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
- US consumer prices for medical care commodities, an indicator of healthcare costs, increased 2.3% in December 2017 compared to the same period in 2016.
- US consumer prices for medical care services, an indicator of profitability for healthcare services, rose 1.6% in December 2017 compared to the same month in 2016.
- Total US revenue for healthcare and social assistance rose 4.6% in the third quarter of 2017 compared to the previous year.
Posted by Daniel Sirvent.