15, 2014 Issue:
Recent Health Care M&A Deals
Acquirer
Target
Price
Hospitals
Catholic Health Initiatives
Sylvania Franciscan Health
Merger
Ochsner Health System
River Parishes Hospital
N/A
Advocate Health Care
NorthShore University HealthSystem
Merger
Medical Devices
Breas Medical
B&D Eletromechanical, Ltd.
N/A
Cynosure, Inc.
Ellman International, Inc.
$13.2 milion
Mylan Grabs U.S. Rights to Arixtra
Aspen Global Incorporated, the privately held South African drug giant, sold the U.S. rights to Arixtra Injection and its authorized generic form to Mylan Ireland Limited, a subsidiary of Mylan, Inc. (NASDAQ: MYL). The price was $225 million for the drug that treats deep vein thrombosis (DVT), which may lead to pulmonary embolism in patients undergoing certain surgical procedures. Arixtra and its generic has U.S. sales of approximately $18.8 million and $95.3 million, respectively, for the 12 months ended June 30, 2014, according to IMS Health.
Hospital M&A Activity in 2014
Last year was a blowout for the Hospital sector, by spending, anyway. Of the 84 deals announced, just 27 disclosed a price. But the total was more than $18.6 billion. Hospital transactions dried up in the early part of 2014 (although three were announced last week). Just 26 deals have come to light this year, and spending is barely over $1 billion for the five deals that disclosed prices. There’s still time left for some blockbuster deals in 2014, but it’s unlikely we’ll see another year like 2013 so soon.
Top 5 Hospital Deals thru September 15, 2014
Acquirer
Target
Price
Duke LifePoint Healthcare
Conemaugh Health System
$500 million
Buyer consortium
Chindex International, Inc.
$461 million
Duke LifePoint Healthcare
Wilson Medical Center
$96 million
Physicians Realty Trust
Foundation Surgical Center
$18.9 million
Via Christi Health
Mercy Regional Health Center
$7 million
Source: The Health Care M&A Information Source, September 12, 2014
Hospital Deals Are Back
After a long drought for hospital deal making, last week turned into a gusher, of sorts. Only two Hospital deals were announced in the entire month of August. We now have three to report in September, announced in the space of three days. The largest merger is between two Chicago-area not-for-profits, Advocate Health Care and NorthShore University HealthSystem. Once completed, it will have 16 hospitals and be renamed Advocate NorthShore Health Partners. Catholic Health Initiatives has agreed to take over Sylvania Franciscan Health, which has seven hospitals, seven long-term care facilities and urgent care clinics in Kentucky, Ohio and Texas. And Louisiana’s Ochsner Health System agreed to acquire River Parishes Hospital from LifePoint Hospitals (NASDAQ: LPNT) and turn it into an outpatient facility. Ochsner’s nearby acute-care hospitals will pick up the slack, they expect.
Small eHealth Companies Still Attracting Investors
In the wake of Apple’s (NASDAQ: AAPL) big unveiling of two iPhone 6s, the Apple Pay system, its Health app and the Apple Watch, we’re definitely feeling overdosed on big eHealth news. So it was nice to note that Keas, which makes and markets a corporate wellness platform that includes games and goals and what looks like a FitBit, raised $7.4 million, according to an SEC filing. Previous investors in the company include Atlantic Ventures and Ignition Partners. It counts several large companies—such as Pfizer (NYSE: PFE), Salesforce.com Inc. (NYSE: CRM) and Target (NYSE: TGT)—as customers. ………Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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