Week of March 4, 2019 | Vol. 8, Issue 9
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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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GE chief Culp sells biopharma business for $21.4B
Shares of General Electric Co surged more than 15 percent on Monday after the industrial conglomerate said it would sell its biopharma business to Danaher Corp for $21.4 billion..
The deal will provide GE with a much-needed cash infusion as the maker of power plants and aircraft engines struggles to pay off billions of dollars of debt and insurance liabilities. The company, once a symbol of American business power and management prowess, has struggled with crisis-era losses linked to its finance arm, forcing it to divest its non-core businesses and return to its industrial roots.While divestitures have given the company funds to rebuild itself, its more than $100 billion debt and stagnating growth have left investors and Wall Street analysts concerned about its prospects. But Culp's appointment in October rekindled hopes of GE's return to profitability, with its shares up 34 percent this year. Culp said on Monday the sale to Danaher, where he was instrumental in revitalizing the company as its CEO, was a pivotal milestone in efforts to turn around the 126-year old conglomerate. "It demonstrates that we are executing on our strategy by taking thoughtful and deliberate action to reduce leverage and strengthen our balance sheet," Culp said in a statement.
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Roche acquires Spark in $4.8B gene therapy play
Roche is acquiring Spark Therapeutics in a multi-billion dollar deal that underscores big pharma's growing appetite for new technologies like gene therapy.
Commercial gene therapy only recently turned from a lofty scientific ambition into a realized market. Spark's Luxturna (voretigene neparvovec) was a key milestone in that transition, having secured Food and Drug Administration approval for an inherited retinal disease in late 2017. The industry now sees many more applications for gene therapy, and is investing heavily in the space. In the past month alone, AbbVie inked a deal with Voyager Therapeutics focused on Parkinson's disease gene therapies while Johnson & Johnson signed a licensing agreement for a gene therapy developer's inherited retinal disease portfolio. There have also been several gene therapy acquisitions. One of the biggest came last April, when Novartis acquired AveXis and its spinal muscular atrophy treatment for $8.7 billion. Roche's latest purchase adds to the list and may spark more deals too, according to Wall Street analysts. Maury Raycroft of Jefferies wrote in a Feb. 25 investor note that the Spark takeout could boost dealmaking prospects for Sangamo Therapeutics, Abeona Therapeutics, Ultragenyx Pharmaceutical, and Intellia Therapeutics, among others.
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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
24 transactions totaling $7,52 million
Supplies, Equipment & Services
17 transactions totaling $21,475 million
Healthcare IT & Managed Care
5 transactions totaling $2 million
Healthcare Facilities & Distributors
12 transactions totaling $199 million
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Pharma & Biotech
28 private placements totaling $986 million
Supplies, Equipment & Services
14 private placements totaling $85 million
Healthcare IT & Managed Care
9 private placements totaling $498 million
Healthcare Facilities & Distributors
1 private placement
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Pharma & Biotech
19 public offering totaling $2,876 million
Supplies, Equipment & Services
7 public offerings totaling $2,909 million
Healthcare IT & Managed Care
1 public offering
Healthcare Facilities & Distributors
2 public offerings totaling $1,601 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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March 1, 2019 -
Fierce Biotech
Gilead's Kite Pharma has
expanded its CAR-T agreement with MaxCyte. The revised deal gives Kite the chance to apply MaxCyte's transfection technology to up to 10 targets.
February 28, 2019 - Bio Space
Wellington Management Company LLP, which owns about an 8 percent stake in BMS, announced Wednesday that it did not support the$74 billion acquisition
announced earlier this year. In a brief statement, Wellington said it believes BMS should be active in business development that involved mergers and acquisitions, but the investment management firm does not believe the Celgene deal "is an attractive path towards accomplishing this goal."
February 27, 2019 -
Fierce Biotech
Sarepta Therapeutics expanded into limb-girdle muscular dystrophy last May, when it ponied up
$60 million to license five gene therapies and snag an option to acquire the company. Now, it's buying
Myonexus and its pipeline outright for $165 million.
February 26, 2019 - Reuters
Brazil's largest pharmacy chain Raia Drogasil SA said on Tuesday it would fully acquire Drogaria Onofre, a rival controlled by CVS Health Corp. Raia Drogasil said in a statement it had reached an agreement with CCI Foreign, S.à r.l., Beauty Holdings and a unit of CVS to buy the chain with 50 stores in Brazil.
Novartis moves forward on CV drug, paying $150M to Ionis, Akcea
February 26, 2019 - BioPharma Dive
Novartis said Monday it will exercise a licensing option on an experimental heart drug, paying $75 million to both Ionis Pharmaceuticals and Akcea Therapeutics as it takes over development and plans a Phase 3 cardiovascular outcomes trial.
Ipsen strikes $1.3B Clementia buyout to boost rare disease unit
February 25, 2019 - Fierce Biotech
As an FDA action date quickly approaches for a gene therapy that Novartis snatched up last year, the biotech that is developing the treatment says it needs to more than double the size of its new manufacturing operations. AveXis now plans to have 400 employees and invest about $115 million in the North Carolina site.
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MARKET REPORTS
Recent Materials Providing Insight Into Healthcare & Related Industries
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February 2019
February 2019
February 2019
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UPCOMING EVENTS
Events Attended or Hosted by Bourne Partners
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March 17-19, 2019 | Boca Raton, FL
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March 18-21, 2019 | New York City, NY
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