Week of September 24, 2018 | Vol. 7, Issue 38
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Managing Director
Business Development
Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory

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.
Cigna deal gets antitrust nod, positive sign for CVS/Aetna
"We are pleased that the Department of Justice has cleared our transaction and that we are another step closer to completing our merger," Cigna Chief Executive David Cordani said in a statement.

Health insurer Cigna Corp's (CI.N) $52 billion acquisition of pharmacy benefits manager Express Scripts Holding CO has passed U.S. antitrust scrutiny, the companies said on Monday, allowing them to proceed with a combination they say will lead to lower costs by netter coordinating pharmacy and medical benefits. Wall Street analysts had expected antitrust approval as the companies have little overlap in their businesses. The decision bodes well for the pending U.S. antitrust review of CVS Health Corp's (CVS.N) proposed $69 billion acquisition of health insurer Aetna Inc (AET.N). The new company will marry Cigna's business of managing health plans for corporations and the government with Express Scripts' (ESRX.O) role handling pharmacy benefits for those same customers. Express Scripts also owns specialty pharmacies that distribute pricey drugs. "We are please that the Department of Justice has cleared our transaction and that we another step closer to completing our merger," Cigna Chief Executive David Cordani said in a statement.

C ontinue Reading at Reuters .
Medtronic to acquire Mazor in $1.64 billion deal
Medical equipment company Medtronic Plc will acquire Israel-based Mazor Robotics for about $1.64 billion in an all-cash deal, or $1.34 billion net of Medtronic's existing stake in Mazor, the companies said on Thursday.

Medtronic agreed to pay $58.50 per American Depository Share or $29.25 (104.80 shekels) per ordinary share in cash and the boards of both companies unanimously approved the deal. Medtronic, which held a stake of about 11 percent prior to the deal, said the deal was expected to be modestly dilutive to its fiscal 2019 adjusted earnings per share. The company in 2016 had entered a multi-phase strategic partnership in which Medtronic made equity investments in Mazor, a maker of guidance systems for spine and brain surgeries, and distributed its products. The deal is expected to close during Medtronic's third quarter ending January 25, 2019 and is subject to regulatory approvals and agreement from Mazor's shareholders. "The acquisition of Mazor adds robotic-assisted guidance systems to our expanding portfolio of enabling technologies," said Geoff Martha, executive vice president and president of the Restorative Therapies Group at Medtronic. Medtronic said it expects the acquisition "to generate a double-digit return on invested capital by year four, with an increasing contribution thereafter."

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 $245 million
 Supplies, Equipment & Services
 28 transactions totaling $1,540 million
 Healthcare IT & Managed Care
 9 transactions totaling $300 million
 Healthcare Facilities & Distributors
 10 transactions totaling $333 million

Pharma & Biotech
21 private placements totaling $398 million
Supplies, Equipment & Services
27 private placements totaling $387 million
Healthcare IT & Managed Care
13 private placements totaling $107 million
Healthcare Facilities & Distributors
2 private placements totaling $8 million

 Pharma & Biotech
 19 public offering totaling $1,331 million
 Supplies, Equipment & Services
 7 public offerings totaling $120 million
 Healthcare IT & Managed Care
 1 public offering totaling $14 million
 Healthcare Facilities & Distributors
 3 public offerings totaling $155 million

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.
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 21, 2018 - Fierce Biotech
Agenus has sold a portion of the royalties and milestones it is due to receive from Incyte and Merck. Xoma is paying $15 million for one-third of the $600 million in milestones Agenus is in line to pocket and a 10% cut of any royalties.

September 20, 2018 - Reuters
The US$5.05bn term loan for Envision Healthcare is the third massive leveraged loan to hit the market since September and also looks set to benefit from huge institutional demand which has already seen multibillion buyout loans for Thomson Reuters' F&R business, Refinitiv, and Akzo Nobel's Specialty Chemicals business successfully placed.

September 20, 2018 - Bio Space
Shares of Molecular Templates are up more than 52 percent in premarket trading after the company announced it has struck a deal with pharma giant Takeda Pharmaceuticals that could be worth up to $632 million to develop CD38-targeted engineered toxin bodies (ETBs).

September 19, 2018 - Bio Space
Nuvo Pharmaceuticals Inc. (Nuvo or the Company), a globally focused, healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, today announced the signing of definitive, binding purchase agreements with Aralez Pharmaceuticals Inc. (Aralez) to acquire a portfolio of more than 20 revenue-generating products, as well as the associated personnel and infrastructure to continue the products' management and growth (the Proposed Transaction or the Transaction). 
September 19, 2018 -  Bio Space
According to  BioPharmCatalyst, there have been (or soon will be) 58 biopharma initial public offerings (IPOs) in 2018, and there's still more than three months to go. The first listed on the BioPharmCatalyst database was Menlo Therapeutics on January 25, 2018. The most recent listing was Elanco Animal Health , whose offer date is September 21, 2018.

September 18, 2018 - Bio Space
Cannabics Pharmaceuticals Inc. (OTC: CNBX), a leader in personalized cannabinoid medicine focused on cancer and its side effects, today announced that its partner, Eroll Grow Tech (Seedo), has acquired the majority of shares in GRCR partners, which is publicly traded on the OTC market under the symbol GRCR, as announced yesterday.

September 17, 2018 - Bio Space
Samumed LLC has entered an exclusive license agreement with United Therapeutics Corporation (Nasdaq: UTHR) for North American rights to Samumed's SM04646, being developed for the treatment of idiopathic pulmonary fibrosis (IPF). Deal terms include $10 million up-front, plus up to $340 million in developmental milestones and up to low double-digit royalties.

September 17, 2018 - Fierce Biotech
Just two weeks after launching the first company-backed trial of a CRISPR treatment, CRISPR Therapeutics inked a deal with ViaCyte to develop off-the-shelf, gene-edited stem cell therapies for diabetes. ViaCyte is picking up $15 million upfront, with a potential $10 million to follow.

Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
September 27 - 28, 2018 | New Brunswick, NJ
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. 


The Bourne Partners Team

Bourne Partners
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