According to a recently released study, healthcare M&A deals seem to be growing in size, even if they fell in volume last quarter. In the third quarter of 2006, there were 237 mergers and acquisitions in the healthcare sector, representing a 13 percent drop from the previous quarter, according to research by Irving Levin Associates. But the value of deals totaled $74.2 billion this quarter, almost twice as much as the $50.3 billion spend in the third quarter of 2005. The massive HCA deal made healthcare services segment the segment that attracted the most capital. Biotechnology and pharmaceutical sector deals were also strong segments as more companies focus on licensing and developing drugs to sustain their pipelines. Deals in the long-term care sector also remained high.
For more background on the research:
- see this press release from Irving Levin Associates