Health Care M&A Volume Rises In Services Sectors, Falls Off In Technology Sectors

Apr 12, 2001, 01:00 ET from Irving Levin Associates, Inc.

    NEW CANAAN, Conn., April 12 /PRNewswire/ -- With 184 deals announced in
 the first quarter of 2001, overall merger and acquisition activity in the
 health care industry declined by 23% from the 238 deals announced in the
 previous quarter.  Deal volume among the nine health care services sectors
 increased by 15%, but fell by 23% in the four health care technology sectors,
 according to Irving Levin Associates, Inc., a research and health care
 publishing firm.  Even so, in its first quarter 2001 Health Care M&A Report
 (http://www.healthcaremanda.com), the firm reports that the technology segment
 continued to account for 75% of the total $20.8 billion spent in these deals,
 virtually level with the 74% of the $28.6 billion spent in the fourth quarter
 of 2000.
 
                           The Health Care M&A Market
                    First Quarter 2001 Deal Volume By Sector
 
                                            Q4:00              Q1:00
                             Q1:01                  %                %
     Sector                  Deals     Deals     Change    Deals   Change
     Services:
     Hospitals                21        20         +5%       21       0%
     Laboratories             18        15        +20%       16     +13%
     Physician Medical Gps.   15         8        +88%       20     -25%
     Long-Term Care            8         7        +14%       13     -38%
     Home Health               7         2       +250%        7       0%
     Managed Care              7        13        -46%       16     -56%
     Behavioral Health         3         6        -50%        7     -57%
     Rehabilitation            3         2        +50%        1    +200%
     Other                    23        19        +21%       22      +5%
       Services Subtotal     105        91        +15%      123     -15%
 
     Technology:
     Medical Devices          40        41         -2%
     e-Health                 18        45        -60%
     Biotechnology            11        34        -68%
     Pharmaceuticals          10        27        -63%
       Technology Subtotal:   79       148        -47%
     Grand Total             184       238        -23%      123
 
     "Health care technology continues to capture the lion's share of interest
 in the investment community," noted Stephen M. Monroe, a partner and managing
 editor at the firm.  "With 40 deals announced for the quarter, the Medical
 Device sector posted nearly twice as many transactions as the second-place
 Hospital sector," Mr. Monroe added.  Moreover, of the first quarter's total
 dollar value of $20.8 billion for all the deals announced, the Pharmaceutical
 sector alone accounted for $14.2 billion, or 68% of the total.
     Deals in the services segment may now be regaining some momentum.  "While
 the post-acute and ancillary sectors continue to languish, certain core
 sectors are registering significant activity.  Deals by pharmacy benefit
 managers, hospital operators and practice management organizations accounted
 for $4.6 billion of the first quarter's M&A activity," stated Sanford B.
 Steever, editor of the report.
 
     Irving Levin Associates, Inc. is a New Canaan, Connecticut-based research
 and publishing firm specializing in health care investments.  The firm has
 over 50 years of experience in the health care acquisition market.  To
 purchase The Health Care M&A Report, consisting of four quarterly reports, 12
 monthly newsletters and 50 weekly bulletins, please call 1-800-248-1668.
 
 

SOURCE Irving Levin Associates, Inc.
    NEW CANAAN, Conn., April 12 /PRNewswire/ -- With 184 deals announced in
 the first quarter of 2001, overall merger and acquisition activity in the
 health care industry declined by 23% from the 238 deals announced in the
 previous quarter.  Deal volume among the nine health care services sectors
 increased by 15%, but fell by 23% in the four health care technology sectors,
 according to Irving Levin Associates, Inc., a research and health care
 publishing firm.  Even so, in its first quarter 2001 Health Care M&A Report
 (http://www.healthcaremanda.com), the firm reports that the technology segment
 continued to account for 75% of the total $20.8 billion spent in these deals,
 virtually level with the 74% of the $28.6 billion spent in the fourth quarter
 of 2000.
 
                           The Health Care M&A Market
                    First Quarter 2001 Deal Volume By Sector
 
                                            Q4:00              Q1:00
                             Q1:01                  %                %
     Sector                  Deals     Deals     Change    Deals   Change
     Services:
     Hospitals                21        20         +5%       21       0%
     Laboratories             18        15        +20%       16     +13%
     Physician Medical Gps.   15         8        +88%       20     -25%
     Long-Term Care            8         7        +14%       13     -38%
     Home Health               7         2       +250%        7       0%
     Managed Care              7        13        -46%       16     -56%
     Behavioral Health         3         6        -50%        7     -57%
     Rehabilitation            3         2        +50%        1    +200%
     Other                    23        19        +21%       22      +5%
       Services Subtotal     105        91        +15%      123     -15%
 
     Technology:
     Medical Devices          40        41         -2%
     e-Health                 18        45        -60%
     Biotechnology            11        34        -68%
     Pharmaceuticals          10        27        -63%
       Technology Subtotal:   79       148        -47%
     Grand Total             184       238        -23%      123
 
     "Health care technology continues to capture the lion's share of interest
 in the investment community," noted Stephen M. Monroe, a partner and managing
 editor at the firm.  "With 40 deals announced for the quarter, the Medical
 Device sector posted nearly twice as many transactions as the second-place
 Hospital sector," Mr. Monroe added.  Moreover, of the first quarter's total
 dollar value of $20.8 billion for all the deals announced, the Pharmaceutical
 sector alone accounted for $14.2 billion, or 68% of the total.
     Deals in the services segment may now be regaining some momentum.  "While
 the post-acute and ancillary sectors continue to languish, certain core
 sectors are registering significant activity.  Deals by pharmacy benefit
 managers, hospital operators and practice management organizations accounted
 for $4.6 billion of the first quarter's M&A activity," stated Sanford B.
 Steever, editor of the report.
 
     Irving Levin Associates, Inc. is a New Canaan, Connecticut-based research
 and publishing firm specializing in health care investments.  The firm has
 over 50 years of experience in the health care acquisition market.  To
 purchase The Health Care M&A Report, consisting of four quarterly reports, 12
 monthly newsletters and 50 weekly bulletins, please call 1-800-248-1668.
 
 SOURCE  Irving Levin Associates, Inc.