Week of May 28, 2018 | Vol. 7, Issue 21
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Managing Director
Business Development

 
Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory
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.
Bourne Partners, The Carlyle Group and Industry Veterans Launch Millicent Pharma with Femring Acquisition
Millicent Pharma seeks to build a global end-to-end pharmaceutical company through acquisition and the development of acquired pharmaceutical products

The Carlyle Group ("Carlyle", NASDAQ: CG), a global alternative asset manager, and Bourne Partners ("Bourne"), a financial services firm focused in healthcare, along with pharma veterans Dr. John King, Roger Boissonneault and Geoffrey Elliot, have jointly launched Millicent Pharma.  Femring, a vaginal ring treatment for menopausal women, was acquired from Allergan (NYSE: AGN) and serves as the first acquisition by Millicent Pharma. Founder and CEO of Bourne Partners, Banks Bourne commented, "When we formed our Phoenix partnership with Carlyle we knew we would be able to source a compelling team and other partnerships. Our 20+ year relationship with John and Roger represented an outstanding opportunity for Phoenix. We couldn't think of a better team to fulfill Phoenix's mission and strategy."

C ontinue Reading at Bourne Partners Website .
Tanner Pharma Group Signs a Distribution Agreement for Partner Therapeutics' Product, Leukine ®
The agreement names Tanner Pharma as a distributor of the product in areas outside of the United States and Canada where the product is not yet registered
 
Tanner Pharma Group, a global provider of integrated specialty access solutions, has announced the signing of a distribution agreement with Partner Therapeutics, Inc.  (PTx), an integrated biopharmaceutical company. The agreement names Tanner Pharma Group as a distributor of Leukine┬« (sargramostim) in areas outside of the United States and Canada where the product is not yet registered. Leukine┬« (sargramostim) is used to help increase the number and function of white blood cells after bone marrow transplantation. The ex-US-and-Canadian distribution will be managed by TannerGAP, Inc. ("TannerGAP"), a wholly owned subsidiary of Tanner Pharma Group. TannerGAP offers turnkey global access solutions for the distribution of products from markets of supply to markets of demand. 

C ontinue Reading at Business Wire .

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.



 Pharma & Biotech
 11 transactions totaling $644 million 
 Supplies, Equipment & Services
 19 transactions totaling $15 million
 Healthcare IT & Managed Care
 3 transactions
 Healthcare Facilities & Distributors
 12 transactions totaling $792 million





Pharma & Biotech
28 private placements totaling $1,051 million
Supplies, Equipment & Services
15 private placements totaling $552 million
Healthcare IT & Managed Care
10 private placements totaling $66 million
Healthcare Facilities & Distributors
3 private placements totaling $100 million



 Pharma & Biotech
 24 public offerings totaling $1,760 million
 Supplies, Equipment & Services
 10 public offerings totaling $265 million
 Healthcare IT & Managed Care
 0 public offerings
 Healthcare Facilities & Distributors
 2 public offerings


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.
RECENT INDUSTRY HEADLINESRecentIndustryHeadlines
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.
Targeted by the Justice Department in an industrywide copay assistance investigation, Pfizer has now agreed to a $23.85 million settlement with the feds. The deal will resolve allegations that its contributions to an assistance fund were kickbacks.  The copay charity probe has made its way to some of biopharma's biggest names, including Johnson & Johnson, Celgene and Biogen. In Pfizer's case, authorities allege the company used charitable contributions to boost its own profits. 
May 24, 2018 -  Fierce Biotech
Zhi Hong, an 11-year veteran of GlaxoSmithKline, is striking out on his own with a startup geared to improve public health in China. Brii Biosciences' mission is to overcome the challenges that have prevented the spread of innovative medicines throughout China. It starts its journey with $260 million in committed capital and a trio of partnerships. 

