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Week ending July 17, 2015:
Recent Healthcare M&A Deals
Hospitals
Acquirer
Target
Price
Barnabas Health
Robert Wood Johnson Health System
Merger
Yale New Haven Health System
L+M Healthcare
Merger
Laboratories, MRI & Dialysis
Alere Inc.
US Diagnostics
$60 million
Rehabilitation
Phoenix Rehabilitation and Health Services, Inc.
Advanced Center for Physical Therapy
N/A
Celgene Continues Its Buying Spree
Celgene Corporation (NASDAQ: CELG) made yet another major acquisition last week, picking up Receptos, Inc. (NASDAQ: RCPT) for $7.2 billion. The acquisition significantly boosts Celgene’s Inflammation and Immunology portfolio with the addition of Receptos’ lead product candidate, Ozanimod, which is in Phase 3 tests to treat immune-inflammatory indications in irritable bowel syndrome and relapsing multiple sclerosis. This is Celgene’s biggest deal in 2015, out of the six it has announced. So far, the drug maker has splurged nearly $8.8 billion on acquisitions, collaborations with other drug makers and licensing deals.
Q2:15 Hospital M&A Stayed Active
Hospital mergers and acquisitions didn’t flag in the second quarter of 2015, with at least 23 “definitive agreements” signed. That’s equal to the 23 recorded in the first quarter of the year. (We wait until hospital transactions get that far in the process, because so many fall apart after they sign a letter of intent.) Ventas Inc.’s (NYSE: VTR) $1.75 billion acquisition of Ardent Health Services was the biggest deal of the quarter, followed by Ventas’ expected spin-off of Ardent’s hospital operations to Equity Group Investments, LLC for $475 million. Watch for The Health Care M&A Report, Second Quarter 2015 to be published next week.
Top Five Hospital Deals in Q2:15
Acquirer
Target
Price
Ventas, Inc.
Ardent Health Services
$1.75 billion
Equity Group Investments, LLC
Ardent’s hospital operations
$475 million
LifePoint Health
Watertown Regional Medical Center
$100 million
Adventist Health
Lodi Health
$100 million
Spectrum Health
Pennock Health Services
$56 million
Source: The Health Care M&A Information Source, July 17, 2015
Long-Term Care Deals Still Piling Up
Last week, eight more acquisitions were announced in the Long-Term Care sector, bringing the total to 22 transactions for July, so far. That’s a stronger pace than we’ve seen in recent months. The deal total for the seven deals that disclosed prices was just $220 million, about one-half of the $456 million spent on LTC acquisitions in July. In the second quarter of 2015, there were 64 publicly announced acquisitions in the seniors housing and care market, compared with 62 transactions in the year-ago quarter and 70 transactions in the first quarter of 2015. For second quarter activity, the 64 deals represent a record and implies we may be in for another strong second half of the year, much like in 2014. For the first half of the year, transaction volume is up 5.5% over the first half of 2014.
Molina Healthcare Steps Up Its Game
The big buzz in the Managed Care sector is the $37 billion bid from Aetna (NYSE: AET) for Humana Inc. (NYSE: HUM), of course. While that deal is lauded for the Medicare assets it brings to Aetna, Molina Healthcare (NYSE: MOH) continues to beef up on Medicaid assets. Last week it announced two deals, one for the Medicaid assets of MyCare Chicago covering approximately 61,000 enrollees in Cook County, Illinois. The other was for Preferred Medical Plan’s Medicaid assets, serving approximately 25,000 enrollees. These deals come on the heels of its acquisition in May of HealthPlus of Michigan’s MIChild contract, with around 6,000 patients, and the Medicaid contract of HealthPlus Partners, numbering around 90,000 Medicaid patients…………………………..Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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