Week of September 18, 2017 | Vol. 6, Issue 36
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Teva to sell contraceptive brand Paragard in $1.1 billion deal
Teva Pharmaceutical Industries agreed to sell its contraceptive brand Paragard to a unit of Cooper Cos, on a day the struggling Israeli drugmaker named industry veteran Kare Shultz as CEO.
The company's U.S.-listed shares were up 1.4 percent at $18.75 in extended trading after closing up 19.3 percent in regular trading.
The sale of the business is the first step in the planned divestment of non-core assets and the proceeds would be used to repay term loan debt, Teva said. Saddled with about $35 billion in debt, Teva has speeded up plans to divest non-core assets, Reuters reported last month, citing sources. "Investors will like this news, as in addition to a good price for the asset, and the recent share decline has been likely due in part to investor worries that the debt burden is high," Wells Fargo Securities analyst David Maris said in a note. Teva's U.S.-listed stock has halved since early August when it cut its forecasts. The company said on Monday it continued to look for divestiture opportunities, including the sale of the remaining assets of its global women's health business, as well as its oncology and pain businesses in Europe.
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Centene to buy Fidelis Care for $3.75 billion to enter New York
Centene Corp
said it would buy privately held Fidelis Care to enter New York, the second largest managed care state by membership in the U.S.
Health insurer Centene Corp (CNC.N) agreed to acquire Fidelis Care for $3.75 billion. The company's stock rose 6.7 percent to $97 in aftermarket trading on Tuesday.
The acquisition would help Centene expand its government sponsored healthcare coverage with a leadership position in New York, the company said. Fidelis Care, a not-for-profit corporation, offers affordable health insurance coverage to New York residents and has over 1.6 million members in the state as of June 30. Centene said the deal, which is expected to close in the first quarter of 2018, would significantly improve the company's earnings per share. Allen & Company LLC was the financial adviser to Centene and Skadden its legal counsel. Citi was the financial adviser to Fidelis Care and Norton Rose Fulbright its legal counsel.
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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
6 transactions totaling $1 million
Supplies, Equipment & Services
19 transactions totaling $1,233 million
Healthcare IT & Managed Care
3 transactions totaling $0
Healthcare Facilities & Distributors
11 transactions totaling $3 million
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Pharma & Biotech
23 private placements totaling $576 million
Supplies, Equipment & Services
17 private placements totaling $635 million
Healthcare IT & Managed Care
10 private placements totaling $72 million
Healthcare Facilities & Distributors
4 private placements totaling $22 million
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Pharma & Biotech
18 public offering totaling $3,871 million
Supplies, Equipment & Services
2 public offerings totaling $966 million
Healthcare IT & Managed Care
1 public offering totaling $503 million
Healthcare Facilities & Distributors
1 public offering totaling $0
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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 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.
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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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Halozyme to license drug delivery tech to Roche, Bristol-Myers
September 14, 2017 - Reuters
U.S. drugmaker Halozyme Therapeutics Inc said on Thursday it would license its drug delivery technology to Bristol-Myers Squibb Co and Swiss drugmaker Roche in separate collaborations.
Shares of Halozyme rose 12.7 percent to $14.85 in premarket trading after the company also raised its 2017 revenue forecast as a result of the deals. The company now expects full-year revenue of $245 million to $260 million, compared with an earlier forecast of $115 million to $130 million.
Rocket to merge with Inotek to bag Nasdaq listing, plots gene therapy trials
September 13, 2017 - Fierce Biotech
Rocket Pharmaceuticals has landed
a Nasdaq listing through a reverse merger. The deal will see the low-profile gene therapy startup merge with floundering Inotek Pharmaceuticals before embarking on a clutch of clinical trials. Shareholders in Rocket will own 81% of the combined company, leaving the Inotek stockholders who stuck around after back-to-back glaucoma failures with 19%. That stake reflects the value of Inotek's Nasdaq listing and whatever is left of the $27.6 million in cash it had at the last count. New York, NY-based Rocket will combine that money with the $25 million it raised from a group of investors including RTW Investments, Cormorant Asset Management and Tavistock Group earlier this year and kick off a multi-front clinical development program. Rocket plans to move into human testing in 2018 and have as many as four trials on the go before the end of the year.
September 12, 2017 - The Wall Street Journal
A year ago, an 11-year-old girl named London Secor had surgery at the Mayo Clinic to remove a rare tumor located in her pelvis. In the past, surgeons would have considered amputating one of Ms. Secor's legs, given that the tumor had spread to the bone and nerves of her sacrum and was encroaching on her hip socket.
That didn't happen this time, however, due largely to advances in 3-D printing.
Bayer says sells 1.2 billion euros of Covestro shares
September 12, 2017 -
Reuters
German drugs and pesticides group Bayer
is selling 1.2 billion euros ($1.4 billion) worth of Covestro
shares under its plan to fully sever ties with the plastics business over the medium-term. The company, which is trying to wrap up the $66 billion takeover of U.S. seeds giant Monsanto by the end of the year, did not specify how many shares in Covestro it would sell for the targeted sum. Based on Tuesday's closing price, the stake for sale would represent about 9 percent of Covestro but the percentage will probably be higher since a block of shares of that size is typically placed at a discount.
South Africa's Adcock Ingram to acquire Genop Holdings
September 12, 2017 - Reuters
South African drugmaker Adcock Ingram will buy contact lenses, surgical and skincare products supplier Genop Holdings, it said on Tuesday, a deal that gives it a company with 400 million rand ($31 million) in annual sales.
Adcock did not disclose the financial details of the deal, which forms part of the strategy to cut its reliance on prescription drugs, whose prices are regulated. Genop specializes in surgical and pharmaceutical products in the ophthalmic, optometry, skincare, aesthetic and plastic surgery sectors in southern Africa.
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UPCOMING EVENTS
An Overview of Events Hosted or Attended by the Bourne Partners Team
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7th Annual Global Healthcare Executive Summit
October 4, 2017 | 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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