Week of April 16, 2018 | Vol. 7, Issue 15
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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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Novartis Bets Big On Gene Therapy With $8.7 Billion AveXis Deal
The acquisition reflects a surge of interest in biotech deal-making as large pharmaceutical companies seek promising new assets to boost their pipelines.
The $218-per-share cash deal announced on Monday represents a 72 percent premium to AveXis's 30-day volume-weighted average stock price. The transaction is seen closing in mid-2018.
Novartis Chief Executive Vas Narasimhan, who took over on Feb. 1, is flush with cash, having just agreed to sell his company's stake in a consumer healthcare joint venture to GlaxoSmithKline for $13 billion. Narasimhan is now counting on AveXis's main drug, AVXS-101 for deadly spinal muscular atrophy (SMA), as well as the Illinois-based company's gene therapy expertise and manufacturing capabilities, to bolster Novartis's neuroscience business, a focus for the Swiss company. This is Novartis's second notable gene therapy deal this year after it agreed to pay $105 million upfront and up to $65 million in milestone payments for rights to Spark's blindness treatment Luxturna outside the United States.
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Alexion Inks $855M Wilson Therapeutics
Takeover
The takeover will further Alexion's attempt to rebuild its pipeline by giving it control of WTX101, a phase three treatment for Wilson disease.
Alexion has struck
an $855 million (€690 million) all-cash deal to acquire Wilson Therapeutics. Rare disease specialist Alexion spent last year shedding pipeline programs, partnerships and staff in preparation for an expected downturn in sales of Soliris. That done, CEO Ludwig Hantson is making good on his promise to rebuild Alexion's pipeline and position the company for long-term growth, starting with the acquisition of Wilson. "The acquisition of Wilson Therapeutics is a strong strategic fit for Alexion given the overlap with our current clinical and commercial focus on metabolic and neurologic disorders, and is an important first step in rebuilding our clinical pipeline," Hantson said in a statement. Alexion initiated the pipeline rebuild by persuading Wilson's board and shareholders that control two-thirds of the company to accept a SEK 232-a-share offer. The bid amounts to a 70% premium over Wilson's closing price yesterday. In the past year, the stock has traded for as little as SEK 54.
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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
14 transactions totaling $9,555 million
Supplies, Equipment & Services
20 transactions totaling $1,530 million
Healthcare IT & Managed Care
5 transactions totaling $9 million
Healthcare Facilities & Distributors
11 transactions totaling $121 million
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Pharma & Biotech
26 private placements totaling $405 million
Supplies, Equipment & Services
8 private placements totaling $39 million
Healthcare IT & Managed Care
7 private placements totaling $146 million
Healthcare Facilities & Distributors
1 private placement
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Pharma & Biotech
15 public offerings totaling $307 million
Supplies, Equipment & Services
8 public offerings totaling $145 million
Healthcare IT & Managed Care
0 public offerings
Healthcare Facilities & Distributors
0 public offerings
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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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April 13, 2018 -
Fierce Pharma
Pfizer may have run into snags trying to sell its consumer health business, but Merck KGaA is in advanced discussions with a player over its own for-sale unit. And that player is Mylan, reports revealed.
The two companies are negotiating a price between $4.3 billion and $4.9 billion, Reuters said, although there's no certainty they'll lock down a deal. The German drugmaker has also reportedly chit-chatted with private equity groups about a sale, according to the news service.
April 12, 2018 -
Fierce Biotech
GlaxoSmithKline is bidding adieu to its stable of gene therapies-it is transferring the assets to Orchard Therapeutics for a 19.9% stake in Orchard and an undisclosed amount in potential milestones and royalties.
The portfolio includes the EMA-approved Strimvelis, which treats ADA-SCID, also known as "bubble boy syndrome," a rare genetic disorder that causes immunodeficiency. Orchard will also pick up late-stage candidates for metachromatic leukodystrophy (MLD) and Wiskott Aldrich syndrome (WAS), and one clinical program for beta thalassemia. It will gain the rights to exclusively license three additional preclinical programmes from Telethon/Ospedale San Raffaele for mucopolysaccharidosis type 1 (MPS1 or Hurler syndrome), chronic granulomatous disease (CGD) and globoid cell leukodystrophy (GLD).
NEA Backs Startup's Software to Assess Drug Performance
April 11, 2018 -
The Wall Street Journal
Venture capitalists increasingly are backing startups that blend computer science and biology in a bid to accelerate drug discovery and the development of novel therapies.
Aetion Inc., whose software analyzes how drugs are performing in the real world, comes at the industry from a different angle. Founded in 2013 by Harvard Medical School professors, Aetion allows drug companies and insurers to see how drugs are performing based on real-world evidence beyond a purely lab setting, which could ultimately lead to faster decision-making or reimbursement approval.
Pfizer Joins Trinetx Global Health Research Network To Accelerate Drug Development
April 10, 2018 - Pharm Pro
Pfizer Inc. has joined the TriNetX global health research network. As a member, Pfizer will have access to clinical data from TriNetX's network of healthcare organizations to support clinical study and protocol design, site identification, and patient recruitment for clinical trials across a range of therapeutic areas and development stages.
TriNetX is a global health research network that connects healthcare organizations, biopharmaceutical companies, and contract research organizations (CROs) to collaborate, enhance trial design, accelerate patient recruitment, conduct in-depth research, and help bring new therapies to market faster.
April 10, 2018 -
Reuters
India's Manipal Hospitals Enterprises Private Ltd on Tuesday raised its offer price to buy Fortis Healthcare Ltd's
hospital business by 21 percent, in an effort to douse any opposition from Fortis minority shareholders. The new offer values Fortis' hospital business at 60.61 billion rupees ($933.2 million), or 116 rupees per share, Manipal Hospitals said in a statement.
April 9, 2018 -
Fierce Biotech
More than two years after Genentech passed over its option to acquire Constellation Pharmaceuticals, the immuno-oncology company raised $100 million that will bankroll a cancer epigenetics candidate through clinical trials, as well as advance several pipeline prospects.
Its work is based on epigenetics, the changes in gene function that don't involve changes in the actual DNA. For example, DNA methylation-the binding of methyl groups on top of DNA-and histone modification both affect gene expression. By regulating the proteins and enzymes involved in such modifications, Constellation is looking to "tune up" or "tune down" genes that may be responsible for certain disease states, said CEO Jigar Raythatha in an interview.
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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 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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