Healthcare sector comment – October 2011

Date

A significant deal this month was the announcement that Alere has acquired Axis Shield Plc. Alere, a US-based diagnostics group, announced that it received over 90% of Axis-Shield shareholder acceptance in October to its offer of 470 pence per share valuing the company at about £235 million. Shortly after this announcement Axis-Shield signed its first major partnership deal in the US. The partnership will see Axis-Shield supply MinuteClinic, the largest retail medical clinic provider in the US, with its Afinion blood testing device. MinuteClinic has around 600 locations in the US.

Axis-Shield will delist from the London Stock Exchange with effect from 22 November 2011. The firm will then be re-registered as a private limited company. Alere’s pursuit of Axis-Shield dates back to July, when its initial offer for the company was rejected. Axis-Shield’s point-of-care technology complements Alere’s own portable diagnostic products which will help improve its core patient management offering.

Another significant transaction was the announcement that our US healthcare team advised the US listed Metropolitan Health Networks Inc on its acquisition of Continucare Corporation, for a consideration of $460m. This will make the listed entity the largest primary care network provider in Florida serving the state’s Medicare and Medicaid customers.

Deals

Enara Group Ltd has acquired Primary Health Care LLP, First Choice Community Support Services Ltd and Alpha Nursing & Care Services Ltd for undisclosed amounts. Enara Group is a home care services provider. Primary Health Care, First Choice Community Support Services and Alpha Nursing & Care Services are all home care service providers.

Optos Plc has acquired the ophthalmic division of OPKO Health Inc for a consideration of £11.2m. Optos is a retinal imaging company producing optical imaging devices. OPKO Health is a developer of pharmaceutical products, vaccines and diagnostic products.

Anglo-European College of Chiropractic has acquired Bassett Chiropractic Clinic Ltd for an undisclosed amount. Anglo-European College of Chiropractic is a chiropractic college operator. Bassett Chiropractic Clinic Ltd is a chiropractic clinic operator.

Advanced Vetcare Ltd has acquired Rowe Veterinary Ltd for an undisclosed amount. Advanced Vetcare is a veterinary group. Rowe Veterinary is a provider of veterinary services.

Lifeways Community Care Ltd has acquired Oaklands Community Care Ltd for an undisclosed amount. Lifeways Community Care is a special needs care provider. Oaklands Community Care is a provider of residential and home care services.

Alere Inc has acquired Axis-Shield Plc for a consideration of £235m. Alere is a diagnostic-based health solutions provider. Axis-Shield is a developer and manufacturer of in-vitro diagnostic products.

Amcare Ltd has acquired Farnhurst Medical Ltd for an undisclosed amount. Amcare is a provider of stoma care home delivery services. Farnhurst Medical is a provider of stoma and continence care product services.

Toby Churchill Ltd has acquired DJ Rehab Ltd for an undisclosed amount. Toby Churchill is a designer and seller of equipment to aid disabled people. DJ Rehab is a manufacturer and wholesaler of specialised environment control systems.

Optima Care Ltd has acquired Family Care Homes Ltd for an undisclosed amount. Optima Care is a care services provider for 78 people in residential, community units and hospitals in the Lancashire area. Family Care Homes is a provider of support for adults with learning disabilities and challenging behaviour.

Hikma Pharmaceuticals Plc has acquired Promopharm S.A. for a consideration of £102m. Hikma Pharmaceuticals is a UK-based generic pharmaceutical company engaged in the development, manufacture and marketing of a range of generic and in-licensed pharmaceutical products. Promopharm is a Moroccan company engaged in production manufacturing and sale of pharmaceuticals.