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July 29, 2013 Issue:
Recent Health Care M&A Deals
Biotechnology
Acquirer
Target
Price
Celling Biosciences, LLC
OroGen BioSciences assets
N/A
Genesis Biopharma, Inc.
Lion Biotechnologies, Inc.
N/A
eHealth
Acquirer
Target
Price
Kareo, Inc.
ECCO Health
N/A
Hospitals
Acquirer
Target
Price
Graymark Healthcare Inc.
Foundation Surgical Hospital Affliates LLC
$51,235,000
Laboratories, MRI & Dialysis
Acquirer
Target
Price
DaVita
18 dialysis centers in Malaysia
N/A
Services Deal of the Week
Humana, Inc. (NYSE: HUM) announced it has signed a definitive agreement to acquire American Eldercare Inc. of Clearwater, Florida, the state’s largest provider in the Long Term Care Diversion Program (read: Medicaid). American Eldercare offers home health care, assisted living, skilled nursing, hospice, respite care and home-delivered meals, among other things. Terms of the deal were not disclosed. Humana believes American Eldercare’s revenues will increase to more than $1.0 billion in 2015, from approximately $75 million today. Good luck with that…..Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
Charted Territory
Merger and acquisition spend picked up significantly in the second quarter of this year, compared with the previous quarter. Deal value for Q2:13 hit $52.6 billion, up nearly 252%, versus just $14.9 billion spent in Q1:13. That increase was helped in large part by the 11 billion-dollar deals announced in the quarter. In fact, the top 10 deals accounted for 83% of that total, at more than $43.7 billion. Deal volume was up 10% over the previous quarter, with 223 deals announced. Look for our upcoming Health Care M&A Report, Second Quarter 2013 for more details.
Top 10 Health Care M&A Transactions in Q2:2013
Rank
Acquirer
Target
Price
1
Thermo Fisher Scientific Inc.
Life Technologies Corporation
$15.8 billion
2
Valeant Pharmaceuticals Int’l
Bausch + Lomb Holdings Inc.
$8.7 billion
3
Actavis, Inc.
Warner Chilcott plc
$8.5 billion
4
Tenet Healthcare Corporation
Vanguard Health Systems, Inc.
$4.3 billion
5
LifeLabs Medical Laboratories
CML HealthCare Inc.
$1.2 billion
6
Bayer HealthCare LLC
Conceptus, Inc.
$1.1 billion
7
EBOS Group Limited
Symbion
$1.1 billion
8
Health Care REIT
47 Revera properties in Canada
$1.0 billion
9
Catholic Health Initiatives
St. Luke’s Episcopal Health System
$1.0 billion
10
Roper Industries
Managed Health Care Associates
$1.0 billion
Source: Irving Levin Associates, Inc., June 2013
Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today
Technology Deal of the Week
Buyers are still circling cancer drug maker Onyx Pharmaceuticals Inc. (NASDAQ: ONXX), which rejected an unsolicited $8.7 billion bid from Amgen Inc. (NASDAQ: AMGN) on June 30, though none have made a counter offer. Amgen is still in the running, with an unsourced Reuters story on July 25 naming Bank of America, JPMorgan Chase & Co. and Barclays plc as its financiers for a renewed bid. Amgen’s first bid, at $120 per share, represented a 38% premium over the prior day’s closing. Since then, Onyx’s shares have topped $132, as of July 26, despite a downgrade by Deutsche Bank from Buy to Hold on July 22. AstraZeneca plc (NYSE: AZN), Novartis AG (SWX: NOVN) and Pfizer (NYSE: PFE) were all expected to place bids, but Reuters also reported that Pfizer has since decided not to move forward, and all mention of Novartis’s name in connection with Onyx has ended. The longer the dance goes on, the less excitement it arouses. ..Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
In the Pipeline
SynapDx Corporation, a next-gen diagnostics and informatics company focused on pediatric neurodevelopmental disorders, picked up $15.4 million in funding to support ongoing work on a blood-based diagnostic test for autism spectrum disorder. Google Ventures led the round, and was joined by Foundation Medical Partners as a new investor. Founding investors North Bridge Venture Partners and General Catalyst Partners also participated. SynapDx also announced the appointment of Google’s Andrew Conrad, PhD, former chief scientific officer of LabCorp and co-founder of its National Genetics Institute, to the company’s board of directors….Want to read more news? Click here for a free trial to The Health Care M&A Information Source and download the current issue today.
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Upcoming Interactive M&A Webcast:
Tax-Exempt Entities: Buying, Selling and Valuing
Wednesday, August 7th, 2013, 1:00 pm ET
The not-for-profit merger and acquisition market—specifically not-for-profit health care businesses that acquire other not-for-profit health care businesses—is rapidly and continually evolving. Not-for-profits typically raise capital in different fashions and from different sources than for-profit entities. Find out more from our expert panel: Glenn Fox (Moderator), Partner, Saul Ewing LLP; Charles Bissell, National Practice Leader, Seniors Housing & Health Care Practice, Integra Realty Resources; Joseph Lupica, Chairman, Newpoint Health; Jeff Petty, CEO, Wesley Enhanced Living; William Pomeranz, Managing Director, Cain Brothers.
Go to http://www.levinassociates.com/conferences/1308-online-conference or call 800-248-1668 to register.
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