Healthcare M&A Hits Frenzied Pace

Deals are still bubbling to the surface, but the second quarter is in the books, and it was another big one for healthcare M&A. Across the 13 sectors, spanning from behavioral health and rehabilitation to biotechnology and our bailiwick, long-term care, we recorded 423 separate transactions, up from 393 deals in the first quarter, according to our M&A database Deal Search Online.

Leading the way in activity, not surprisingly, was Long-Term Care with 113 mergers and acquisitions, followed by Other Services (which includes urgent care centers, ambulatory care centers, CROs and other health care services not placed into the other sectors) with 49, eHealth (47), Pharmaceuticals (37) and Biotechnology (34).

Spending was especially strong this quarter, reaching $138.5 billion, one of the highest quarterly totals we have ever recorded. Most of that came from one acquisition: AbbVie‘s surprise $87 billion bid for Allergan, which would be the largest price for a healthcare transaction of all time, if it closes. The price of $188.24 per share consists of $120.30 in cash and 0.8660 in AbbVie shares, as well as about $24 billion of assumed debt as of the most recent quarter.

While it’s the biggest deal of the year, 2019 is only half over. Through June, the Pharmaceutical sector has 56 announced transactions and $93.5 billion in spending. Meanwhile the Biotechnology sector kicked off the year with Bristol-Myers Squibb‘s $74 billion deal for Celgene Corporation, followed by Danaher Corp.’s $21.4 billion bid for the GE Biopharma business and Pfizer’s $11.4 billion takeover of Array BioPharma. All told, across the 816 healthcare deals announced in the first half of 2019, a total of $287.3 billion in spending has been disclosed. What does the second half of 2019 have in store?

 

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