M&A activity soars in fourth quarter 2002 - Industry Watch - healthcare merger and acquisition activity increases - Brief Article

Healthcare Financial Management, April, 2003

The healthcare mergers and acquisitions (M & A) activity market posted strong gains and ended 2002 with a surge in transactions according to Lrving Levin Associates, Inc. In the fourth quarter of 2002, 286 deals were announced, representing an impressive 38 percent increase over the previous quarter, and a 40 percent increase over the fourth quarter in 2001. The dollar value of deals in the fourth quarter of 2002 was $12.1 billion, down from the $68 billion in the third quarter. However, the thrid-quarter statistics reflect Pfizer's proposed acquisition of Pharmacia for $60 billion. Without this acquisition, the fourth quarter's transactions increase by 50 percent.

For the full year, about $101 billion was spent in the healthcare M&A market, up from $75.3 billion in 2001. The pharmaceutical and medical-device segments performed well in the fourth quarter. Nearly 50 percent of the funds expended and 37 percent of the transaction activity were in these two segments. For more information, go to www.levinassociates.com scroll down, and click on "Read About M & A 4th Quarter 2002 Deals."