Healthcare Sector Comment – July 2015

Date

With the completion of the mega merger between Actavis and Allergan taking place just three months ago, standing at a massive €55.2bn, Actavis has now also finalised its previously announced acquisition of Auden McKenzie. The pharmaceutical conglomerate picked up UK-based Auden, which focuses on the development, licensing and marketing of niche generic medicines and proprietary brands, for €409m.

In the UK, Actavis currently markets more than 650 generic products with around 85 additional products under registration and development. The combination with Auden means Actavis becomes the number one supplier of generic pharmaceuticals in the UK.

This deal reflects the global interest in niche medicines with many large corporates looking to market and sell them internationally. This was demonstrated recently with the announcement that Indian pharmaceutical company Lupin will spend €728m – the largest acquisition in its history – on the acquisition of GAVIS Pharmaceuticals LLC. Niche generics are less commoditised compared to the vanilla generic medicines and hold margin which is why generic suppliers are supporting this strategy.

Clearwater International has experience in this market, having previously advised on the sale of Neolab to DCC, the sale of a batch of generic licences to a large Indian generics player, and the sale of Peckforton Pharmaceuticals to Abbey Pharma.

 

Health & Social Care Deals

French multinational Air Liquide acquired Baywater Healthcare, the Ireland-based home healthcare company that specialises in treating and monitoring respiratory diseases, from UK private equity firm Duke Street for an undisclosed amount.

UK private equity firm Synova Capital backed the management buy out of 4Ways Healthcare, a UK-based provider of teleradiology services, for an undisclosed amount.

Listed Malaysian care centre operator TMC Life Sciences Berhad completed its previously announced acquisition of BB Waterfront Sdn Bhd, a Malaysia-based hospital company, for a consideration of €85m.

UK private hospital operator Aspen Healthcare was acquired by Tenet Healthcare for a consideration of €197m. Tenet is a healthcare services company which primarily operates acute care hospitals and related healthcare facilities in the US.

Capitol Health Ltd, a listed Australian provider of medical diagnostic imaging services, acquired Eastern Radiology Services Pty Ltd and Sydney Radiology Pty Ltd, both Australia-based radiology services providers, for a combined consideration of €20m.

In the last of its three divestments, Care UK sold its home care services business to UK support services firm Mears Group for a consideration of €13m. Care UK’s home care service looks after approximately 13,000 people across the UK.

MJ Acquisition Corporation – the joint venture of Select Medical Holdings Corporation, the US operator of speciality hospitals and out-patient rehabilitation clinics, and Welsh, Carson, Anderson & Stowe, the US private equity firm – acquired Concentra Inc from Humana Inc for a consideration of €965m. Based in the US, Concentra provides occupational medicine, urgent care, physical therapy and primary care services through its 330 care centres.

 

Pharma & Biotech Deals

NASDAQ-listed pharmaceutical company Alexion Pharmaceuticals Inc acquired Synageva BioPharma Corp, the US biopharmaceutical research and development service provider, for a consideration of €7.3bn.

Circassia Pharmaceuticals plc, the UK speciality biopharmaceutical company, acquired Prosonix Ltd, a UK-based speciality pharmaceutical company which develops a portfolio of inhaled respiratory medicines to treat asthma and chronic obstructive pulmonary diseases, for a consideration of €138m.

Irish pharmaceutical company Altan Pharma Ltd acquired The GES Group for a consideration of €88m. Based in Spain, The GES Group manufactures and markets speciality injectable drugs.

AIM-listed Allergy Therapeutics plc completed the acquisition of Alerpharma SA, the Spain-based pharmaceutical company, for a consideration of €6m. Allergy Therapeutics is a speciality pharmaceutical company that manufactures and sells pharmaceutical vaccine products for the immunological treatment of allergic conditions.

Biota Pharmaceuticals Inc acquired Anaconda Pharma SAS, a France-based company that offers biotechnology services and develops treatments against infections by human papillomavirus, for a consideration of €42m. Biota Pharmaceuticals is a biopharmaceutical company that focuses on developing oral, small molecule compounds to treat various respiratory-related viral infections.

Amdipharm Mercury Company Ltd (AMCo), a portfolio company of Cinven, acquired Primegen Ltd, a UK speciality pharma business which sells a number of niche medicines, for an undisclosed amount. AMCo manufactures and distributes a broad range of branded and generic pharmaceutical prescription products.

Global pharmaceutical company Actavis plc acquired Auden McKenzie Holdings Ltd, a company focused on the development, licensing and marketing of niche generic medicines and proprietary brands in the UK, for a consideration of €409m.

 

Medical Equipment & Supplies Deals

Audax Group, the US-based private equity firm, backed the management buy out of Katena Products Inc, the US-based developer and manufacturer of ophthalmic surgical instrumentation products, for an undisclosed amount.

NYSE-listed medical device company Medtronic acquired:

  • US medical device company Aptus Endosystems Inc for a consideration of €97m. Aptus engages in developing and manufacturing advanced technology for endovascular aneurysm repair;
  • CardioInsight Technologies Inc, the US-based developer of cardiac mapping technology, for a consideration of €82m.

EPF Partners, CM-CIC Investissement and BPI France SA, the France-based private equity firms, backed the management buy out of Teknimed, the France-based manufacturer of implantable biomaterials.

Zimmer Holdings Inc and Biomet Inc completed their previously announced €10bn merger. The company now known as Zimmer Biomet is a US-based manufacturer of orthopaedic reconstructive devices and spinal & trauma devices.

France-based medical devices manufacturer Peters Surgical SAS acquired Stericat Gut Strings Pvt Ltd, an India-based absorbable and non-absorbable surgical sutures manufacturer, for a consideration of €11m.