Week of January 7, 2018 | Vol. 8, Issue 1
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In This Issue
Quick Links
Contact Information
Managing Director
Business Development
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 click on the chart above to download complete transaction tables broken out by industry subsectors.
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Cambrex Completes Acquisition of Avista Pharma Solutions
Cambrex Corporation (NYSE: CBM), a leading manufacturer of small molecule innovator and generic Active Pharmaceutical Ingredients (APIs), and finished dosage forms, today announced that it has completed the acquisition of Avista Pharma Solutions ("Avista"), a contract development, manufacturing, and testing organization, from Ampersand Capital Partners. The transaction, announced on November 20, 2018, strengthens Cambrex's position as the leading, fully integrated small molecule contract development and manufacturing organization (CDMO) across the entire drug lifecycle. Avista's four sites in Durham, NC, Longmont, CO, Agawam, MA and Edinburgh, Scotland, UK will be integrated into Cambrex's global network, as well as the company's service offerings ranging from API and drug product development and cGMP manufacturing to stand-alone analytical, microbiology testing and solid state sciences.
Bourne Partners served as the exclusive financial advisor to Avista.
C
ontinue Reading at Cambrex
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Bristol-Myers Squibb to buy Celgene in $74 billion deal
Drugmaker Bristol-Myers Squibb announced Thursday a $74 billion deal to buy Celgene, in one of the biggest mergers in pharmaceutical industry history.
The deal, which still needs the approval of shareholders and regulators, will be paid with a combination of stock and cash. Bristol-Myers is the result of a 1989 merger of two companies that traced their roots back to the 19th century, and is the eighth largest US drugmaker, with annual revenue of $20.8 billion in 2017. Celgene is the ninth largest with revenue of $13 billion.
The combined company could become the fourth largest pharmaceutical firm in the United States. Together they have nine different drugs - six from Bristol-Myers and three from Celgene - with global sales of more than $1 billion each, led by $8.2 billion in sales for Revlimid, the Celgene drug used to treat multiple myeloma, a cancer that affects bone marrow and white blood cells.
The companies also said they have six other drugs under development which could debut over the next 12 to 24 months, representing more than $15 billion in potential annual revenue. If three of its drugs receive FDA approval, Celgene shareholders will get an additional $9 for every current share of Celgene stock they held at the time of the merger, an unusual aspect to how the deal was structured.
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ontinue Reading at
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An Overview of Transactions Within Market Subsegments
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. Total transaction values are provided in USD millions.
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Pharma & Biotech
10 transactions totaling $99,597 million
Supplies, Equipment & Services
13 transactions totaling $2,493 million
Healthcare IT & Managed Care
4 transactions
Healthcare Facilities & Distributors
12 transactions totaling $1 million
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Pharma & Biotech
17 private placements totaling $348 million
Supplies, Equipment & Services
10 private placements totaling $1,127 million
Healthcare IT & Managed Care
3 private placements totaling $1 million
Healthcare Facilities & Distributors
2 private placements totaling $11 million
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Pharma & Biotech
8 public offering totaling $586 million
Supplies, Equipment & Services
2 public offerings totaling $75 million
Healthcare IT & Managed Care
0 public offerings
Healthcare Facilities & Distributors
4 public offering totaling $16 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 sub sectors.
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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January 4, 2018 - Bio Space
The JP Morgan Healthcare Conference, being held from January 7 through 10 at the Westin St. Francis Hotel in San Francisco, is one of the premier, possible the premier, conferences for the biopharmaceutical industry. Every year biotech, pharmaceutical and medical device company representatives and executives from around the world gather together with members of the investment community to network, cut deals, and provide updates on their pipelines.
Verily pockets $1B with eyes on partnerships, M&A
January 4, 2018 - Fierce Biotech
Six weeks after canning its Novartis-partnered, glucose-sensing contact lens project, Verily is raising a $1 billion round that will power new partnerships, "global business development opportunities" and potential acquisitions.
January 3, 2019 - Reuters
Record financing for mergers and acquisitions as well as a push to lock in borrowing costs before interest rates headed higher drove US syndicated loan issuance to an all-time high of $2.6 trillion in 2018, surpassing by 6 percent the prior record set a year earlier.
January 3, 2019 - Fierce Biotech
Veracyte and Johnson & Johnson have inked a deal worth up to $20 million to develop and commercialize diagnostics tests to screen for lung cancer at its earliest stages. Veracyte will pick up a $5 million upfront fee and could reap as much as $15 million in milestone payments.
Sanofi ends heart drug collaboration with MyoKardia
January 2, 2019 -
BioPharma Dive
After four years of working together, MyoKardia will begin 2019 without its long-time pharma partner Sanofi, which said it would not extend a licensing and collaboration deal and would kick back ex-U.S. rights on three heart failure drugs to the biotech.
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