CSL on hunt as healthcare sector abuzz with deal speculation

While many expect a CSL transaction, there is also talk about the rationale for creating a trans-Tasman IVF provider.

The Australian healthcare sector is buzzing with talk of mergers and acquisitions.

While many expect a CSL transaction, others focus on the rationale for creating a trans-Tasman IVF provider.

A logical target for CSL would be Swiss pharmaceutical company Vifor Pharma, which was in play late last year.

In November Vifor was reportedly fielding a private equity approach said to value the business at around $14bn.

The approach was rebuffed due to differing views on price.

The publicly listed Vifor describes itself as a global leader in iron deficiency therapies. It focuses on nephrology, cardiology and rare diseases and offers a diversified portfolio of prescription and non-prescription medicines.

Based in Zurich, it was previously known as Galencia.

The focus remains on Switzerland for CSL. It has a large manufacturing facility there that remains virtually empty.

With respect to IVF, New Zealand-based Fertility Associates remains on the market through Rothschild some expect that Australian IVF providers such as the listed Monash IVF or Virtus Health will be taking a look.

Virtus has explored an acquisition in New Zealand in the past, but opted out because it is a small market.

It has previously looked to Asia for acquisitions, but the challenge is ensuring they have the same ethical and healthcare standards as Australia.

Alternatively, a buyout fund could buy both Fertility Associates and either Monash or Virtus.

Monash has a $282m market value, so it’s within reach of a number of funds, while Virtus has a $470m market value.

It is worth remembering that there was speculation that Monash was a takeover target about three years ago.