InSight

Exit and Growth Strategies for Middle Market Businesses

Archive for the ‘Healthcare’ Category

M&A Quarterly News In The Healthcare Industry Sector

By Daniel Sirvent | Nov 08, 2019

The report below gives a good overview of the fourth quarter M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q3 2019 included 168 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in August when AtriCure, Inc. acquired SentreHEART, Inc., a portfolio company of Pinnacle Ventures LLC, Presidio Management Group Inc, Prospect Venture Partners, Vivo Capital LLC, Deerfield Management Co LP and Decheng Capital LLC, for US$281.4 million in stock and contingent payout with an undisclosed amount in cash. Founded in 2005, SentreHEART is located in Redwood City, California and develops catheter-based solutions.

Read more »


M&A Quarterly News In The Healthcare Industry Sector

By Daniel Sirvent | Sep 27, 2019

The report below gives a good overview of the third quarter M&A activity in the Healthcare Industry Sector. Though Healthcare M&A activity moderated in Q2 2019, several substantial transactions held the quarter securely in line with prior trends. M&A activity for North American based target companies in the Healthcare sector for Q2 2019 included 181 closed deals, according to data published by industry data tracker FactSet.

A notable middle market transaction in the sector closed in June when Varian Medical Systems, Inc. acquired Cancer Treatment Services International, Inc., a portfolio company of TPG Growth LLC, for $283 MM in cash. Cancer Treatment Services International develops and operates cancer treatment facilities and is located in Pittsburgh, PA. Varian Medical Systems is headquartered in Palo Alto, CA and uses X-ray energy to develop new technologies to fight cancer. This transaction broadens Varian Medical Systems’ portfolio of cancer treatment service offerings. The acquisition was funded through Varian Medical Systems’ credit facility and cash on hand. The transaction is expected to increase Varian’s earnings per share during fiscal year 2021 and 2022.

Read more »


M&A Quarterly News In The Healthcare Industry Sector

By Daniel Sirvent | May 09, 2019

The report below gives a good overview of the second quarter M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q1 2019 included 156 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in March when Acrotech Biopharma LLC, a subsidiary of Aurobindo Pharma Ltd, acquired the business and assets of 7 Hematology Products from Spectrum Pharmaceuticals, Inc. for $300 million in cash and contingent payout. The acquisition would allow Acrotech Biopharma to expand its product offerings.

Read more »


M&A News In The Healthcare Industry Sector

By Daniel Sirvent | Feb 20, 2019

The report below gives a good overview of the first quarter M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q4 2018 included 103 closed deals, according to data published by industry data tracker FactSet.

Pharos Capital Group LLC acquired an undisclosed majority stake in Charter Health Care Group LLC for an undisclosed amount. The acquisition helps Pharos Capital Group’s strategy to improve the patient experience and lower the costs of care. Founded in 2006, Charter Health Care Group is located in Covina, California and provides post-acute hospice, transitional care and home health care services throughout San Bernardino, Riverside, Los Angeles and Orange counties.

 Industry Indicators

  • Total U.S. revenue for healthcare and social assistance rose 4.7% in the third quarter of 2018 compared to the previous year.
  • U.S. consumer prices for medical care services, an indicator of profitability for healthcare services, rose 2.6% in December 2018 compared to the same month in 2017.
  • U.S. consumer prices for medical care commodities, an indicator of healthcare costs, decreased 0.5% in December 2018 compared to the same period in 2017.
  • U.S. nondurable goods manufacturers’ shipments of pharmaceuticals and medicines, an indicator of pharmaceuticals production, rose 9.1% year-to-date in October 2018 compared to the same period in 2017.
  • U.S. retail sales for health and personal care stores, a potential measure of consumer spending on pharmaceuticals, increased 3.8% in the first eleven months of 2018 compared to the same period in 2017.

Posted by Daniel Sirvent.

Read the Entire Healthcare 1st Quarter Newsletter Here


M&A News In The Healthcare Industry Sector

By Daniel Sirvent | Nov 01, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Healthcare Industry Sector.  M&A activity for North American based target companies in the Healthcare sector for Q3 2018 included over 200 closed deals, according to data published by industry data tracker FactSet, PitchBook and CFA research.

