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January 27, 2014 Issue:
Recent Health Care M&A Deals
Medical Devices
Acquirer
Target
Price
Organogenesis Inc.
Dermagraft
$0
Intuitive Surgical
Shape-sensing technology
$12 million
Pharmaceuticals
Aurobindo Pharma Limited
Actavis’ Operations
N/A
Teva Pharmaceutical Industries Ltd.
Nupathe Inc.
$144 million
Par Pharmaceutical Companies, Inc.
JHP Group Holdings
$490 million
Technology Deal of the Week
Last month, Endo Health Solutions Inc. (NASDAQ: ENDP) announced its $105 million tender offer for NuPathe, Inc. (NASDAQ: PATH), a specialty pharmaceutical company focused on diseases of the central nervous system, including neurological and psychiatric disorders. The price represented $2.85 per share in cash upfront, and up to $3.15 per share in sales milestones for NuPathe’s primary product, migraine treatment Zecuity®. Enter Teva Pharmaceuticals Industries (NYSE: TEVA) with an offer of $3.65 per share in cash (about $144 million), and additional cash payments of up to $3.15 per share in sales milestones. Endo bowed out after receiving a $5 million termination fee from NuPathe…….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
The fourth quarter of 2013 exceeded the performance of the third quarter, when 12 deals reached or exceeded the billion-dollar mark. In the fourth quarter of 2013, all of the top deals were valued at $1.0 billion or more, compared with four billion-dollar deals announced in Q4:12. The nine deals below accounted for 70% of the total dollar volume in the fourth quarter.
Top Transactions in Q4:13
Acquirer
Target
Price
(in millions)
Target Sector
Shire plc
ViroPharma Incorporated
$4,200
Pharmaceuticals
Bayer Group
Algeta ASA
$2,900
Pharmaceuticals
AstraZeneca plc
Global diabetes
assets
$2,700
Pharmaceuticals
Salix Pharmaceuticals, Ltd.
Santarus, Inc.
$2,600
Pharmaceuticals
CVS Caremark
Coram LLC
$2,100
Home Health Care
Royal DSM, N.V. and JLL Partners
Patheon Inc.
$1,950
Other
Grifols S.A.
Blood transfusion
diagnostics business
$1,675
Biotechnology
Endo Health Solutions Inc.
Paladin Labs Inc.
$1,600
Pharmaceuticals
Madison Dearborn Partners
Ikaria, Inc.
$1,600
Pharmaceuticals
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
Quest Diagnostics (NYSE: DGX) last week announced its acquisition of Solstas Lab Partners Group, a portfolio company of Welsh, Carson, Anderson & Stowe for $570 million. Solstas is a full-service commercial laboratory company based in Greensboro, North Carolina, operating in nine southeastern states. Quest expects the acquisition to add approximately 5% in annualized revenues, about 1% of which will be from professional lab services, and be modestly accretive to adjusted earnings per share 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
Venture capitalists invested $29.4 billion in 3,995 deals in 2013, up 7% in dollar volume and 4% in deal volume, compared with 2012. That’s the word from the MoneyTree Report by PricewaterhouseCoopers LLP and the National Venture Capital Association, based on Thomson Reuters data. The Biotechnology sector saw investment dollars increase 8%, to $4.5 billion, while deal volume dropped 2%, to 470 deals in all of 2013. The Medical Device sector fared worse, down 17% in dollar volume to $2.1 billion, and in deal volume, down 4%, to 308 deals. Together, the Biotech and Med Device sectors accounted for 23% of all VC dollars invested in 2013, compared with 25% in 2012. ……. 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.
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 January 31st 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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