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Top of the Morning
Becton Dickinson & Co. (NYSE: BDX) has agreed to acquire C.R. Bard (NYSE: BCR), a Murray Hill, N.J.-based maker of oncological, vascular and surgical products, for $24 billion in cash and stock. The $317 per share value represents a 25% premium over Friday's closing price.
- Why it's the BFD: Really? You need more than $24 billion, which tops BD's $12 billion purchase of CareFusion in 2015? Okay, because this deal immediately evolves BD from a diabetes-focused company (at least in its medical unit, which makes up half its $12.4b in revenue) into one that also can handle oncology, vascular, urology and surgical. Plus it could help BD catch up outside of the U.S., where Bard already has around 500 products for sale.
- Bottom line: "BD and other medical device companies are attempting to offset pricing pressure from consolidating hospitals and health systems through their own mergers — creating an arms race in health care over market power. More of these deals are likely, especially if the resulting medical device company can serve more as a one-stop shop for hospitals." ― Bob Herman, Axios
• Argenx, a Dutch developer of antibody-based therapies for the treatment of severe autoimmune diseases and cancer, has filed for a $75 million IPO. It plans to trade on the Nasdaq under ticker symbol ARGX, with Cowen & Co. listed as left lead underwriter. Shareholders include Forbion Capital (10.56% pre-IPO stake), Life Sciences Partners (8.52%), Federated Investors (7.36%), Shire (7.01%) and Percentive Advisors (5.59%). www.argen-x.com