Week of January 21, 2019 | Vol. 8, Issue 3
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In This Issue
Quick Links
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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Weeks After $74 Billion Acquisition, Celgene Strikes Two Cancer Deals
Ahead of being absorbed by Bristol-Myers Squibb, Celgene forged a strategic collaboration with two companies to develop immuno-oncology treatments and cell therapies.
First, Celgene struck a deal with Boston-based Kyn Therapeutics
o develop novel immuno-oncology therapies. Celgene provided $80 million in an upfront payment,
as well as an equity investment to exclusively license Kyn's Kynase (kynurenine-degrading enzyme) and aryl hydrocarbon receptor (AHR) antagonist programs. The companies will harness Celgene's expertise in oncology and its pipeline of products and combine it with Kyn's own pipeline of products to focus on areas of high unmet need.
Under terms of the agreement, Kyn will be responsible for R&D activities through Phase Ib, at which time Celgene can opt in to lead and fund global development and commercialization of the licensed programs.
AHR and kynurenine are associated with immunosuppression in a range of tumor types through multiple cellular metabolic mechanisms that modulate both innate and adaptive immunity. These attributes make them compelling targets for investigative therapies, in particular in patients who do not fully benefit from current treatments like checkpoint inhibitors, Kyn said in its announcement. If the collaboration is successful, Kyn is eligible for substantial clinical, regulatory and commercial milestone payments.
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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
9 transactions totaling $629 million
Supplies, Equipment & Services
22 transactions totaling $164 million
Healthcare IT & Managed Care
5 transactions totaling $5,953 million
Healthcare Facilities & Distributors
10 transactions totaling $544 million
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Pharma & Biotech
25 private placements totaling $920 million
Supplies, Equipment & Services
15 private placements totaling $95 million
Healthcare IT & Managed Care
8 private placements totaling $8 million
Healthcare Facilities & Distributors
1 private placement
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Pharma & Biotech
13 public offering totaling $2,566 million
Supplies, Equipment & Services
4 public offerings totaling $26 million
Healthcare IT & Managed Care
2 public offering totaling $1 million
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 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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January 18, 2018 - Bio Space
Oxford and Novartis will use anonymous data from about 5 million patients from the United Kingdom and partner organizations from across the globe. They will combine that data with other anonymized data captured from relevant Novartis clinical trials. Then, using statistical machine learning technology from Oxford's Big Data Institute, Oxford and Novartis expect to predict how patients will respond to existing and new medicines.
January 17, 2018 - Bio Space
Supporting its continuing growth, Catalent Pharma Solutions is investing in a second clinical supply factory in Shanghai, China. The 30,000 square-feet facility doubles the contract manufacturer's total clinical storage capacity in the country, and is due to open in early 2019
January 16, 2018 - Fierce Pharma
The company has struck a deal with Medochemie, a Cyprus-based drugmaker with three manufacturing sites in Vietnam. Pfizer will transfer technology that will permit Medochemie to manufacture 11 of Pfizer's products, including four sterile injectables and seven tablets.
January 16, 2019 - Bio Space
Luye Pharma has announced it has entered an agreement with AstraZeneca China, the terms of which grant AstraZeneca China exclusive rights to promote Luye Pharma's Xuezhikang Capsules in mainland China. This is the first time that a multinational pharmaceutical company has gained exclusive authorization in
China to promote an innovative drug independently developed by a Chinese pharmaceutical company.
Walmart opts to leave CVS partnership over pricing dispute
January 15, 2019 -
Reuters
CVS Health Corp said on Tuesday Walmart Inc is leaving its network for commercial and Medicaid prescription drug plans after the two companies failed to agree on pricing. CVS said the dispute would not impact Walmart's presence in its Medicare Part D pharmacy network, which according to Cowen & Co analyst Charles Rhyee was a bright spot as it represented a larger chunk of CVS' scripts.
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