Week of August 7, 2017 | Vol. 6, Issue 30
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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.
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LabCorp to expand oncology offerings with $1.2 billion Chiltern buy
The CRO industry is undergoing a wave of consolidation as pharmaceutical companies strive to cut costs, reduce clinical trial times and expand their research and development presence.
Diagnostics company Laboratory Corp of America Holdings
said on Monday it would buy privately owned contract research organization (CRO) Chiltern International Ltd for nearly $1.2 billion in cash to expand its oncology offerings. Chiltern will become part of LabCorp's Covance unit, which carries out trials for drugmakers.
LabCorp acquired Covance Inc in 2015. In recent years, many of the largest pharma contractors have changed hands, often at lofty valuations. The company said the deal would create leading oncology expertise, leveraging Covance's extensive experience in late-stage studies with Chiltern's early-stage development offerings. J.P. Morgan Securities LLC and Wells Fargo Securities are LabCorp's financial advisers while Jefferies LLC will provide financial advice to Chiltern. The deal is expected to close in the fourth quarter this year.
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Bristol-Myers Squibb in $2.3B I-O biotech biobucks buyout deal
Bristol-Myers Squibb will
pay
$300 million upfront and up to $2 billion in biobucks for IFM Therapeutics and its new immuno-oncology approaches.
This comes just a year after the preclinical upstart raised a $27 million series A, with backing from Atlas Ventures, Abingworth and Novartis' venture arm.
The Cambridge, Massachusetts-based company is currently working on developing a portfolio of first-in-class small molecules that aims to either boost inborn immune responses for treating cancer or dampen certain immune responses that drive many inflammatory diseases. BMS wants the cancer assets now but may take on its other candidates down the line. The $1.01 billion, which will be in addition to the $300 million upfront, comes in the form of milestones for each of the first products from the two programs, making it worth $2.3 billion in total. This includes IFM's preclinical STING (stimulator of interferon genes) and NLRP3 agonist programs, both focused on enhancing the innate immune response for treating cancer. BMS gains full rights to the programs.
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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
8 transactions totaling $22 million
Supplies, Equipment & Services
20 transactions totaling $1,574 million
Healthcare IT & Managed Care
4 transactions totaling $27 million
Healthcare Facilities & Distributors
13 transactions totaling $1,480 million
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Pharma & Biotech
10 private placements totaling $146 million
Supplies, Equipment & Services
10 private placements totaling $47 million
Healthcare IT & Managed Care
3 private placements totaling $3 million
Healthcare Facilities & Distributors
4 private placements totaling $11 million
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Pharma & Biotech
6 public offerings totaling $889 million
Supplies, Equipment & Services
4 public offerings totaling $108 million
Healthcare IT & Managed Care
0 public offerings
Healthcare Facilities & Distributors
1 public offering totaling $1 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 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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August 3, 2017 -
Fierce Pharma
Drugs to treat attention deficit hyperactivity disorder (ADHD) have been a mainstay for Ireland's Shire, so it's no surprise that the company's second-quarter earnings report was overshadowed by the revelation that the franchise may be on the block. Even though the company somewhat buried details of the news towards the end of its earnings release, the potential spinout or sale of Shire's neuroscience assets dominated Wall Street's attention.
August 3, 2017 -
Fierce Biotech
Boston area startup Cardurion Pharma has only been in operation a few months but has already picked up a big pharma partner to help it hit the ground running.
Japan's Takeda is jumpstarting the cardiovascular disease specialist by
providing
a 12-person research team at its R&D site in Shonan, Japan, along with lab space, development resources and licenses to a portfolio of preclinical drug candidates.
Wal-Mart, Walgreens, CVS turn up the heat on generic drugmaker deals
The largest U.S. retail pharmacies, including Wal-Mart Stores Inc and Walgreens Boots Alliance Inc, are wielding more leverage when buying generic drugs, accelerating a decline in prices likely to affect drug companies for some time, industry experts said on Thursday.
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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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