Week of June 19, 2017 | Vol. 6, Issue 23
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Amazon to Buy Whole Foods for $13.7 Billion
Whole Foods will continue to operate stores under its brand
Amazon.com Inc. said it would buy
Whole Foods Market
WFM +26.89%Inc. for $13.7 billion as the giant internet retailer makes a deeper
push into the grocery space.
Amazon will pay $42 a share for Whole Foods, valuing the grocer at a 27% premium to its closing price Thursday. The deal is by far the largest in Amazon's history, and it is expected to close in the second half of this year.
Amazon has worked for years to build its Fresh grocery delivery business, but its share of the market is just a sliver. The Seattle-based online retail giant has recently
tested brick-and-mortar grocery concepts
, including two AmazonFresh Pick Up locations in its hometown, as it works to grab a bigger piece of the more than $600 billion edible food consumer spending category.
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Idorsia spins out of J&J-Actelion with $1B and multidrug pipeline
The new company starts life with $1 billion in cash, multiple clinical-phase drugs and a deal with J&J, strengths that prompted traders to drive up its share price by 30% in its first hours on the Swiss stock exchange.
Idorsia has
spun out
of Actelion after Johnson & Johnson wrapped up its $30 billion takeover of the Swiss biotech.
Shares in Idorsia began trading at CHF 10 ($10) a piece but quickly soared higher. The stock settled around the CHF 13 mark a few hours after the market opened. That jump was foreseeable. Talking to Reuters, an anonymous trader
said
the initial CHF 10 "reflects the company's cash and actually is rather cheap."
Allschwil, Switzerland-based Idorsia's $1 billion starting cash position is one of several eye-catching characteristics of the biotech. Unlike almost all newly minted biotechs, Idorsia also has multiple drugs in the clinic, one of which could net it a $230 million fee if J&J opts in.
The J&J agreement covers dual endothelin receptor antagonist ACT-132577, one of four phase 2 assets in Idorsia's pipeline. Actelion posted data from a phase 2 trial of ACT-132577 last month. The readout linked the experimental therapy to statistically significant reductions in mean diastolic and systolic blood pressure.
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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 $433 million
Supplies, Equipment & Services
22 transactions totaling $235 million
Healthcare IT & Managed Care
3 transactions totaling $0
Healthcare Facilities & Distributors
6 transactions totaling $36 million
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Pharma & Biotech
9 private placements totaling $84 million
Supplies, Equipment & Services
17 private placements totaling $174 million
Healthcare IT & Managed Care
8 private placements totaling $85 million
Healthcare Facilities & Distributors
2 private placement totaling $74 million
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Pharma & Biotech
12 public offerings totaling $436 million
Supplies, Equipment & Services
6 public offerings totaling $191 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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Drug that creates a 'real sun-tan' could prevent cancer
June 13, 2017 -
BBC
Scientists have developed a drug that mimics sunlight to make the skin tan, with no damaging UV radiation involved.
The drug tricks the skin into producing the brown form of the pigment melanin in tests on skin samples and mice.
Evidence suggests it will work even on redheads, who normally just burn in the sun.
The team at Massachusetts General Hospital hope their discovery could prevent skin cancer and even slow the appearance of ageing.
Checkmate raises $27M, adds ops veteran as I-O program gathers pace
June 16, 2017 -
Fierce Biotech
A new funding round for Checkmate Pharma will fund additional trials of immuno-oncology drug CMP-001, currently paired with Merck's Keytruda in a phase 1b melanoma trial.
The Cambridge, Massachusetts biotech
says it has raised $27 million in a second-round fundraising that will be used to run additional trials of CMP-001 in melanoma, as well as other indications. And that effort will be helped by newly appointed Chief Operating Officer Karen Brennan, who brings more than 30 years of clinical and development experience to Checkmate after stints at Forum Pharma and Millennium.
June 16, 2017 -
Fierce Pharma
Mylan's EpiPen will soon have another lower-cost competitor to contend with. Adamis Pharmaceuticals, whose epinephrine injection was turned back by the FDA last year before the EpiPen pricing controversy erupted, won an agency nod Thursday.
Dubbed Symjepi, the Adamis single-dose syringe won't be an interchangeable generic, but it will compete head-to-head with the Mylan brand, and analysts see it as a drain on the company's sales-and, potentially, profits.
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UPCOMING EVENTS
An Overview of Events Hosted or Attended by the Bourne Partners Team
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2017 BIO International Convention
June 19-22, 2017 | San Diego, CA
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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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