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Week ending February 6, 2015:
Recent Health Care M&A Deals
Acquirer
Target
Price
eHealth
athenahealth, Inc.
webOMR
N/A
Roper Industries Inc.
2 medical software companies
N/A
Other Services
ICON plc
MediMedia Pharma Solutions
$120 million
Vision Acquisition, LLC
LCA-Vision
$40 million
VHA, Inc.
UHC
Merger
Surgery Partners
Delaware Outpatient Center for Surgery
N/A
Big Pharma Deals Are Back on Track
After a rather quiet January, M&A in the pharmaceutical sector picked up last week with the announcement of Pfizer’s (NYSE: PFE) $16 billion acquisition of Hospira Inc. (NYSE: HSP), maker of injectables and infusion technologies, as well as biosimilars. The move surprised some industry watchers, who were expecting a far larger deal in the wake of Pfizer’s failed bid for AstraZeneca (NYSE: AZN) last year. The same day, AstraZeneca announced its purchase of the U.S. and Canadian rights to Actavis plc’s (NYSE: ACT) branded respiratory drugs, Tudorza™ Pressair™, a twice-daily long-acting treatment for chronic pulmonary disease, and Daliresp®, the once-daily oral PDE4 inhibitor.
Physician Medical Group M&A Picks Up
Mergers and acquisitions in the Physician Medical Group sector dipped in 2014, even as other health care services showed strong growth. Acquisitions were off 9%, for an annual total of 59, compared with 65 in all of 2013. Through February 5, however, nine deals have been announced, which outpaces the six recorded in the same period last year. The mega-deals we saw last year—between AmSurg (NASDAQ: AMSG) and Sheridan Healthcare for $2.4 billion, for example—are beginning to bear fruit. Stay tuned.
2015 Physician Medical Group M&A, through February 6
Acquirer
Target
Date
Alexian Brothers Health System
The Medical Care Group
February 5
Envision Healthcare Holdings
Emergency Medical Associates
January 13
Envision Healthcare Holdings
Scottsdale Emergency Associates
January 13
Independent Physicians Collaborative
8 Cincinnati-area physician groups
January 28
IPC Healthcare, Inc.
Select assets of Hospitalists Now
January 30
MEDNAX, Inc.
Metropolitan Anesthesia Alliance, PLLC
January 5
MEDNAX, Inc.
MEMAC Associates, PC
January 30
Sheridan
Radisphere Corporation
Janaury 21
U.S. Anesthesia Partners, Inc.
Anesthesia Consultants of Dallas
January 22
Source: The Health Care M&A Information Source, February 6, 2015
Rehabilitation M&A Gains Strength
For a sector that posted only 19 transactions in 2014, Rehabilitation deals are strengthening in 2015. Through the first week of February, we’ve counted four acquisitions. The two most recent ones were announced last week, as U.S. Physical Therapy (NYSE: USPH) paid $7.2 million for a majority interest in an unidentified, nine-clinic practice, and HealthSouth Corporation (NYSE: HLS) made its second acquisition in three months, buying Cardinal Hill Rehabilitation Hospital from the Kentucky Easter Seal Society, Inc. Cardinal Hill is licensed for 158 inpatient rehab beds and 74 skilled nursing beds.
Third Rock Ventures Launches Revolution Medicines
Third Rock Ventures, LLC last week introduced its very own pharmaceutical startup, Revolution Medicines, Inc., with a $45 million Series A financing. The company’s mission is to discover and develop new therapies derived from natural products. Its first drug candidates “exploit and improve” on amphotericin B, a powerful, broad-spectrum antifungal compound that has avoided generating significant drug resistance in 50 years of clinical use. Up till now, too much of this good thing would result in kidney damage, among other side effects. They’ve got their work cut out for them. ……………..Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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