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Healthcare M&A Activity Drops 9% in Q2:22, According to Data from Irving Levin Associates, LLC

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“Going forward, we believe investors will see the value in healthcare M&A transactions relative to other industries with an aging population and the potential for high growth and high returns.”


NEW CANAAN, Conn. (PRWEB)

Healthcare merger and acquisition activity experienced close to a double-digit percentage decline in deal volume during the second quarter of 2022, falling to 568 publicly announced deals, according to new data from Irving Levin Associates as captured on its LevinPro HC platform.

“Healthcare M&A faced numerous headwinds during the second quarter,” said Glenn Kalinoski, Editor of Healthcare at Irving Levin Associates. “Uncertainty regarding the economy, rampant speculation about the U.S. heading into a recession, a bear market on Wall Street and a volatile interest-rate environment were all on the minds of potential investors.”

By contrast, healthcare M&A deals reached 622 in Q1:22, producing a 9% drop in Q2:22. The e-Health sector experienced a 36% decline, with 118 deals in Q1:22 and 75 transactions in Q2:22. The Rehab sector had 28 deals in Q1:22 and 20 in Q2:22 for a 29% drop.

The top sector in Q2:22 was Physician Medical Groups with 142 deals followed by 130 for Other Services, which include staffing companies, ambulatory surgical centers, urgent care centers and other ancillary healthcare services.

Healthcare M&A deal value totals also revealed quarterly declines. The total disclosed dollars spent fell from $119.7 billion in Q2:21 and $66.8 billion in Q1:22 to $50.3 billion in Q2:22.

Year over year, however, activity increased 17% from the 484 transactions reported in Q2:21. The Medical Devices sector produced only 21 transactions in Q2:21, but deal volume jumped to 43 in Q2:22 for a 105% increase. The increase in activity for the Pharmaceuticals sector was more impressive. The category generated only nine deals in Q2:21, but the number reached 20 in Q2:22, producing a 122% increase.

“Going forward, we believe investors will see the value in healthcare M&A transactions relative to other industries with an aging population and the potential for high growth and high returns,” Mr. Kalinoski said.

Notable deals that were reported during the second quarter included Pfizer Inc.’s acquisition of Biohaven Pharmaceutical Holding Company Limited for $11.6 billion. Also, Bristol Myers Squibb purchased Turning Point Therapeutics, Inc. for $4.1 billion.

All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.

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