Healthcare Sector Comment – October 2013

Date

October saw the completion of 10 deals in the UK healthcare market. An interesting deal saw Medimmune Inc, AstraZeneca’s biologics arm, add to its oncology arsenal through the acquisition of Spirogen Ltd. The UK-based biopharmaceutical company was acquired for £125m. The acquisition will allow AstraZeneca to establish a foothold in the antibody-drug market and will consequently result in positive synergies for both companies due to their combined resources.

International healthcare specialists BUPA completed the acquisition of the largest private clinic network in Hong Kong, Quality Healthcare Medical Services, for a total consideration of £222m earlier last month. For BUPA, this deal provides an opportunity for strong growth in the region as it further penetrates the Hong Kong market.

Deals

Trinity Biotech plc acquired Lab21 Ltd (Blood Bank Screening and Molecular Manufacturing Assets) for a total consideration of £5m. Trinity Biotech Plc is an Ireland based manufacturer of clinical diagnostic products. Lab21 is a UK healthcare diagnostics company.

Andor Technology plc acquired Spectral Applied Research Inc for a total consideration of £7m. Andor is a Canadaian company that develops and manufactures high performance light measuring solutions. Spectral is a UK manufacturer of optical systems for the cell biology research community.

Management Vehicle acquired Testerworld Ltd for an undisclosed amount. Testerworld is a UK pharmaceuticals wholesaler.

MedPlast acquired Orthoplastics for an undisclosed amount. MedPlast is a US technology and innovative process leader in manufacturing support for healthcare markets. Orthoplastics is a UK orthopaedic devices manufacturer.

Target Healthcare REIT acquired two care homes for a total consideration of £11.5m. Target Healthcare is a UK investor in care homes.

Black & Lizars Ltd acquired Peter Fernie Opthalmic Opticians and Occuleye Opticians Ltd for an undisclosed amount. Black & Lizars, Peter Fernie Opthalmic and Occuleye are all UK optometrist firms.

Management Vehicle acquired Serco Group plc (Occupational Health Business) for a total consideration of £4m. Serco Group is a provider of support and consulting services.

Healthcare Homes Group Ltd acquired South Norfolk Carers Ltd for an undisclosed amount. Healthcare Homes is a UK provider of care homes and home care. South Norfolk Carers Ltd is a UK home-based care and supported living company.