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April 15, 2013 Issue:
Recent Health Care M&A Deals
Behavioral Health Care
Acquirer
Target
Price
Acadia Healthcare
Two Psychiatric Facilities
$91.8 million
Biotechnology
Acquirer
Target
Price
Origene Technologies, Inc.
Life Science business of SDIX
N/A
Rockland Pharmaceuticals
Epi-Plus Product Line
N/A
Laboratories, MRI and Dialysis
Acquirer
Target
Price
SleepMed, Inc.
Watermark Medical, Inc.
Merger
Other
Acquirer
Target
Price
Ajinomoto Co., Inc.
Althea Technologies
$175 million
Service Deal of the Week
Acadia Healthcare Company, always on the acquisition path, announced on April 5 that it has acquired two acute inpatient psychiatric facilities, the 108-bed San Juan Capestrano Hospital in San Juan, Puerto Rico, and 75-bed facility that is still under construction in Tampa, Florida. The San Juan hospital has a certificate of need for an additional 100 beds, and was sold by Capestrano Investment Company, Inc. The Florida property is scheduled to open in the first quarter of 2014. Acadia paid $91.8 million in cash for both entities, plus construction costs for the Tampa facility, which was owned by Ten Broeck Tampa, Inc……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
Just five of the 22 hospital mergers or acquisitions that were announced in Q1:2013 came with prices, with a combined total of $265 million. The only publicly traded target, Krungdhon Hospital, was also the only international acquisition with a disclosed price, acquired by publicly traded Bangkok Dusit Medical Service. Two acquisitions were pure real estate plays, launched by Ventas and American Realty Capital Healthcare Trust. Two targets, Knapp Medical and Cleveland County HealthCare, were nonprofits, and the Rex Knightdale property and Cancer Center of Metro Health Village were privately owned.
Top 5 Hospital Deals of Q1:2013
Rank
Acquirer
Target
Price
1
Prime Healthcare Foundation
Knapp Medical Center
$110,000,000
2
Carolinas HealthCare System
Cleveland County HealthCare System
$101,000,000
3
Ventas
The Rex Knightdale property
$24,760,000
4
Bangkok Dusit Medical
Krungdhon Hospital
$23,400,000
5
American Realty Capital Healthcare Trust
Cancer Center at Metro Health Village
$6,200,000
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
Swiss giant Roche is pairing its expertise in neurodegenerative diseases with the Isis Pharmaceuticals’ antisense oligonucleotide technology to develop treatments for Huntington’s disease. To date, there is no cure for the genetic brain disorder that causes progressive loss of memory and physical control. Roche announced on April 8 that it is making an upfront payment of $30 million to Isis, with total payments—including license fees and pre- and post-licensing milestones of up to $362 million, in addition to tiered royalties on sales of the drugs to be developed. Roche has the option to license the drugs through completion of Phase 1 trials…..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
It’s all about relationships in the venture capital world. French biopharmaceutical company GenSight Biologics announced on April 7 that it closed a $41 million Series A tranche to fund a gene replacement therapy for Leber’s hereditary optic neuropathy (LHON) and an optogenetic therapy for retinitis pigmentosa. The lead product is expected to enter the clinic in 2013 for LHON patients. The round was led by the Novartis Venture Funds, Abinworth LLP, Versant Ventures and Index Ventures. GenSight is based in Paris, on the campus of the Vision Institute. Co-founder and CEO Bernard Gilly was formerly head of Fovea Pharmaceuticals, which was acquired by sanofi-aventis in 2009; a partner at Sofinnova Partners; and CEO of Transgene, a publicly traded gene therapy company……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.
Upcoming Interactive M&A Webcast:
Hospitals: Buying, Selling and Valuing
Thursday, April 25, 2013, 1:00 pm ET
The dramatic increase in Hospital M&A activity from 2010 through 2012 accounts for a 25% increase in the number of deals made compared to the prior three-year period. That steep incline in hospital mergers and acquisitions is expected to continue in the coming years. Find out more from our expert panel: David Ertel (Moderator), Chief Financial Officer, Einstein Healthcare Network; Arnie Kimmel, Senior Vice President of Development, Prime Healthcare Services; Monte Dube, Esq., Partner, Proskauer Rose; Stephen Gelineau, Senior Vice President, The Camden Group; and Jim Moloney, Managing Director / Co-Head of Tax-Exempt M&A, Cain Brothers.
Go to http://www.levinassociates.com/conferences/1304b-online-conference or call 800-248-1668 to register.
NEW – The Health Care Services Acquisition Report, 19th Edition – Save $50
Deals have been made. The 2013 Health Care Services Acquisition Report contains private deals in this market that are too small to make it into the financial press. Take advantage of our limited time $50 instant savings offer – order The 2013 Health Care Services Acquisition Report by April 30th and receive $50 off your purchase! Now that’s a recession resistant deal. Go to http://www.levinassociates.com/landing/har19order or call 800-248-1668 to preorder today!
Conference Calendar…Click here to see more
