Week of November 5, 2018 | Vol. 7, Issue 44
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In This Issue
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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 click on the chart above to download complete transaction tables broken out by industry subsectors.
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Illumina to buy rival Pacific Biosciences in $1.2 billion deal
Gene sequencing company Illumina Inc (ILMN.O) said here on Thursday it plans to buy smaller rival Pacific Biosciences of California Inc (PACB.O) in an all-cash deal valued at $1.2 billion, expanding its capabilities as the market grows.
Illumina's offer of $8 per Pacific share represents a premium of about 77 percent to Pacific's Thursday close. Illumina is a major player in the nascent gene sequencing space and last year unveiled its NovaSeq sequencing platform, which is designed to deliver faster and cheaper gene sequencing over existing models. Gene sequencing is a method to analyze the genome, and can among other uses, help identify inherited disorders and markers of disease progression. Evercore ISI analysts said the deal is a positive as it allows Illumina to deploy capital in a constructive manner as it will acquire a leader in long-read sequencing technology, thus complementing the company's current portfolio. "PacBio's unmatched accuracy mirrors that of Illumina's in short-read sequencing," said Francis deSouza, President and Chief Executive Officer of Illumina. "Combining the two technologies positions us to reach more applications and accelerate the pace of genomic discovery."
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Sanofi and Denali Partner on Small Molecule Development in Potential $1 Billion Deal
Shares of Denali Therapeutics are up more than 10 percent in premarket trading after the company announced
Shares of Denali Therapeutics are up more than 10 percent in premarket trading after the company announced it has inked a collaborative deal with French biopharma company Sanofi to develop potential treatments for neurological and systemic inflammatory diseases that could be worth more than $1 billion. Bay Area-based Denali and Sanofi will focus on the development of two molecules, DNL747 and DNL758, both of which target a signaling protein known as the receptor-interacting serine/threonine-protein kinase 1 (RIPK1) in the TNF receptor pathway. RIPK1 regulates inflammation and cell death in tissues throughout the body. The collaboration also includes additional pre-clinical RIPK1 inhibitor molecules, the companies said. Sanofi and Denali will take each of the proteins and study their efficacy on multiple disease targets. The two companies will take DNL747 and study it in multiple sclerosis, Alzheimer's disease, and amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig's disease. DNL74 is a brain-penetrant small molecule. It is being evaluated in Phase I trials. The companies said Phase Ib trials for Alzheimer's disease and ALS are expected to begin in the near-term future. Those trials are expected to inform subsequent clinical development, the companies said. Denali, which has a significant focus on Alzheimer's disease, will lead the Phase II clinical trials in that area, while Sanofi will lead the Phase II clinical trials in MS and ALS, as well as future Phase III trials in all neurological indications.
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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
11 transactions totaling $1,218 million
Supplies, Equipment & Services
16 transactions totaling $1,560 million
Healthcare IT & Managed Care
9 transactions totaling $46 million
Healthcare Facilities & Distributors
16 transactions totaling $50 million
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Pharma & Biotech
22 private placements totaling $350 million
Supplies, Equipment & Services
20 private placements totaling $146 million
Healthcare IT & Managed Care
12 private placements totaling $38 million
Healthcare Facilities & Distributors
2 private placements
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Pharma & Biotech
6 public offering totaling $176 million
Supplies, Equipment & Services
8 public offerings totaling $54 million
Healthcare IT & Managed Care
0 public offerings
Healthcare Facilities & Distributors
1 public offering totaling $84 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.
For a complete trading comp analysis (including the individual equities that comprise the sub sectors), click on the table to the right.
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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November 2, 2018 - BioSpace
Less than a week ago, Roche
snagged regulatory approval for Xofluza,
a single-dose oral medication, the first new flu treatment approved in 20 years. Now, new research indicates that llamas, the doe-eyed South American pack animal, may hold the key to flu vaccines. The Los Angeles Times reports that a team from the Scripps Institute in Southern California has been able to take antibodies made by llamas and used them as the basis for a flu vaccine.
November 2, 2018 - BioPharma Dive
While they still are valuable commodities, the price has fallen dramatically as supply has increased, with $80 million the apparent going rate if this and a recent deal between Ultragenyx and Kyowa Hakko Kirin deal are anything to go by.
October 31, 2018 - Fierce Biotech
Gilead is paying $50 million upfront to enter into an immuno-oncology collaboration with Tango Therapeutics. The agreement gives Gilead the option to pick up the worldwide rights to five targets discovered and validated by Tango.
Veritas Capital, Elliott close to deal to buy Athenahealth
October 31, 2018 -
Reuters
Private equity firms Veritas Capital has teamed up with hedge fund Elliot Management Corp in a bid to buy U.S. healthcare software maker Athenahealth Inc. (ATHN.O), and is close to sealing an agreement, a person familiar with the matter said.
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