Week of March 5, 2018 | Vol. 7, Issue 9
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In This Issue
Downloads
Quick Links
Contact Information
Managing Director
Business Development
Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory
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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.
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PEAR Therapeutics To Collaborate With Novartis To Develop Prescription Digital Therapeutics
Pear Therapeutics has entered into a collaboration with Novartis
to develop novel prescription digital therapeutics for schizophrenia and multiple sclerosis.
These digital therapeutics are software applications designed to effectively improve clinical outcomes for patients. The collaboration brings together Novartis' expertise in neurological disorders, clinical development, and commercialization with PEAR's leading experience in prescription digital therapeutic design and implementation.
The two companies plan to pursue approval for PEAR's existing THRIVE™ digital therapeutic, which is a late stage therapeutic asset, supported by proof-of-concept efficacy data as well as long-term engagement data, across three clinical studies, consisting of over 1,000 patients diagnosed with schizophrenia. The parties will work together to develop a new therapeutic application to alleviate disease burden in patients with MS, which they will then seek to validate in clinical studies. PEAR's prescription digital therapeutics are clinically-validated, FDA-regulated software applications that deliver evidence-based interventions to patients through mobile applications. Once FDA-cleared, they may be prescribed alongside drug therapies and have the potential to be developed to treat a range of diseases.
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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.
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Pharma & Biotech
10 transactions totaling $75 million
Supplies, Equipment & Services
13 transactions totaling $49 million
Healthcare IT & Managed Care
3 transactions totaling $460 million
Healthcare Facilities & Distributors
9 transactions totaling $214 million
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Pharma & Biotech
25 private placements totaling $757 million
Supplies, Equipment & Services
14 private placements totaling $109 million
Healthcare IT & Managed Care
5 private placements totaling $18 million
Healthcare Facilities & Distributors
0 private placements
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Pharma & Biotech
10 public offerings totaling $385 million
Supplies, Equipment & Services
11 public offerings totaling $1,674 million
Healthcare IT & Managed Care
1 public offering totaling $847 million
Healthcare Facilities & Distributors
1 public offering totaling $6 million
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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 sub sectors.
For a complete trading comp analysis (including the individual equities that comprise the sub sectors), click on the table to the right or use the download link from the top of this newsletter.
Note: data reflects prior week close.
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RECENT INDUSTRY HEADLINES
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.
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March 2, 2018 -
BioSpace
Brooks Rehabilitation, an industry leader in post-acute physical rehabilitation, announced today its partnership with Japanese medical and social innovation company, CYBERDYNE, INC., to introduce and make available the world's first advanced robotic treatment device that has been shown to improve a patient's ability to walk. Individuals with spinal cord injuries can now access FDA-cleared HAL, which is short for Hybrid Assistive Limb, at the Brooks Cybernic* Treatment Center in Jacksonville, FL. The Treatment Center is currently the only facility in the U.S. offering this innovative treatment.
March 2, 2018 -
BioSpace
Royal Philips, a global leader in health technology, and Hologic, Inc.
(Nasdaq: HOLX), an innovative women's health company, announced today a global partnership agreement to offer care professionals integrated solutions comprising diagnostic imaging modalities, advanced informatics and services for screening, diagnosis and treatment of women across the world. The collaboration combines Hologic's innovative mammography technologies and Philips' leading portfolio of ultrasound, MRI, CT, and X-ray systems, advanced informatics and broad range of services, including maintenance, upgrade, training and operational performance management services.
March 1, 2018 -
Fierce Biotech
Rubius Therapeutics has pulled in another $100 million to fund the advance of its red blood cell therapies. The crossover round, which brings Rubius' nine-month haul up to $220 million, comes as the Flagship Pioneering startup races to get its manufacturing and clinical development activities up and running.
Cambridge, Massachusetts-based Rubius is built upon technology that turns donors' hematopoietic stem cells into enucleated, protein-expressing red blood cells. Expressing certain proteins on the cell surface results in anticancer therapies. If two or more proteins are expressed on the surface, the cell becomes a standalone immuno-oncology cocktail designed to deliver one-two punches such as the lowering of tumor defenses and orchestration of immune attacks.
March 1, 2018 -
Fierce Pharma
Mylan, like the rest of its generics peers, is suffering in the U.S. thanks to stepped-up pricing pressure. But it's hoping a new biosimilar can eventually help its stateside sales.
Wednesday, the company said it had teamed up with Revance on a cheaper copy of Allergan blockbuster Botox, a partnership Bernstein analyst Ronny Gal labeled a "smart move."
Fresenius' $4.3B buyout of Akorn threatened by data integrity probe
February 27, 2018 -
Fierce Pharma
Fresenius and Akorn say they are investigating whether Akorn violated FDA drug development standards, and that the results of the probe could scuttle the German's drugmaker's $4.3 billion deal to buy the U.S. generics maker.
In a statement late Monday, Akorn said the two companies, with the help of of outside consultants, are investigating "alleged breaches of FDA data integrity requirements relating to product development." It said so far the investigation hasn't found anything that would affect Akorn finances materially and that it "does not believe this investigation should affect the closing of the transaction with Fresenius."
A CRISPR cure for Huntington's?
February 26, 2018 -
Fierce Biotech
The gene editing system CRISPR-Cas9 has generated excitement in scientific circles for its potential to cure diseases caused by a single defective gene, including the progressive neurological disorder Huntington's. But editing genes with this technology is risky because cutting strands of DNA can lead to unintentional gene edits, causing dangerous off-target effects.
Scientists at the Institute of Bioorganic Chemistry in Poland are making progress perfecting a new CRISPR-Cas9 technology that they believe will facilitate precise editing of the Huntington's gene. It involves using a variant of the Cas9 protein, they said in a statement.
BenevolentAI's Proximagen buy creates first AI firm capable of entire drug R&D
February 26, 2018 -
Fierce Biotech
Ken Mulvany left his CEO post at Proximagen to found artificial intelligence firm BenevolentAI (originally known as Stratified Medical) in 2013. Now, having successfully grown the business into a bioinformatics unicorn, he has gone back and bought up part of his former employer.
BenevolentAI bought Proximagen's U.K. operations-a drug discovery and development facility on the Babraham Research Campus in Cambridge-for an undisclosed sum. It allows BenevolentAI to cover the entire drug R&D process, the first time an AI company is able to do so, said the company.
At the Doctor's Office, Expect Better, More Reliable Flu Tests
February 24, 2018 -
The Wall Street Journal
Determining if you have the flu isn't always easy-even with a trip to the ER.
Doctors often skip the type of diagnostic tests that can deliver results within minutes of a nasal swab, believing they're unreliable. More accurate tests take longer to return results, and doctors sometimes prefer to prescribe antiviral drugs or other treatment based on symptoms rather than wait.
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PARTNERING AND M&A OPPORTUNITIES
Current Opportunities Available Through Bourne Partners
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Southeastern US | CDMO | Approximately $85mm Revenue | Approximately $8mm EBITDA
Project Ocean
Sell-side M&A
Northeastern US | CDMO | Approximately $6mm Revenue | EBITDA disclosed with NDA
Project Magnolia
Sell-side M&A
Mid-Atlantic US | CRO | Approximately $25mm Revenue | EBITDA disclosed with NDA
Project Limestone
Asset Divestiture
Southeastern US | ANDAs and Manufacturing Equipment | ANDA Revenue disclosed with NDA
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UPCOMING EVENTS
An Overview of Events Hosted or Attended by the Bourne Partners Team
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April 30 - May 6, 2018
| Quail Hollow Club |
Charlotte, NC
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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
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STAY CONNECTED
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