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January 20, 2014 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
The Carlyle Group
Ortho-Clinical Diagnostics
$4.15 billion
Pharmaceuticals
Grupo Biotoscana SL
United Medical
N/A
Jazz Pharmaceuticals plc
Rights to ADX-N05
$125 million
Roche
Rights to LNA drugs
$10 million
Physician Medical Groups
Davita
Praxi mit Nähe
N/A
Technology Deal of the Week
Deal-making hasn’t abated in the The Carlyle Group (NASDAQ: CG) pays $4.15 billion for Johnson & Johnson’s (NYSE: JNJ) Ortho-Clinical Diagnostics (OCD) business, which operates in 130 countries. OCD is a global provider of solutions for screening, diagnosing, monitoring and confirming diseases. Equity for the transaction comes for Carlyle Partners VI, a $13 billion buyout fund that completed fundraising last November with 269 investors from 43 countries. Barclays and Goldman Sachs are acting as financial advisors to CG, and Latham & Watkins LLP is acting as legal advisor……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
December deal-making is often viewed as being as hectic as a shopping mall on Christmas Eve. But December 2013’s health care M&A results were something of a snoozer, compared with the year before. Overall deal volume dropped 21% compared with December 2012. Although the Technology sector—and Pharmaceuticals in particular—had a better month in 2013 (up 24% compared with Dec. 2012), deals in the Services sector cratered (down 45%). We’re still gathering our annual numbers, so stay tuned.
Deal Volume by Sector, December 2013 vs. December 2012
12/2013
12/2012
Sector
Deals
Deals
Change
Services
Behavioral Health Care
1
0
100.0%
Home Health & Hospice
2
3
-33.3%
Hospitals
4
10
-60.0%
Labs, MRI & Dialysis
1
3
-66.7%
Long-Term Care
21
30
-30.0%
Managed Care
1
0
100.0%
Physician Medical Groups
3
9
-66.7%
Rehabilitation
3
3
0.0%
Other
3
13
-76.9%
Services subtotal
39
71
-45.1%
Technology
Biotechnology
9
12
-25.0%
eHealth
5
7
-28.6%
Medical Devices
10
10
0.0%
Pharmaceuticals
22
8
175.0%
Technology subtotal
46
37
24.3%
Grand total
85
108
-21.3%
Source: Health Care M&A News, January 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
Capella Healthcare is selling Grandview Medical Center, a 70-bed hospital that serves five counties across Alabama, Georgia and Tennessee, to TriStar Health, a division of HCA (NYSE: HCA). The hospital will become part of the Parkridge Health System, which will grow to five facilities in the Chattanooga, Tennessee market. The transaction is expected to close in the first quarter of 2014. Terms of the deal were not disclosed…….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
Venture capital in medical device companies all but dried up last year, and some analysts predict the dearth of innovations will not be felt for another few years. So it was good news to hear that Ivantis, which developed the novel Hydrus® Microstent device that lowers eye pressure for glaucoma patients, announced it had received an additional $14 million in Series B funding, bringing the total to $46.5 million. The round includes new investors Ascension Ventures, Vertex Ventures, GBS Ventures, EDBI, and MemorialCare Innovation Fund, as well as returning investors NEA and Delphi Ventures……. 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.
Make your mark in corporate venturing this year at CVIP2014 on Feb. 10 – 12 in Newport Beach, CA
With less than a month until this regal event, there’s no time like the present to reserve your place among the top industry professionals and coveted thought leaders in the world of corporate venturing.
Don’t miss insights from these key players as we enter 2014:
George Whitesides, CEO & President – Virgin Galactic
Jamie McGurk, Partner Andreesen Horowitz
Sue Siegel, CEO – GE Ventures & healthymagination
Join us at the 16th Annual Corporate Venturing and Innovation Partnering Conference taking place on February 10-12, 2014 at The Island Hotel in Newport Beach, California!
For more details visit:
www.cvip2014.com
The Corporate Venturing and Innovation Partnering Conference offers corporate investors and business development executives a unique peer-to-peer opportunity to hear cutting-edge strategies, including insights on how corporate venturing programs are structured and best practices for gaining a competitive advantage through corporate venturing.
Upcoming Interactive Webcast:
Build or Join an ACO—Don’t Let The Opportunity Pass You By!
Thursday, January 23, 2014, 1:00 pm ET
A year ago, the Affordable Care Act directed doctors, hospitals, and other health-care providers—including long-term-care facilities—to coordinate care provided to Medicare patients through Accountable Care Organizations (ACOs). Timing can be tricky—urgent for post-acute care providers—and appropriate contracts are crucial. Go to http://www.levinassociates.com/conferences/1401-online-conference or call 800-248-1668 to register.
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