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     pharmaceuticals and health services

This page provides benchmarks by considering acquisitions and disposals in the pharmaceuticals, medical devices and health service industries.

It covers -

• pharmaceuticals
• medical devices and equipment
• health services
• studies

     pharmaceuticals

Major drug companies have been claimed as casualties of their own success, creating 'blockbuster' pharmaceuticals in high demand around the world but then facing competition from generic treatments and thus needing a rapid replacement of new drugs to fill marketing pipelines. Absorbing a large competitor offers one means of quickly obtaining a substitute blockbuster and economies of scale for new R&D, although critics argue that much innovation is not coming from the big labs.

Pharmaceutical sector landmarks include -

• Primary Healthcare sells Symbion Health's pharma distribution arm to Zuellig conglomerate for $505m in 2008
• Daiichi Sankyo agrees to pay US $4.6bn for majority stake in Ranbaxy in 2008
• Bristol-Myers Squibb sells ConvaTec to Nordic Capital and Avista Capital Partners for US$4.1bn in 2008
• Takeda buys Millennium for US$8.8bn in 2008
• Eisai agrees to buy MGI Pharma for US$3.9bn in 2007
• Mylan Laboratories agrees to buy Merck's generic drug unit for US$6.7bn in 2007
• AstraZeneca pays US$15.2bn for MedImmune in 2007
• Schering-Plough agrees to buy Akzo Nobel's Organon BioSciences for US$14.4bn in 2007
• Shire pays US$2.6bn for New River Pharmaceuticals in 2007
• Hospira pays US$2.1bn for Mayne Pharma in 2007
• Abbott Laboratories agrees to acquire Kos Pharmaceuticals for US$3.7bn in 2006
• UCB agrees to buy Schwarz Pharma for US$5.6bn in 2006
• Merck agrees to buy Serono for US$13.7bn in 2006
• Barr Pharmaceuticals agrees to buy Pliva for $2.2bn in 2006
• AstraZeneca agrees to buy remainder of Cambridge Antibody Technology Group for £567m in 2006
• Merck buys GlycoFifor US$400m in 2006
• Johnson & Johnson pays US$16.6bn for Pfizer's consumer products arm in 2006
• Merck buys Abmaxis for US$80m in 2006
• Schering agrees to €16.9bn takeover by Bayer in 2006
• Dr Reddy's Laboratories buys Betapharm for US$572m in 2006
• Novartis pays US$5.1bn to take full control of Chiron in 2005
• Botox maker Allergan agrees to acquire rival Inamed for US$3.2bn in 2005
• Amgen agrees to acquire Abgenix for US$2.2bn in 2005
• Fujisawa Pharmaceutical merges with Yamanouchi in US$7.6bn deal in 2005 to create Astellas
• Sankyo joins with Daiichi Pharmaceutical in US$7.7bn merger in 2005
• Sanofi-Synthelabo buys Aventis for US$66.2bn in 2004
• Bayer buys Roche OTC business for US$2.96bn in 2004
• UCB buys Celltech for US$2.7bn in 2004
• Pfizer acquires Pharmacia for US$60bn in 2003
• Shire Pharmaceuticals Group acquires BioChem Pharma in all-stock deal worth C$5.9bn in 2003
• Amgen buys Immunex for US$16.7bn in 2002
• Du Pont sells pharmaceutical operations to Bristol-Myers Squibb for US$7.5bn in 2001
• Glaxo merges with SmithKline in US$172bn deal in 2000
• Pfizer acquires Warner-Lambert for US$88bn in 2000
• Astra merges with Zeneca as AstraZeneca in US$34bn deal in 1999
• Ciba-Geigy merges with Sandoz as Novartis in US$63bn deal in 1996
• Dow sells pharmaceutical operations to Hoechst for US$7.1bn in 1994
• Monsanto buys Kelco from Merck for US$1bn in 1993

Landmarks prior to the 1990s include -

• Beecham acquires SmithKline Beckman for US$8.9bn in 1989 
• Bristol-Myers acquires Squibb for US$11.9bn in 1989
• Dow buys Marion Laboratories in 1989
• Monsanto buys GD Searle for US$2.5bn in 1985
• Dow buys Merrill Drug arm of Richardson-Vicks for US$260m in 1981
• Allies restructure IG Farben in 1945
• Imperial Chemical Industries formed in 1926
• IG Farben Industrie formed in 1925
• Schering merges with Kokswerke in 1922

     medical devices

Landmarks in the medical device and equipment sector include -

• Philips Electronics agrees to buy Respironics for US$5.2bn in 2007
• Siemens agrees to acquire Dade Behring for US$7bn in 2007
• Biomet accepts US$11.4bn offer from Blackstone, Goldman Sachs Capital Partners, KKR and TPG consortium in 2007
• Johnson & Johnson agrees to buy cardiac stent maker Conor Medsystems for US$1.4bn in 2006
• Bayer agrees to sell diagnostics division to Siemens for US$5.3bn in 2006
• GE agrees to pay US$390m for Biacore International in 2006
• Philips agrees to buy Intermagnetics General for US$1.3bn in 2006
• American Medical Systems agrees to buy Laserscope for US$715m in 2006
• Siemens agrees to acquire Diagnostic Products for US$1.86bn in 2006
• Millipore agrees to buy Serologicals for $1.4bn in 2006
• Danaher agrees to buy Sybron Dental Specialties for US$2bn in 2006
• Investor AB and EQT Partners agrees to buy Gambro (dialysis products) for US$4.9bn in 2006
• Angiotech Pharmaceuticals agrees to acquire American Medical Instruments Holdings for US$785m in 2006
• Boston Scientific pays US$27bn for Guidant in 2006
• Smith & Nephew and Beiersdorf sell bandage-maker BSN Medical GmbH for €1.03bn in 2005
• Siemens buys remaining 50% of CTI for US$1bn in 2005

     health services

Landmarks in the health services sector include -

• Manor Care agrees to be acquired by Carlyle for US$4.9bn in 2007
• Ironbridge Capital, Archer Capital and Healthscope acquire and divide Symbion Health for $2.8bn in 2007
• BUPA sells its 25 private UK hospitals to Cinven for £1.44bn in 2007
• Triad Hospitals agrees to be acquired by CCMP Capital Advisors and Goldman Sachs for US$6.4bn in 2007
• nursing-home operator Castlebeck sold to Lydian Capital Partners for £255m in 2006
• Netcare consortium pays £2.2bn for General Healthcare Group in 2006
• CVC Asia Pacific agrees to buy DCA Group for $1.7bn in 2006
• HCA agrees to US$21bn LBO (plus US$11.7bn debt) in 2006
• Ramsay Health Care pays $1.43bn for Affinity Health in 2005
• Gambro sells US dialysis clinics to DaVita Inc for US$3.1bn in 2004
• Welsh, Carson, Anderson & Stowe acquire US Oncology for US$1.7bn in 2004
• Mayne sells hospitals arm (later Affinity Health) to CVC Asia Pacific and GIC Special Investments consortium for $813m in 2003
• Caremark acquires Advance PCS for US$5.6bn in 2003
• BC Partners pays £405m for Hirslanden private hospital group in 2002
• Triad pays US$2.4bn for Quorum Health Group in 2000
• Mayne pays $380m for Australian Hospital Care in 2000
• Triad Hospitals spun off from HCA in 1999
• HCA acquired in LBO for US$5.1bn in 1988

     studies

Pointers to literature on the M&A in the pharmaceuticals and health services industries (and to individual groups) are found in a supplementary note here.

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