Pharma BD Deal Intelligence

Aetna Inc. / Coventry Health Care, Inc.

2012 · Acquisition/Merger · $7.3B · Complete

CALLED IT — OFF BY 17
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The coverage arc

Aug 20, 2012 Healthcare Finance News (citing BofA Merrill Lynch) Bullish

BofA Merrill Lynch analyst Kevin Fishbeck noted Aetna had holes to fill in both Medicare and Medicaid and was filling them at multiples 'well below what it…

Aug 20, 2012 RxResource.org Neutral

Aetna to buy Coventry in Medicare and Medicaid expansion, paying $42.08 per share and increasing its government-business revenue share to over 30 percent from…

Aug 20, 2012 TheStreet Bearish

One analyst cautioned: 'We do not see Coventry Health Care as bringing to the table market leading positions in either individual Med Adv or Medicaid,'…

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Aetna acquired Coventry Health Care for $5.7B equity value ($7.3B including ~$1.6B assumed debt). $42.08/share (cash + stock). Expanded government business: 4M medical + 1.5M Medicare Part D members. Note: Payer deal (borderline pharma scope) but commonly tracked in pharma BD trackers given drug-pricing implications.

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Key facts

Related deals — scored

DealYearValueOutcome
Aetna Inc. / Coventry Health Care, Inc. (this deal)2012$7.3B50
Watson Pharmaceuticals (Actavis Inc.) / Actavis plc2012$5.9B97
Kohlberg Kravis Roberts & Co. / PRA International (Genstar Capital)2013$1.3B91
Stryker Corporation / MAKO Surgical Corp.2013$1.6B91
Quintiles Transnational Holdings Inc. / IMS Health Holdings, Inc.2016$17.6B91
DPx Holdings B.V. (JLL Partners 51% / Royal DSM 49%) / Patheon Inc. + DSM Pharmaceutical Products2013$2.6B90
Pamplona Capital Management, LLP / PAREXEL International Corporation2017$5.0B90

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