Week of September 25, 2017 | Vol. 6, Issue 37
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines

Downloads
Complete Transaction Tables
Full Trading Comp Analysis

Quick Links
Who We Are
LinkedIn Corporate Site
LinkedIn M&A Discussion Group

Contact Information

Xan Smith

Managing Director
Business Development

xsmith@bourne-partners.com

Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory
jjohnson@bourne-partners.com

INDUSTRY M&A SNAPSHOT

Above is an overview of recent industry M&A activity. For additional information, see the charts below or follow the link to the left to download complete transaction tables broken out by industry subsectors.

See below for additional information about industry trading comps and transaction relevant articles from the past week.
Catalent bolsters biopharma business with Cook Pharmica buy
U.S. drug contract manufacturer Catalent Inc agreed to buy Cook Pharmica LLC for $950 million in cash as the company doubles down on its fast-growing business of supplying biologics to drugmakers.

Catalent's shares fell as much as 2.8 percent to $38.79 on Tuesday, before recovering slightly.  The deal is the latest in the consolidating global contract manufacturing industry and comes when drugmakers are outsourcing more of their development and manufacturing to cut costs. Swiss pharmaceutical supplier Lonza Group AG last year said it would buy Capsugel, a U.S. maker of capsules and other drug delivery systems, for $5.5 billion. The deal gives Catalent access to Cook Pharmica's Bloomington, Indiana facility, which specializes in developing biologics-based drug compounds or products. Share of biologics, or drugs manufactured from living organisms, will account for about 21 percent of the combined entity's pro-forma revenue, Catalent said on a conference call. Biologics account for about 14 percent of Catalent's consolidated revenue currently.

C ontinue Reading at  Reuters.
Teva Pharma to sell more women's health assets for $1.38 billion
Teva Pharmaceutical Industries Ltd said on Monday it would sell the remaining assets in its specialty women's health business for $1.38 billion in two separate transactions.

Israel-based Teva will use proceeds from these sales, along with those from its recently announced sale of contraceptive brand Paragard, to repay debt, the company said.  CVC Capital Partners Fund VI will pay $703 million in cash for a portfolio in Teva's global women's health business including contraception, fertility, menopause and osteoporosis products, Teva said. Net sales of these products in 2016 amounted to $258 million. Teva also agreed to sell its Plan B One-Step and its brands of emergency contraception to Foundation Consumer Healthcare for $675 million in cash. Combined annual net sales of these products were $140 million last year. Teva last week said it would sell Paragard to a unit of Cooper Companies Inc for $1.1 billion.

C ontinue Reading at  Reuters.

Below are summaries and charts with the past week's transactions from the different healthcare sectors. For a detailed table showing data for each industry transaction click on any of the charts or use the download link above. Total transaction values are provided in USD millions.



 Pharma & Biotech
 12 transactions totaling $1,720 million 
 Supplies, Equipment & Services
 12 transactions totaling $962 million
 Healthcare IT & Managed Care
 3 transactions totaling $5 million
 Healthcare Facilities & Distributors
 6 transactions totaling $77 million





Pharma & Biotech
14 private placements totaling $97 million
Supplies, Equipment & Services
12 private placements totaling $714 million
Healthcare IT & Managed Care
7 private placements totaling $70 million
Healthcare Facilities & Distributors
1 private placements totaling $0


 Pharma & Biotech
 19 public offering totaling $1,037 million
 Supplies, Equipment & Services
 6 public offerings totaling $6 million
 Healthcare IT & Managed Care
 2 public offering totaling $404 million
 Healthcare Facilities & Distributors
 1 public offering totaling $18 milion 

Each week, w e provide updated trading  comps for leading comp anies from numerous healthcare subsectors.

To the right you will see a high-level breakdown of median revenue and EBITDA multiples for each of the specific subsectors 

For a complete trading comp analysis (including the individual equities that comprise the subsectors), click on the table to the right or use the download link from the top of this newsletter. 

Note: data reflects prior week close.
RECENT INDUSTRY HEADLINESRecentIndustryHeadlines
A Sampling of Relevant Industry Headlines from the Last Week

Below are snippets from relevant industry news articles from the past week. For additional information or the article's complete text, click the headline link to view the original publication.
September 22, 2017 - The Wall Street Journal
The Senate is expected to vote next week on legislation from GOP Sens. Lindsey Graham of South Carolina and Bill Cassidy of Louisiana to unwind the Affordable Care Act and redistribute much of its funding to states.  As  the bill has picked up momentum , so have the claims, half-truths and rumors swirling around what could happen next week. Here's a breakdown of what's true and what's not in the week ahead.

September 22, 2017 - Reuters
Japanese drugmaker Tsumura & Co said on Friday Ping An Insurance Group Co of China Ltdwill become its biggest shareholder by acquiring a 10 percent stake for 27.3 billion yen ($243.7 million). Tsumura is well known in Japan as a prescription drugmaker specialized in "kampo" herbal medicine, which traces its roots back to China. In a statement, Tsumura, which has annual revenue of about $980 million, said it will place newly issued shares and treasury stock to Ping An for 3,559.5 yen a share, a 9.4 percent discount to Friday's closing price.

Impax Laboratories in Talks to Merge With Amneal Pharmaceuticals
September 21, 2017 - The Wall Street Journal
Impax Laboratories Inc. is in talks to combine with rival Amneal Pharmaceuticals LLC as the companies seek to build strength in a challenging market for generic-drug makers.  Impax and closely held Amneal are in talks that could yield a transaction next month, assuming they don't fall apart, according to people familiar with the matter. Terms couldn't be learned, but Impax had a market value of about $1.6 billion Thursday morning before The Wall Street Journal reported on the possible deal, meaning a takeover could value it at roughly $2 billion or more.

Will Amazon really get into drug sales? It's in talks with PBMs already, report says
September 21, 2017 -  Fierce Pharma
Rumors that Amazon is looking to parachute into the drug field are getting louder. Amazon is already in talks with pharmacy benefits managers, an analyst reports, and that poses a larger threat to the pharma industry than some might realize.  The retail giant has stayed quiet about its pharma ambitions, but a Goldman Sachs analyst last month outlined some potential pharmaceutical strategies the company might use. Now, Leerink Partners has published a report saying the category-killer is in talks with mid-size PBMs "in an effort to get into various contract arrangements," according to multiple media reports.
UPCOMING EVENTSUpcomingEvents
An Overview of Events Hosted or Attended by the Bourne Partners Team
7th Annual Global Healthcare Executive Summit
October 4, 2017 | Charlotte, NC
As an international, healthcare-focused merchant bank and financial advisory firm, we provide world-class services and capital to middle-market healthcare companies around the globe.  We aim to keep our clients well-informed of healthcare news and events.  With this additional insight in mind, together, we can recognize trends and opportunities that benefit our clients.  We hope that you will reach out to Bourne Partners to help execute your healthcare operational and transactional needs.  To learn more about our firm, visit our website or utilize the links below to engage with us on social media. 

Sincerely,

The Bourne Partners Team

Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407