Healthcare M&A Activity Dips
Behavioral healthcare was the only bright spot in the report, posting a 133% gain in deal volume against the previous quarter. Home health hospice was flat over the fourth quarter of 2012.
Other sectors did not do as well. Compared to the fourth quarter of 2012, M&A deal volume was down
- 86% for rehabilitation facilities;
- 67% for managed care; 66% for biotechnology;
- 37% for physician medical groups;
- 32% for hospitals;
- 31% for medical devices; 28% for long-term care;
- 27% for eHealth;
- 27% for laboratories, MRI, and dialysis
The pharmaceutical sector was down 16% in deal volume compared with the fourth quarter of 2012 and remained flat compared with the first quarter of 2012.
Pharma Deal Activity
"On the pharma side, while there were several large deals in the first quarter—three over $1 billion each—large is all relative as there are not the mega deals of the past. I think it is partly that the big pharmas are trying to figure out what their platform really should be for the future, and that they are interested more in targeted acquisitions rather than the $15 billion deal where the return comes from synergies and cost cutting. [Buyers'] shareholders aren't really interested in those reasons anymore," Monroe explained.
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