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Week ending April 3, 2015:
Recent Health Care M&A Deals
Acquirer
Target
Price
Biotechnology
Fujifilm Holdings Corp.
Cellular Dynamics International
$307 million
Novartis
Collaboration with Aduro Biotech
$225 million
RedHill Biopharma Ltd.
Global rights to ABC294640
$1.5 million
Other Services
OptumRx
Catamaran Corp.
$12.8 billion
Medtronic plc
Diabeter
N/A
Teva Acquires Auspex for its Molecules
Teva Pharmaceuticals Industries (NYSE: TEVA) boasts that it has a portfolio of more than 1,000 molecules, which it uses to produce a wide range of generic products. Last week, the company decided it needed a few more molecules, so it agreed to pay $3.2 billion ($101 per share in cash) for Auspex Pharmaceuticals (NASDAQ: ASPX), which has 61 molecules aimed at various diseases of the central nervous system. Of course, there was a special molecule that attracted Teva: SD-809, which reported positive results from its Phase 3 clinical trial last year, as a treatment for Huntington’s disease.
Another Record Falls in Q1:15
Now that the month is officially over, we can report our preliminary Q1:15 results—and it was another record breaker, at least for transactions. The 346 deals logged so far are 109% higher than the first quarter of 2014. You would think that the $104.7 billion in combined spending would set another record, but no. In Q1:09, we tracked $127.2 billion spent on 202 deals. That’s when Pfizer (NYSE: PFE) bought Wyeth for $68 billion. Here’s the preliminary breakdown of Q1:15 — and remember, the spending is only for deals that disclosed prices.
Preliminary Results for Q1:15 Health Care M&A
Sector
Deals
Dollars
Behavioral Health
8
$83.1 billion
Biotechnology
61
$35.1 billion
eHealth
26
$153.3 million
Home Health & Hospice
16
$138.5 million
Hospitals
23
$692.8 million
Labs, MRI & Dialysis
4
$70.0 million
Long-Term Care
55
$1.6 billion
Managed Care
10
$15.0 million
Medical Devices
23
$5.3 billion
Pharmaceuticals
42
$39.9 billion
Physician Medical Groups
21
0
Rehabilitation
8
$7.2 million
Other Services
49
$21.6 billon
Source: The Health Care M&A Information Source, April 2, 2015
Catamaran Sails into OptumRx’s Harbor
As the free-standing pharmacy care business of UnitedHealth Group (NYSE: UNH), OptumRx has serious backing when the right target comes along. Last week, the right one came along in the form of Catamaran Corporation (NASDAQ: CTRX), the nation’s fourth-largest provider of pharmacy benefit management services and healthcare information technology solutions. The offer was $61.50 per share, or approximately $12.8 billion. The deal leaves No. 1 pharmacy benefits provider Express Scripts Holdings (NASDAQ: ESRX) as the last holdout in the field, and some analysts are cheering for a major pharmacy retail chain to make an offer. Don’t look at Rite Aid (NYSE: RAD), though. It just paid $2 billion for EnvisionRx in February.
Ambry Genetics Completes Itself with Progeny
Privately held Ambry Genetics, a clinical genetic diagnostics laboratory, wasn’t joking around when it acquired Progeny Software, LLC on April 1. Progeny Software has spent the last 15 years enhancing its software to manage all types of genetic data, from pedigrees, providing genotype management and analysis, or providing a full laboratory information management system (LIMS). The combination, for an undisclosed price, gives Ambry the ammo to call itself a complete genetics services company “on the forefront of personalized medicine.” Don’t say we didn’t warn you. …………………..Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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