Study: 2011 merger activity to surpass 2010 by 20%
While merger and acquisition (M&A) activity may have slowed down in other industries, in the healthcare industry, 2011 merger and acquisition activity is poised to surpass last year’s results by about 20 percent, according to a report from Irving Levin Associates.
In the healthcare industry, the third quarter dollar volume contributed $58.9 billion (32 percent) to the $185.9 billion spent on merger, acquisition and takeover activity during the first nine months of 2011, the Norwalk, Conn.-based research firm stated.
“With an average of $62 billion committed to healthcare M&A each quarter, and only $19.4 billion needed to equal the $205.3 billion spent in 2010, 2011 is poised to surpass last year’s results,” observed Sanford Steever, editor of "The HealthCare M&A Report."
Healthcare deal volume during Q3 2011 posted modest declines from the figures recorded in both the previous and year-ago quarters. The quarter’s largest deal involves the proposed combination of two pharmacy benefits managers: Express Scripts announced plans to acquire Medco Health Solutions for $29.1 billion.
“Pharmacy benefits managers seek to tame the rising costs of prescription drugs. Since acquisitions can wring out unwanted costs and find new efficiencies, such combinations may well offer a win-win for companies and consumers alike. This kind of a deal may well serve as a model for others in the healthcare services sectors who seek to hold costs down while expanding their service offerings,” the report stated.
The medical device industry continues to attract the majority of investor interest and dollars, the report noted. For the first three quarters of 2011, medical devices account for $58.8 billion (32 percent) of all healthcare M&A dollars.
For the first three-quarters of 2011, the healthcare merger and acquisition market has posted 707 deals worth a combined total of $185.9 billion, the report concluded. “Based on results from the past 10 years, 2011 will take its place among the top five years for healthcare merger and acquisition activity.”
In the healthcare industry, the third quarter dollar volume contributed $58.9 billion (32 percent) to the $185.9 billion spent on merger, acquisition and takeover activity during the first nine months of 2011, the Norwalk, Conn.-based research firm stated.
“With an average of $62 billion committed to healthcare M&A each quarter, and only $19.4 billion needed to equal the $205.3 billion spent in 2010, 2011 is poised to surpass last year’s results,” observed Sanford Steever, editor of "The HealthCare M&A Report."
Healthcare deal volume during Q3 2011 posted modest declines from the figures recorded in both the previous and year-ago quarters. The quarter’s largest deal involves the proposed combination of two pharmacy benefits managers: Express Scripts announced plans to acquire Medco Health Solutions for $29.1 billion.
“Pharmacy benefits managers seek to tame the rising costs of prescription drugs. Since acquisitions can wring out unwanted costs and find new efficiencies, such combinations may well offer a win-win for companies and consumers alike. This kind of a deal may well serve as a model for others in the healthcare services sectors who seek to hold costs down while expanding their service offerings,” the report stated.
The medical device industry continues to attract the majority of investor interest and dollars, the report noted. For the first three quarters of 2011, medical devices account for $58.8 billion (32 percent) of all healthcare M&A dollars.
For the first three-quarters of 2011, the healthcare merger and acquisition market has posted 707 deals worth a combined total of $185.9 billion, the report concluded. “Based on results from the past 10 years, 2011 will take its place among the top five years for healthcare merger and acquisition activity.”