Healthcare

Biotech has mixed record on 30th anniversary

6 Jan 2006

The industry may have bright prospects, but biotech stocks have not been a cureall. Returns have been unevenly distributed and volatile. The market doesn t appear as attractive now as it did in 2002. But some value probably resides in the biotech minnows.

Boston Scientific debt deal sign of buoyant times

13 Dec 2005

The medical devices maker has been able to borrow $14bn at thin margins to buy Guidant despite its aggressive leverage. Following hard on the heels of Koch s $11bn mega loan, Boston s deal shows just how eager banks are to lend.

HealthSouth turncoat had it coming

12 Dec 2005

The 5year sentence for the former HealthSouth finance officer who testified against acquitted boss Scrushy may look harsh. But it's wrong to conclude he s paying for Scrushy. There s a lesson here for cooperating witnesses in future fraud trials.

Boston Scientific springs $25bn Guidant bid

5 Dec 2005

The surprise counterbid puts J&J on the back foot. It cut its bid, saying Guidant was worth less than it thought. Raising now would be hard. Boston's tactics have been smart, but has it also been smart on value? The fall in its share price suggests investors aren't yet convinced. Boston's tactics have been smart. But has the group been smart on value?

Smith & Nephew shares look cheap

27 Oct 2005

The UK orthopaedic group s shares have sunk to a twoyear low over concern that implant prices will stagnate. This is overblown. The market should see 15% sales growth for years, as an older and obese population needs more joints replaced.

Fresenius spending spree continues

14 Oct 2005

The German medical group is determined to play a leading role in the consolidation of the country s fragmented healthcare market. But Fresenius is paying a full price for the Helios hospital chain.

ABN Amro wins E1.3bn auction for The Priory

5 Jul 2005

The Dutch bank outbid its financial sponsor clients to nab the UK s renowned mental health clinic for a price well above what was expected. This is more than just a principal investment. ABN hopes to award itself financing, hedging and even M&A mandates as the company grows.

Market cools to healthcare IPOs

20 May 2005

This was supposed to be the year European companies would raise boatloads of money. It isn t. Prostrakan is the latest and largest group to try its luck. It may be a better bet than most, but the window is closing.

Investors should block Fresenius transformation

16 May 2005

The dialysis group plans to simplify its capital structure but also adopt a legal form that vests more control with the family company. Ordinary shareholders have little to gain from this change. And it may result in FMC trading at a discount.

Johnson & Johnson shells out $24bn for Guidant

16 Dec 2004

The price suggests that the US healthcare giant is destroying a slight amount of capital in exchange for growth. One wild card: combining the two groups technologies could yield synergies. But any resulting products aren't likely until 2008.

Smiths’ conglomerate strategy works – for now

10 Dec 2004

Investors cheered the UK engineering group s acquisition of Medex. Its four pillars haven t landed it with much of a conglomerate discount. More bolton acquisitions could make sense. But in the long term, the best option may still be to break itself up.

Can private equity make money from nursing homes?

1 Dec 2004

Funds have bought up most of the major UK nursing companies in hopes of getting in on the growing market. But the high prices being paid, and the limited scope for cost cutting could make outsize returns a thing of the past.

Rentokil’s margins keep on shrinking

30 Nov 2004

A quick turnaround for the troubled UK services conglomerate was never on the cards. But the announced disposal of its linens business and increased investment mean the company is on the right track.

Healthcare IPOs face varied receptions

23 Jun 2004

The successful float of Czech generic drug company Zentiva shows investors have some appetite for growth. But while IPOs of stable companies such as Biomerieux should get a warm reception, signs are higherrisk biotechs won t.

US hostile deal offers arb opportunity

28 May 2004

At first glance, Omnicare looks like it will struggle to clinch the $1.3bn takeover of rival Neighborcare. But look again, the omens and both firms' rising stock prices suggest there is a deal to be done and money to be made.

Nestle slightly loosens L’Oreal impasse

4 Feb 2004

Nestle now has a direct stake in L Oreal, rather than a minority position in the parent and no longer risks having to buy the whole group. But the only way something could move in the shortterm is if there was a bid for L Oreal. And that doesn t look terribly likely.

Smith & Nephew offers £1.5bn for Centerpulse

20 Mar 2003

There is strategic logic to combining the orthopaedics groups. They need scale economies to fund research and development. The tiny premium offered may suggest the UK group has got a bargain. A returns analysis suggests otherwise.

The time may be ripe for a takeover of Centerpulse, says David Reilly.

15 Nov 2002

Heard in Europe: Nobel Biocare’s hopes for stock price bolster

7 Oct 2002

Heard in Europe: Smith & Nephew nixes hopes for merger

2 Aug 2002