One of the notable middle market transactions closed in September when HCA Houston Healthcare, a subsidiary of HCA Gulf Coast Division, which is ultimately owned by HCA Healthcare, Inc., acquired North Cypress Medical Center for $148 million. The acquisition complements HCA Houston Healthcare’s medical services. North Cypress Medical Center is located in Houston, Texas.

Read more »


M&A News In The Healthcare Industry Sector

By Daniel Sirvent | Jul 31, 2018

The report below provides a good overview of the third Quarter  M&A activity in the Healthcare Industry Sector.  According to data published by industry data tracker FactSet, M&A activity for North American based target companies in the Healthcare sector for Q2 2018 included 193 closed deals.

One of the notable middle market transactions was announced in April when Precision Engineered Products LLC, a subsidiary of NN, Inc., acquired Paragon Medical, Inc, a portfolio company of Beecken Petty O’Keefe & Co LP, for $375 Million in cash. The transaction expands Precision Engineered Products’ life sciences portfolio. Paragon Medical is located in Pierceton, Indiana and supplies surgical instruments and implantable components. The company was founded in 1991.

In the US, the healthcare sector is dominated by hospitals, though of the roughly 7,000 hospitals in the country around 75% are not-for-profit.
Read more »


M&A News In The Healthcare Industry Sector

By Daniel Sirvent | May 08, 2018

The report below provides a good overview of the second Quarter  M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q1 2018 included 131 closed deals, according to data published by industry data tracker FactSet.
One of the notable transactions of the quarter was announced in March when Akcea Therapeutics, Inc. acquired assets related to the Inotersen and ACKEA-TTR drug licenses from Ionis Pharmaceuticals, Inc. for approximately US$1.7 billion in stock and US$90 million in contingent payout. Akcea Therapeutics, Inc. is a late-stage pharmaceutical company, which engages in the development and commercializing of drugs for the treatment of cardio metabolic diseases caused by lipid disorders.

Spending on major federal health care programs (Medicare, Medicaid, and the Affordable Care Act’s exchange subsidies) has declined as a result 23 percent drop in the cost of Medicare Part D and a 15 percent decline in the projected costs of the Affordable Care Act’s (ACA) coverage through Medicaid and the exchanges.

Read more »


M&A News In The Healthcare Industry Sector

By Daniel Sirvent | Mar 12, 2018

The report below provides a good overview of the first quarter  M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q4 2017 included 90 closed deals, according to data published by industry data tracker FactSet.

One of the largest transactions of the quarter closed in December when Express Scripts Holding Co. acquired Carecore National Group, LLC, trading as Evicore, from General Atlantic LLC, TA Associates Management LP, MedCare Investment Corp and Ridgemont Partners Management LLC for US$3.6 billion. The acquisition would expand Express Scripts Holding’s services in the pharmaceutical industry. Express Scripts engages in the provision of integrated pharmacy benefit management services. Carecore National Group offers medical benefits management. It currently has approximately 4,000 employees.

Healthcare is still a strong sector for M&A and investment. Of particular interest to investors is cancer therapeutics

Read more »


M&A News In The Healthcare Industry Sector

By Daniel Sirvent | Dec 11, 2017

The report below provides a good overview of the fourth quarter M&A activity in the Healthcare Industry Sector. M&A activity for North American based target companies in the Healthcare sector for Q3 2017 included 183 closed deals, according to data published by industry data tracker FactSet.

National health expenditures are projected to grow at a rate of 5.6% on average per year according to the U.S. Office of Actuary. The country’s aging population is expected to contribute significantly to that spending growth.

Read more »


M&A News for the Healthcare Industry Sector

By Daniel Sirvent | Sep 21, 2017

The report below provides a good overview of the 3rd Quarter M&A activity in the Healthcare Industry Sector. Q2 M&A activity for North American based Healthcare companies included 152 closed deals, according to data published by industry data tracker FactSet Research with an average disclosed transaction value of $142 million.

One of the largest deals of the quarter closed in May when Sawai Pharmaceutical Co. Ltd. acquired Upsher-Smith Laboratories, Inc. from ACOVA, Inc., for US$1.1 Billion in cash. Sawai Pharmaceutical Co. engages in the manufacture and sale of prescription pharmaceutical products that include cardiovascular drugs, antihyperlipidemic agents, diabetes, anticancer drugs and over-the-counter drugs. Upsher-Smith Laboratories manufactures generic pharmaceuticals.

Read more »