M&A News In The Healthcare Industry Sector

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.

Industry Indicators

  • US consumer prices for medical care commodities, an indicator of healthcare costs, increased 1.4% in March 2018 compared to the same period in 2017.
  • US consumer prices for medical care services, an indicator of profitability for healthcare services, rose 2.1% in March 2018 compared to the same month in 2017.
  • Total US revenue for healthcare and social assistance rose 3.7% in the fourth quarter of 2017 compared to the previous year.

Posted by Daniel Sirvent.

Read the Entire Healthcare 2nd Quarter Newsletter Here