What's with all the M&A rumors floating around in the animal health world? Just look at Zoetis' Apoquel and it's clear why Big Pharma names are keen to bolster their positions in the space.
Just two months after hiring Bank of America to explore a selloff of its medical-equipment unit, distributor Patterson Companies has found a buyer. The Minnesota company announced on Wednesday that it will be selling Patterson Medical to private equity firm Madison Dearborn Partners for $715 million. The deal is expected to close next quarter.
Patterson Companies is up almost 2% on news that it plans to sell its medical business to private equity firm Madison Dearborn Partners for $715 million in cash. The company has been looking to sell this unit, which is focused on physical rehabilitation products, in order to focus more closely on its higher growth businesses in dental and animal health.
More than a few analysts and company executives are watching Indian drug companies in expectations of consolidation among smaller players and possibly daring moves by mid-cap and larger at home and abroad.
Whether animal health leader Zoetis receives any more buyout offers after Valeant's reported approach remains to be seen. But if it does, Bayer's leaders insist a competing bid won't be coming from them.
Earlier this year, Boehringer Ingelheim said it was considering selling its U.S.-based generics business for up to €2 billion ($2.2 billion) to lighten its load and focus on drug development. Now, the company is moving one step closer to a sale as companies such as Hikma Pharmaceuticals, Mallinckrodt and Perrigo approach the bidding table.
Consultants tell Reuters that large Indian companies are heeding the warnings from regulators and investing more in equipment and training. But some small to medium-sized companies are considering whether to pour money into their operations, retreat from high-profit but regulatory-heavy markets like the U.S. and Europe, or cash out.
Horizon Pharma isn't exactly the only specialty pharma company hunting for deals. Allergan, Mallinckrodt, Endo and the ever-acquisitive Valeant have all been on shopping sprees lately, leaving some analysts wondering just what's left worth buying in the space.
Perrigo was none too fond of Mylan's most recent offer when it made it back in April. Yet it looks like that's the one Mylan's sticking with--at least for now.
Just one day after the Wall Street Journal reported that Valeant had made a buyout bid for Zoetis, sending shares of the animal health giant up 11% to an all-time high of $55.48, investors started doubting the deal would happen. As of Monday's stock market opening, no details about the acquisition attempt had been released, and shares opened trading at just over $48--erasing all the gains that had come from the rumor.