ABC divests Canadian distribution arm to Kohl & Frisch
VALLEY FORGE, Pa. — AmerisourceBergen on Thursday announced that it has divested its Canadian pharmaceutical distribution business, AmerisourceBergen Canada Corporation, to Kohl & Frisch Limited, a Canadian-owned national full-line distributor. ABCC represented approximately 2% of AmerisourceBergen’s total revenues.
The estimated sale price is expected to be between $80 million and $100 million, of which approximately half will be financed by AmerisourceBergen. As a result of the agreement, the Pennsylvania wholesaler expects to record an estimated loss on sale and other impairment charges of between $160 million and $180 million when it reports its quarterly results for the March quarter of fiscal 2013.
The transaction is expected to close in the third quarter of fiscal 2013, and is subject to customary closing conditions, including certain regulatory approvals. AmerisourceBergen will retain its Canadian specialty business.
Report: Private equity firms fueling clinic growth
NEW YORK — Driven by the need for consumers to have access to convenient, cost-effective and quality healthcare services, the number of walk-in health clinics has been on the rise across the country in recent years, and according to a Reuters report, private equity firms are helping to fuel the expansion.
In recent years, at least a dozen private equity firms have invested millions of dollars into urgent care clinics and several private equity executives reportedly told Reuters that they are eager for more acquisitions.
Citing Thomson Reuters data, the article states that private equity firms invested $4 billion in 2012 in health and medical services, which include urgent care, up from $3.5 billion in 2011.
One such example is WellStreet, a chain of walk-in health clinics in Georgia. According to Reuters, Aaron Money of San Francisco-based private equity firm, FFL teamed up with physician Lee Resnick to start WellStreet and, today, FFL owns 70% of the business.
Money told Reuters that he expects business to grow as health reforms under the U.S. Patient Protection and Affordable Care Act kick in.
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FDA approves new MS drug
SILVER SPRING, Md. — The Food and Drug Administration has approved a new treatment for multiple sclerosis made by Biogen Idec, the agency said Wednesday.
The FDA announced the approval of Tecfidera (dimethyl fumarate) capsules for adults with relapsing forms of MS.
"No drug provides a cure for multiple sclerosis, so it is important to have a variety of treatment options available for patients," FDA Division of Neurology Products director Russell Katz said. "Multiple Sclerosis can impair movement, sensation and thinking and have a profound impact on a person’s quality of life."