Stay current on changes and developments in corporate law with a wide variety of resources and tools.
Dec. 21 — While mergers and acquisitions in the health-care sector likely will remain robust in 2016, ongoing enforcement activity may serve to slow deal growth, John Shire, partner in the Washington office of Fox Rothschild LLP, told Bloomberg BNA in an interview Dec. 17.
Shire, who represents sell-side and buy-side health-care companies in mergers and acquisitions, noted that there is government oversight from the Federal Trade Commission, the Justice Department, the U.S. Food and Drug Administration and their European counterparts.
To the extent that these entities and agencies increase their activity, “that could serve as a roadblock to future” M&A transactions, Shire said.
The health-care industry is consolidating at a furious pace, in part fueled by low lending costs, the search for efficiencies and even the Affordable Care Act, Shire said.
Among the mega transactions, Aetna Inc.'s $37 billion proposed acquisition of Humana Inc. continues to be scrutinized by the DOJ and FTC. Also under review is Anthem Inc.'s plan to buy Cigna Corp. for $54 billion.
The largest health-care deal of the year, the $160 billion combination of Pfizer Inc. and Allergan Plc., was announced Nov. 23, and it pushed annual global M&A volumes to a then-new record of $3.42 trillion, according to Bloomberg data.
Shire said he expects consolidations to continue in the life-sciences and biotechnology sectors, as well as among companies that make brand-name and generic products, as they all look for efficiencies.
Hospitals and health-services companies will also continue on a strong M&A pace, spurred on by regulations that are creating incentives for alignments, he added.
To contact the reporter on this story: Che Odom in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
The interview is available at http://www.bna.com/2016-ma-predictions-m57982065401/.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)