Evolent Health Inc. agreed to acquire Magellan Specialty Health from Centene Corp. in a deal worth up to $750 million. The companies also reported a strategic partnership to continue and expand Centene’s relationship with Magellan Specialty Health.
Trisalus Life Sciences Inc. agreed to merge with Medtech Acquisition Corp. (MTAC) in a deal that allows the drug/device company’s management to meet three out of three goals: quick cash, retained control and faster completion of key clinical trials.
Private equity firm TPG Inc. validated rumors circulating since August that it was seeking a buyer for Immucor Inc. with the announcement of an agreement to sell the diagnostics company for $2 billion to Werfen SA. Immucor offers transfusion and transplantation diagnostics making it a natural fit for Werfen, which develops specialized diagnostic instruments, reagents and data management solutions. The deal is expected to close in the first half of 2023.
Diagnostic Medical Systems Group SA (DMD) is selling its entire stake in the share capital of Hybrigenics SAS, a biotech company listed on the Paris Euronext Stock Exchange since 2007. This sale of 116,911,328 shares, representing 43.41% of Gard, France-based Hybrigenics’ share capital, will allow DMS Group to refocus on its core imaging business. “We will strengthen our free cash in order to ramp the launch of new technology in medical imaging,” Samuel Sancerni, CEO of Diagnostic Medical Systems, told BioWorld.
Johnson & Johnson (J&J) agreed to acquire circulatory support device maker Abiomed Inc. for $380 per share in cash, corresponding to an enterprise value of $16.6 billion and a more than 50% premium on the share price as of the market close on Oct. 31. Abiomed shareholders will also receive a non-tradeable contingent value right that entitles them to $35 per share in cash, if certain milestones are met. That would bring the premium to 60%.
Ernst & Young’s (EY) annual Pulse of the Industry report offers plenty of reasons for optimism within med tech as the impact of the pandemic recedes, while identifying several key areas that will require continued focus for the sector’s long-term success.
After years of aggressive acquisitions, Medtronic plc joined 3M Co., General Electric Co. and Johnson & Johnson in rationalizing its business by splitting into more focused enterprises. Medtronic will separate its patient monitoring and respiratory therapy groups into a new company with projected annual revenue of $2.2 billion and 8,000 employees in the next 12 to 18 months, assuming regulatory and final board approvals.
The value of med-tech mergers and acquisitions, as well as deals, fell in the third quarter, although 2022 remains a standout year. M&As are at a five-year high, while deals are second only to 2019, in terms of overall value during the first three quarters. The volume of M&As are behind 2021, but deal volume this year remains on top.
Orthofix Medical Inc. and Seaspine Holdings Corp. signed a definitive agreement to combine in an all-stock merger of (near) equals. Following the close, Orthofix shareholders will own approximately 56.5% of the company and Seaspine shareholders will own approximately 43.5%. The new company’s name will be announced prior to the transaction’s anticipated first quarter of 2023 closing.
A subcommittee of the Senate Judiciary Committee met recently to review the current state of antitrust enforcement in the U.S., and heard from both the Department of Justice (DOJ) and the Federal Trade Commission (FTC) about their enforcement activities. FTC chairwoman Lina Khan acknowledged that the agency had coordinated with the European Commission about the transaction between Illumina Inc., and Grail Inc., activities which she claimed were nothing more than an attempt to promote regulatory efficiency.
