Healthcare M&A for 2004

FOR IMMEDIATE RELEASE
Stephen M. Monroe, Partner
Sanford B. Steever, Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com
Health Care Merger And Acquisition Activity Strong In First Quarter Of 2006, According To Irving Levin Associates, Inc.
NORWALK, CT – April 18, 2006 – According to a new Report from Irving Levin Associates, a total of 221 mergers and acquisitions were announced in the health care industry during the first quarter of 2006. This figure is virtually level with the 223 deals announced in the prior quarter, Q4:05. Further, based on preliminary figures, a total of $39.3 billion was committed to fund this M&A activity.
The Health Care M&A Market
First Quarter 2006
Dollar Amounts By Sector*
Sector
Dollar Amount
First Quarter 2006
Percent of  Quarter
Long-Term Care
$     1,730,000,000
4%
Home Health Care
493,800,000
1%
Labs, MRI, Dialysis
466,750,000
1%
Managed Care
100,100,000
<1% Hospitals 80,600,000 <1% Physician Medical Groups 67,000,000 <1% Behavioral Health Care 41,800,000 <1% Rehabilitation 0 <1% Other Services 1,450,000,000 4%    Services subtotal $     4,430,050,000 11% Pharmaceuticals $   26,300,000,000 67% Medical Devices 6,760,000,000 17% Biotechnology 1,450,000,000 4% e-Health 365,000,000 <1%    Technology subtotal $   34,875,000,000 89%       Total health care $   39,305,050,000 100% *Preliminary figures “As in recent quarters, the majority of M&A dollars—89% this quarter—were spent in the four health care technology sectors we cover: Biotechnology, e-Health, Medical Devices and Pharmaceuticals,” observed Stephen M. Monroe, Managing Editor at Irving Levin Associates. “The quarter produced four billion-dollar deals, worth a combined total of $26.8 billion, or 68% of the total amount committed during the quarter. All four were in the technology segment, with three in Pharmaceuticals and one in Medical Devices.” “The Pharmaceutical sector saw strong M&A activity in the first quarter, particularly among specialty and niche companies in Europe, as mid-size companies seek to build the critical mass that will make them more competitive in an already competitive sector,” observed Sanford Steever, Ph.D., editor of the Report.   The Health Care M&A Market Q1:06 Deal Volume By Sector   Sector Q1:06 Deals* Q4:05 Deals %Change Q1:05 Deals %Change Services:     Long-Term Care 26 40 -35% 28 -7% Physician Medical Groups 14 7 +100% 12 +17% Laboratories, MRI, Dialysis 11 7 +57% 10 +10% Home Health 10 17 -41% 19 -47% Hospitals 10 12 -17% 9 +11% Managed Care 9 4 +125% 7 +29% Behavioral Health 3 9 -67% 5 -40% Rehabilitation 1 2 -50% 2 -50% Other 32 29 +10% 34 -6% Services Subtotal 116 127 -9% 126 -8% Technology:     Pharmaceuticals 36 30 +20% 32 +12% Medical Devices 34 28 +21% 43 -21% Biotechnology 23 25 -8% 40 -43% e-Health 12 13 -8% 22 -45% Technology Subtotal 105 96 +9% 137 -23%     Grand Total 221 223 -1% 263 -16% *Preliminary figures  The health care services sectors generated greater deal volume than the technology sectors, but it was technology deals that captured the lion’s share of dollars committed to the health care M&A market. “Bayer’s $20 billion acquisition of Schering AG, proposed in March, indicates that the Pharmaceutical industry will continue to lead the health care M&A market. Among the service sectors, facility-based industries, such as Long-Term Care, will also see high levels of activity,” stated Mr. Monroe. For more information on The Health Care M&A Report, or for a subscription to any Irving Levin publication, call 800-248-1668. Irving Levin Associates, Inc., established in 1948, has its headquarters in Norwalk, CT and is online at www.levinassociates.com. This privately held corporation publishes research reports and newsletters, and maintains merger and acquisition databases, on the health care and senior housing markets. Click here to get more information on any of our Publications. Back to top