May 22, 2018 -  Fierce Biotech
A team of scientists has discovered  that an immune mechanism that clears bacterial infections may also play a role in causing Parkinson's disease. The findings clarify the role of the protein LRRK2 in tuberculosis, suggesting that it behaves similarly in Parkinson's. This new insight could pave the way for improved treatments for both diseases. Mutations in the LRRK2 gene have been fingered in a range of diseases, including Crohn's, ulcerative colitis and leprosy, in addition to tuberculosis (TB) and Parkinson's. And while an LRRK2 mutation is common in Parkinson's patients and LRRK2 blockers are showing promise against it, just how the mutation causes disease is poorly understood. 
May 22, 2018 -  Fierce Biotech
Celgene is paying  $65 million upfront to secure an option on cancer drugs discovered by Evotec. The strategic partnership tasks Evotec with applying its R&D toolkit to the discovery of solid tumor drugs that Celgene will then pick up and advance. Evotec, a German drug discovery shop, has built up a phenotypic screening platform, compound libraries and target deconvolution capabilities to support its biopharma customers. The assets and other aspects of Evotec's offering have established it as a go-to partner for companies looking for help with drug discovery, while also enabling it to gain a stake in a slew of pipeline prospects.

May 22, 2018 -  Fierce Biotech
A project that aims to reinvigorate the search for new drugs to treat antimicrobial-resistant (AMR) infections has just picked up two more deep-pocketed backers.  The CARB-X project-which announced the new funding  at the World Health Assembly meeting in Geneva this week-was set up two years ago as a public-private partnership to provide funding for new projects that address the global rise of antibiotic-resistant bacteria , particularly in low- and middle-income countries.

May 22, 2018 -  The Wall Street Journal
U.S. private-equity firm TPG is in talks with investors in Abraaj Group's $1 billion health-care fund about taking over management of the fund's hospitals and clinics in developing countries, according to people familiar with the matter.  Talks between investors in the fund, including the Bill & Melinda Gates Foundation, and executives at TPG are at an early stage and an agreement hasn't been reached, the people said. TPG would likely manage the health-care assets through its Rise fund, the people said. The $2 billion fund aims to make so-called impact investments capable of earning profits and providing measurable improvements to the quality of life of people on low incomes. TPG manages more than $82 billion, according to its website.

May 21, 2018 -  Reuters
Australian hospital group Healthscope Ltd  rejected two takeover approaches on Tuesday and said it will instead explore selling its properties, in what analysts called a risky move that could invite a more favorable takeover bid. The Melbourne-based company also lowered its full-year earnings estimates and said it will sell its Asian pathology business after receiving a number of approaches.
PARTNERING AND M&A OPPORTUNITIESUpcomingEvents
Current Opportunities Available Through Bourne Partners
Project Limestone
Asset Divestiture
Southeastern US | ANDAs | ANDA Revenue disclosed with NDA

Project Ocean 
Sell-side M&A
Northeastern US | CDMO | Approximately $6mm Revenue | EBITDA disclosed with NDA

Project Barracuda
Asset Divestiture
Midwestern US | Consumer Health/OTC | Approximately $31.5mm Revenue | Approximately $12mm EBITDA
MARKET REPORTSUpcomingEvents
Recent Reports Providing Insight Into Healthcare & Related Industries
UPCOMING EVENTSUpcomingEvents
An Overview of Events Hosted or Attended by the Bourne Partners Team
June 4 - 7, 2018  | Boston Convention Center |  Boston, MA
As an international, healthcare-focused merchant bank and financial advisory firm, we provide world-class services and capital to middle-market healthcare companies around the globe.  We aim to keep our clients well-informed of healthcare news and events.  With this additional insight in mind, together, we can recognize trends and opportunities that benefit our clients.  We hope that you will reach out to Bourne Partners to help execute your healthcare operational and transactional needs.  To learn more about our firm, visit our website or utilize the links below to engage with us on social media. 

Sincerely,

The Bourne Partners Team

Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407