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Week ending January 12, 2015:
Recent Health Care M&A Deals
Acquirer
Target
Price
Biotechnology
Roche
Foundation Medicine, Inc.
$780 million
Roche
Rights to OP0595
N/A
Biogen Idec
Covergence Pharmaceuticals
$200 million
Merck & Co.
Moderna Therapeutics collaboration
$100 million
Intrexon and Ziopharm Oncology
License to MD Anderson technologies
$100 million
Amarantus BioScience Holdings, Inc
DioGenix, Inc.
$8.9 million
Biotech’s Big Month
With the JP Morgan Healthcare Summit attracting so many dealmakers to San Francisco last week, it isn’t surprising that biotech deals dominated the headlines. At least 10 deals were announced since January 11, the day before the conference began, with $1.9 billion in disclosed prices. Biogen Idec (NASDAQ: BIIB) made a splash with its $200 million deal for Convergence Pharmaceuticals, but was quickly upstaged by Roche’s (SIX: RO) $780 million investment in Foundation Medicine, Inc., a molecular information company backed by Third Rock Ventures, Kleiner Perkins Caufield & Byers and Google Ventures. Nice exit, all.
Biggest Health Care M&A Spenders in 2014
Biopharmaceutical companies dominated the list of biggest spenders in 2014, as pharmaceutical companies slimmed down in some areas and bulked up in others. Medical device maker Medtronic (NYSE: MDT) was the only buyer to break into the club, thanks mainly to its $43 billion deal for Covidien plc (NYSE: COV). Actavis plc (NYSE: ACT) made news last January with its $25 billion purchase of Forest Labs (NYSE: FRX), but that only got the ball rolling, as they say.
Top Acquirers in 2014, by Total Spending
Acquirer
Deals
Total
Actavis plc
5
$91.8 billion
Medtronic Inc.
5
$43.7 billion
Merck & Co.
8
$30.5 billion
Novartis Corp.
3
$16.2 billion
Bayer AG
3
$14.3 billion
Roche
7
$9.1 billion
Source: The Health Care M&A Information Source, January 2015
Hospital Deals Warming Up in 2015
Okay, five deals doesn’t sound like much after we count 15 biotech deals in the first two weeks of January. But the five transactions we’ve logged so far have that sector on track to match last January’s total of eight deals. On the books so far: TriHealth buying McCullough-Hyde Memorial Hospital for $17 million; Conemaugh Health System acquiring Nason Hospital for $12 million; Ascension Health Michigan taking on Crittenton Hospital Medical Center; Stony Brook University Hospital added Southampton Hospital; and over in India, Apollo Health & Lifestyle Ltd. paying an undisclosed amount for Nova Specialty Hospitals. This could be a busy year.
Biotech VC Investing Sets New Record in 2014
A report from PricewaterhouseCoopers confirms what we already know. Venture capital investment poured into biotech companies last year (they combine biotechnology and medical devices). According to PwC, VC financing grew 29% in 2014, to $6 billion, while the number of deals actually dropped, down 4% to 470. That still tops the previous record set in 2008 with $8.6 billion invested in 789 deals. And all those startups and development-stage companies are hoping for even bigger money in 2015, which could mean M&A growth. We’ll keep an eye out. ………….Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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