Healthcare sector comment – June 2011

Dato

An interesting development this month was the announcement that Circle Holdings listed on AIM with a successful £95.4 million flotation.

The company’s principle asset is Circle Health Ltd which is 50% owned by the Company and 50% owned by the Circle Partnership, which is wholly owned by the company’s clinicians and employees. It will be interesting to see how the revised health and social care bill will impact upon the opportunities for private operators in the secondary healthcare market, and if the social enterprise model operated by Circle Health will become more common.

A significant deal this month was Gorgemead’s (a member of the Cohens Group of chemists) acquisition of Assura Pharmacy’s 36 sites. Assura sold its Assura Medical walk in centre business to Virgin last year and has now completed all non-property and service related divestments. Assura can now focus its efforts and be viewed in the market as a pure property firm. This deal will bring Cohens Group’s portfolio up to 150 pharmacies. A number of these pharmacies are strategically co-located within GP clinics providing a good footfall of dispensing income.

Deals

Amcare Ltd, part of ConvaTec, has acquired Arthur Wood Ltd, which operates as Trent Direct for an undisclosed amount. Amcare is a UK-based firm that specialises in the dispensing of stoma care products. Trent Direct also specialises in the dispensing of stoma care products.

Hg Capital has acquired Mainio Vire Oy for an undisclosed amount. Mainio Vire Oy is a Finland based company that offers homecare services.

Trygg Pharma AS has acquired the Middlesbrough manufacturing facility of H. Lundbeck A/S for a consideration of £15m. Trygg Pharma is a Norway based company which manufactures and develops concentrates for pharmaceutical applications. H. Lundbeck A/S is a Denmark based company engaged in the research, development, manufacturing and marketing of pharmaceuticals for the treatment of diseases of the central nervous system.

Provexis Plc has acquired Science in Sport Ltd for a total consideration of £8m. Provexis Plc, the listed UK based nutraceutical company develops scientifically-proven, proprietary, functional foods, supplements and medical foods. Science in Sport Limited is a UK based biotechnology company providing nutritional products and advice to sportsmen.

PerkinElmer Inc has acquired Dexela Ltd for an undisclosed amount. PerkinElmer is a listed US based manufacturer that delivers advanced technology solutions to monitor safety concerns, including maternal and foetal health, clean water and air, and safe food and toys. Dexela Ltd is a UK-based provider of flat-panel complementary metal-oxide-semiconductor (CMOS) X-ray detection technologies and services.

Medidata Solutions Inc has acquired Clinical Force Ltd for an undisclosed amount. Medidata is a US based business that provides advanced technology and data-driven metrics to link clinical and operational data rapidly and safely, creating new workflows that maximise organisations’ resources and generate new insights for clinical trials. Clinical Force is a London-based clinical trials management company.

Gorgemead Ltd has acquired Assura Pharmacy for a total consideration of £39.3m. Gorgemead Ltd is a UK based provider of pharmacy services. Assura Pharmacy Limited is UK based provider of pharmacy services.