Week of August 21, 2017 | Vol. 6, Issue 32
Please Note:  We have recently changed the title of our Weekly Newsletter from "Pharma And Healthcare M&A Update" to "Healthcare Trends And Transactions". The content remains the same, but we feel this title better reflects the scope of the information provided. We appreciate your continued interest in receiving weekly content on the Healthcare industry. 

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.
Buyout firms get German generics group Stada at second try
Bain Capital and Cinven have won control of Germany's Stada with a sweetened $6.2 billion bid for the generic drugmaker, in the largest takeover of a listed German company by buyout firms.

Months of uncertainty for Stada ended as investors tendered by the Wednesday deadline 63.85 percent of its shares, more than the 63 percent minimum acceptance threshold, the private equity groups said on Friday.  "We are pleased that the question of the future ownership structure has now been settled," Engelbert Coster Tjeenk Willink, Stada's chief executive, said in a statement. Buyout firms have been flush with cash after selling assets and borrowing cheaply and healthcare is a prime target for them due to its reliable cash flows and long-term growth prospects. Although the Stada bidders had lowered the minimum level from 67.5 percent, after their first offer yielded acceptances of only 65.52 percent, the second attempt was still "very, very close," a banker familiar with the process said.

C ontinue Reading at  Reuters.
Arcus adds WuXi Biologics-developed PD-1 drug under $816M deal
The deal  grants Arcus North American, European and Japanese rights to GLS-010, an anti-PD-1 antibody Gloria Pharmaceuticals has contracted WuXi Biologics to develop, using Ligand Pharmaceuticals' transgenic rat platform OmniRat. 

Arcus Biosciences CEO Terry Rosen told FierceBiotech last year that checkpoint inhibitor research is "something to double down on-we're going to bet big ," and he just did, through an exclusive licensing deal that could amount to $816 million. The Chinese companies stand to collect $18.5 million up front, $422.5 million from development and regulatory milestones, plus up to $375 million for commercialization. After getting exclusivity to GLS-010, Arcus is planning to pair the checkpoint inhibitor in 11 cancer combo therapies. It also agreed to pay tiered royalties that range from the high single-digits to low double-digits on net sales of treatments that use GLS-010. Although the checkpoint inhibitor realm already has Merck & Co., Bristol-Myers Squibb, Roche, AstraZeneca and a partnership between Pfizer and Merck KGaA, latecomers apparently are not giving up. Just about a month ago, Celgene got its hands on a PD-1 drug in a potential $1.4 billion deal with China's BeiGene. Back in 2015, Incyte inked a $795 million PD-1 deal also with a Chinese company, Jiangsu Hengrui Medicine, getting ex-China rights to SHR-1210.

C ontinue Reading at  Fierce Biotech.

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
 7 transactions totaling $63 million 
 Supplies, Equipment & Services
 13 transactions totaling $79 million
 Healthcare IT & Managed Care
 4 transactions totaling $250 million
 Healthcare Facilities & Distributors
 17 transactions totaling $674 million





Pharma & Biotech
19 private placements totaling $166 million
Supplies, Equipment & Services
10 private placements totaling $144 million
Healthcare IT & Managed Care
9 private placements totaling $61 million
Healthcare Facilities & Distributors
0 private placements 


 Pharma & Biotech
 11 public offering totaling $695 million
 Supplies, Equipment & Services
 10 public offerings totaling $1,316 million
 Healthcare IT & Managed Care
 0 public offerings
 Healthcare Facilities & Distributors
 1 public offering totaling $0 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 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.
August 17, 2017 -  Fierce Biotech
U.S. oncology specialist Cancer Genetics will pay $12 million to buy out Australian contract research organization vivoPharm as it looks to bolster its offerings.  Cancer Genetics (CGI) says the deal will boost its position "as a premier leader for oncology discovery, in vivo and in vitro drug development and early phase clinical trial testing for biotechnology and pharmaceutical companies." It buys into vivoPharm, a firm that has spent 10 years offering discovery and preclinical services to support drug development, target validation and biomarker analysis, with a big focus on immuno-oncology.

China's Fosun, Shanghai Pharma say bid for stake in U.S. drugmaker Arbor
August 14, 2017 - Reuters
A unit of China's Fosun Group and Shanghai Pharmaceuticals Holding Co  are among bidders for a stake in U.S. speciality drugmaker Arbor Pharmaceuticals LLC, the companies said on Monday. The bids come as Chinese companies face tightening scrutiny on their overseas investments. Chinese regulators are reviewing deal agreements in minute details, and have cracked down on some large domestic conglomerates, including Fosun, for their debt-fuelled acquisitions abroad.
 
CellAct punches above its weight with Mundipharma deal
August 14, 2017 - Fierce Biotech
German biotech CellAct has brought its cancer drug CAP7.1 through to phase 2 testing with a little over $10 million in financing-and has now claimed the reward of a $250 million partnership with Mundipharma.  The deal  - an example of the virtues that can follow from being a "virtual" biotech-will see Mundipharma's cancer specialist unit EDO take the reins of the program in phase 3, pushing forward with trials of CAP7.1 in biliary tract cancer.

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