Week of October 1, 2018 | Vol. 7, Issue 39
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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 follow the link to the left to download complete transaction tables broken out by industry subsectors.
See below for additional information about industry trading comps and transaction relevant articles from the past week.
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Roche Focuses on T Regulatory Cells in $758 Million Acquisition of Tusk Therapeutics
Swiss-based Roche announced it is buying UK-based Tusk Therapeutics in a deal that could hit $758 million (U.S.)
Under the terms of the acquisition, Roche is paying $81 million upfront with another possible $677 million in various milestone payments. This is another deal in the immuno-oncology area. Tusk focuses on developing therapeutic antibodies to treat cancer. It currently has two lead programs, CD25 and CD38. The focus is on T regulatory cells (Tregs). Jonathan Gardner, writing for
Vantage, says, "The UK group's focus on trendy T regulatory cells (Tregs) in immuno-oncology certainly did not hurt its case, as the biopharma world casts around for ways to magnify the benefit of PD-(L)1 agents like Roche's Tecentriq. The rationale is that by turning off the immunosuppressive effects of Tregs, PD-(L)1 agents will work even better." Both CD25 and CD37 are the targets of the company's two programs, both in Phase I clinical studies. It is believed that Tregs target both CD25 and CD37. CD38 is the target of
Johnson & Johnson's Darzalex, where it inhibits growth of CD38-positive multiple myeloma cells. Tusk hopes to develop its compound in solid tumors. "We are delighted that Roche will further develop this novel antibody and drive the development ahead," said Luc Dochez
, Tusk's chief executive officer, in a statement. "The remaining portfolio of our immune-oncology targets will be further developed by Black Belt Therapeutics
, a newly formed company spun out of Tusk Therapeutics."
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Alexion to Obtain Syntimmune for $400M up Front
Alexion Pharmaceuticals, Inc. and Syntimmune have just today announced that Alexion will be acquiring Syntimmune, a company working to produce antibody therapeutics that focus on the neonatal Fc receptor (FcRn).
Their self-described pipeline-in-a-product, SYNT001, is a humanized monoclonal antibody which was engineered to reduce the interaction of FcRn with Immunoglobulin G (IgG) and IgG immune complexes. As such, SYNT001 has shown excellent potential for the advancement of medical therapies in a range of IgG-mediated diseases. The groundbreaking drug is being appraised in Phase 1b/2a studies involving patients with both warm autoimmune hemolytic anemia (WAIHA) and pemphigus vulgaris (PV) or pemphigus foliaceus (PF). Accelerated IgG reduction has been demonstrated consistently. The current agreement between Alexion and Syntimmune details that Syntimmune will be acquired for an upfront payment of $400 million with the future possibility of supplementary milestone-based payments of up to $800 million, making the total value of the deal up to $1.2 billion.
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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
12 transactions totaling $1,353 million
Supplies, Equipment & Services
24 transactions totaling $1,053 million
Healthcare IT & Managed Care
6 transactions totaling $33 million
Healthcare Facilities & Distributors
10 transactions totaling $66 million
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Pharma & Biotech
25 private placements totaling $491 million
Supplies, Equipment & Services
22 private placements totaling $154 million
Healthcare IT & Managed Care
11 private placements totaling $58 million
Healthcare Facilities & Distributors
3 private placements totaling $8 million
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Pharma & Biotech
19 public offering totaling $937 million
Supplies, Equipment & Services
2 public offerings totaling $105 million
Healthcare IT & Managed Care
2 public offering totaling $25 million
Healthcare Facilities & Distributors
1 public offerings totaling $195 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 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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September 28, 2018 - Bio Space
Aimovig, which was approved in May, is 70 mg self-administered once a month by way of
Amgen's SureClick autoinjector. Ajoy, approved this month, is also an injectable, but only requires injections once every three months. Lilly's Emgality is 120 mg injected once a month.
September 27, 2018 - Reuters
Health insurer Aetna Inc said on Thursday it will sell its standalone Medicare prescription drug plan business to WellCare Health Plans Inc as it seeks U.S. antitrust approval for a planned acquisition by CVS Health Corp. The $69 billion CVS-Aetna deal would be the second large deal this year between insurers and pharmacy benefit managers, a consolidation the companies say will help rein in rising U.S. healthcare costs.
September 27, 2018 - Reuters
Thyssenkrupp unveiled plans on Thursday to spin off its capital goods business into a separately-listed entity, effectively splitting the conglomerate in two. Below are the key facts of the two planned companies, to be called Thyssenkrupp Materials and Thyssenkrupp Industrials:
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