Week of July 10, 2017 | Vol. 6, Issue 26
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Opdivo tops Yervoy in melanoma win analyst says could pad Bristol-Myers' I-O sales by $1B
Bristol-Myers Squibb's battered Opdivo registered a positive surprise Wednesday, topping fellow BMS checkpoint med Yervoy in an adjuvant melanoma trial.
In a phase 3 study evaluating Opdivo against Yervoy in certain postsurgery patients at high risk of recurrence, Opdivo
nailed its primary endpoint at an interim analysis, posting superior recurrence-free survival data. And that's important, considering the majority of patients in that pool see their disease return after surgery, Vicki Goodman, Bristol's melanoma development lead, said in a statement.
The news "comes as a surprise," Leerink Partners analyst Seamus Fernandez wrote in a note to clients, noting that top-line data weren't expected until the study's final readout in the second half of 2018. But investors weren't all that impressed, with shares through the morning staying mostly put.
Fernandez, though, sees reason for optimism, despite the fact that just how large Opdivo's benefit was remains under wraps for now. "
We would expect it to become the standard of care in high-risk patients following surgical resection given its superior safety and tolerability profile relative to Yervoy," he wrote.
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Celgene bags Beigene PD-1 drug for $263M up front
The prolific dealmaker is paying $263 million upfront to get its mitts on the ex-Asia rights to Beigene's PD-1 inhibitor BGB-A317 in solid tumors.
BGB-A317 has yet to enter global pivotal trials and has already given up a big head start to rival checkpoint inhibitors from Bristol-Myers Squibb, Merck and the rest of the PD-1/PD-L1 pack. But, while BGB-A317 may arrive too late to make a dent on the monotherapy market, it could still be a useful tool for Celgene as it puts together combinations of cancer drugs to hit solid tumors.
China's Beigene is currently trialling BGB-A317 in solid tumors in combination with its experimental PARP inhibitor, BGB-290. And in Celgene it now has a partner with seven approved or clinical-phase solid tumor candidates to support further combinations.
Celgene, in keeping with its MO, has put up a significant sum of money and crafted a multifaceted deal to add BGB-A317 to its pipeline. In addition to paying the $263 million upfront, Celgene is committing to close to $1 billion in milestones and making a $150 million investment in Beigene. The price per share paid by Celgene is 35% higher than the stock's 11-day average. Beigene's share price shot up in the days before the Celgene deal was announced publicly.
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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
9 transactions totaling $176 million
Supplies, Equipment & Services
23 transactions totaling $1,351 million
Healthcare IT & Managed Care
3 transactions totaling $14 million
Healthcare Facilities & Distributors
13 transactions totaling $748 million
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Pharma & Biotech
13 private placements totaling $162 million
Supplies, Equipment & Services
14 private placements totaling $182 million
Healthcare IT & Managed Care
4 private placements totaling $34 million
Healthcare Facilities & Distributors
2 private placement totaling $42 million
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Pharma & Biotech
10 public offerings totaling $753 million
Supplies, Equipment & Services
4 public offerings totaling $24 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 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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July 6, 2017 -
Fierce Biotech
Eli Lilly and Purdue University have teamed up to work on a new research collaboration-the biggest in Purdue's history with a biopharma.
The five-year
agreement
, where Lilly will stump up a max of $52 million, will see the two work on a series of projects, from the delivery of injectable pain meds (with fewer injections), to "enabling better patient compliance and overall health."
They are also slated to work on developing predictive models that aim to lower R&D costs and better estimate how candidates will do in the clinic.
July 5, 2017 - Fierce Biotech
GlaxoSmithKline has
inked a drug discovery collaboration with Exscientia, which automates drug design with its artificial intelligence-based platform.
Under the agreement, Dundee, U.K.-based Exscientia will receive research payments from GSK, which could total up to
£33 million ($42.7 million).
The pair will use GSK's pharma know-how and Exscientia's AI-enabled platform to discover small molecules to treat up to 10 targets chosen by GSK, according to a statement.
The disease-related targets will span several therapeutic areas and the pair aim to discover preclinical candidates. Exscientia stands to collect up to $42.7 million in milestone payments if all 10 projects are advanced.
July 5, 2017 -
Fierce Pharma
After failing to win the shareholder support needed to complete a €5.32 billion buyout, Stada is changing key executives. The company announced the resignations of CEO Matthias Wiedenfels and CFO Helmut Kraft following a board meeting on Tuesday and quickly appointed new management.
A former Boehringer Ingelheim exec, Engelbert Coster Tjeenk Willink will serve as interim CEO, Stada
said
on Tuesday. The company tapped Bernhard Düttmann, who has served as CFO at chemicals firm Lanxess and skin care company Beiersdorf, for its top financial post on an interim basis.
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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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