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February 10, 2014 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
Smith & Nephew plc
ArthroCare Corp.
$1.5 billion
BioTelemetry Inc.
Mednet Healthcare Technologies
$16 million
Montagu Private Equity
Rexam PLC’s healthcare units
$805 million
Pharmaceuticals
Acquirer
Target
Price
Lupin Limited
Nanomi B.V.
N/A
Valeant Pharmaceuticals International, Inc.
Precision Dermatology, Inc.
$475 million
Technology Deal of the Week
Medical Device sector deals are gaining momentum, even if it’s slow. Last week Smith & Nephew plc (NYSE: SNN) announced it would acquire ArthroCare Corp. (NASDAQ: ARTC) for $48.25 per share in cash, or $1.7 billion plus the assumption of net cash. The purchase is part of Smith & Nephew’s long-term strategy to rebalance itself for growth, as the addition of ArthroCare creates a comprehensive resection and repair portfolio with “exciting” growth opportunities, not to mention new products into Smith & Nephew’s sales pipeline….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
Deal volume was decent for the first month of a new year. Even with the record set in January 2012 (119 deals), last month was the second-busiest for health care M&A in the past 10 years. Deal value, which is a less reliable indicator of investor interest, was also decent, totaling approximately $10.7 billion. Here’s to a decent start to a hopefully decent year.
Deal Volume by Sector, Jan. 2014 vs. Jan. 2013
1/2014
1/2013
Sector
deals
deals
change
Services
Behavioral Health Care
3
4
-25.0%
Home Health & Hospice
2
3
-33.3%
Hospitals
4
10
-60.0%
Labs, MRI & Dialysis
6
6
0.0%
Long-Term Care
13
13
0.0%
Managed Care
2
1
100.0%
Physician Medical Groups
3
6
-50.0%
Rehabilitation
0
1
-100.0%
Other
13
12
8.3%
Services subtotal
46
56
-17.9%
Technology
Biotechnology
15
6
150.0%
eHealth
7
7
0.0%
Medical Devices
12
11
9.1%
Pharmaceuticals
12
9
33.3%
Technology subtotal
46
33
39.4%
Grand total
92
89
3.4%
Source: Health Care M&A News, February 2014
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
Services Deal of the Week
BioScrip, Inc. (NASDAQ: BIOS) is selling Deaconess HomeCare to LHC Group Inc., (NASDAQ: LHCG), a national provider of post-acute care, for $60 million in cash. The transaction is the result of BioScrip’s shift away from home health care, toward infusion services. It is expected to close by April 2014 and be accretive to earnings in 2014…..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
The market is still good for early-stage biotech companies. Lumos Pharma just completed a $14 million Series A round to support the preclinical and clinical development of its lead compound, LUM-001, a small molecule therapeutic for the rare metabolic disease Creatine Transporter Deficiency. The round was co-led by Sante Ventures and New Enterprise Associates….. 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.
2nd Annual Financing Innovation and Technology in Healthcare Conference – Friday, March, 14, 2014
This conference serves as a 1-day “think tank” which convenes leading financiers, entrepreneurs, academicians, policy makers and executives in healthcare to share insights into the dynamics of financing innovation and technology in the post-reform area.
The conference experience is enriched through relevant topics, influential speakers and networking opportunities. Healthcare industry leaders will discuss the following topics through a series of engaging panel sessions:
* How investments in healthcare innovation and technology can strengthen the economies of metropolitan areas
* Opportunities and challenges facing the medical device industry
* “Big Data” in healthcare
* Accelerating innovation through continued public and private sector R&D investment
Hosted by Amicus Capital Partners, LLC and the University of Chicago Booth School of Business Alumni Association
The Union League Club of Chicago
65 West Jackson Boulevard
Chicago, IL
For more information and to register visit
http://www.amicuscp.com/financing-healthcare-technology-conference.html
NEW – The Health Care Services Acquisition Report, 20th Edition – Preorder Today!
Deals have been made. The 2014 Health Care Services Acquisition Report contains private deals in this market that are frequently too small to make into financial press. Take advantage of our limited 2-for-1 offer – Preorder The 2014 Health Services Care Acquisition Report by February 28th and receive The 2013 Health Care Services Acquisition Report FREE ($595 value)! Now that’s a deal! Go to http://www.levinassociates.com/landing/har20order or call 800-248-1668 to preorder today.
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