Week of April 9, 2018 | Vol. 7, Issue 14
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Managing Director
Business Development

Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory

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.
GE To Sell Part Of Health-Care Division To Veritas Capital For $1.05 Billion
New private equity owner to transition the value-based care division to a stand-alone company

General Electric Co.  has reached a deal to sell part of its health-care information-technology business to private-equity firm Veritas Capital for $1.05 billion in cash, the latest move from the conglomerate to streamline its operations. Veritas said Monday that an affiliate entered into an agreement to buy GE Healthcare's value-based care division, comprising of Enterprise Financial Management, Ambulatory Care Management and Workforce Management, formerly API Healthcare. Veritas said it would work alongside GE management to transition the business into a stand-alone company. The transaction is expected to close during the third quarter. "Our team has significant knowledge and expertise in the health-care IT space, and by operating as a stand-alone business under Veritas' ownership, we now have the opportunity to further revitalize our product portfolio and pursue complementary acquisitions," said Jon Zimmerman, vice president and general manager of value-based care solutions at GE Healthcare, in prepared remarks.

C ontinue Reading at The Wall Street Journal .
Boehringer Ingelheim And OSE Immuno-therapeutics Ink $1.4B Deal
Boehringer Ingelheim and OSE Immunotherapeutics signed a collaboration and license deal to jointly develop OSE-172 for myeloid cancers

Under the terms of the agreement, Boehringer will pay OSE Immunotherapeutics 15 million euros upfront, or about $18.38 million (U.S.). There are potential short-term milestones of up to $18.38 million upon the start of a Phase I clinical trial. Additional development, commercialization and sales milestones could reach more than 1.1 billion euros, or $1.35 billion (U.S.). OSE is also eligible for royalties on worldwide net sales.  OSE-172 is a checkpoint inhibitor. It is a SIRP-alpha antagonist that targets myeloid lineage cells. SIRP-alpha is expressed by myeloid lineage cells like Dendritic Cells (DCs), tumor-associated macrophages (TAMs) and Myeloid-Derived Suppressor Cells (MDSCs). OSE-172 appears to prevent the activity of SIRP-alpha, which can improve the body's immune response.

C ontinue Reading at BioSpace .

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
 18 transactions totaling $234 million 
 Supplies, Equipment & Services
 27 transactions totaling $1,083 million
 Healthcare IT & Managed Care
 9 transactions totaling $1,059 million
 Healthcare Facilities & Distributors
 13 transactions totaling $6 million

Pharma & Biotech
21 private placements totaling $376 million
Supplies, Equipment & Services
11 private placements totaling $85 million
Healthcare IT & Managed Care
9 private placements totaling $17 million
Healthcare Facilities & Distributors
2 private placements totaling $11 million

 Pharma & Biotech
 16 public offerings totaling $848 million
 Supplies, Equipment & Services
 6 public offerings totaling $426 million
 Healthcare IT & Managed Care
 0 public offerings 
 Healthcare Facilities & Distributors
 0 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.
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.
April 6, 2018 -  BioSpace
A company focused on aging-related ailments is looking to infuse new life into its coffers through an initial public offering. Bay Area-based Unity  Biotechnology is seeking to raise$85 million in the IPO as it takes its lead candidate into the clinic later this year. Fresh off the heels of a $55 million Series C financing round in March Unity filed an Investigational New Drug Application with the U.S. Food and Drug Administration UBX0101, a potent senolytic small molecule inhibitor of the MDM2/p53 protein interaction. Unity will determine if its lead product is a good candidate to treat musculoskeletal disease with an initial focus on osteoarthritis.

Roche Acquires Inception 5 MS Program, Versant Forms New Company
April 4, 2018 -  BioSpace
Building on a four-year-old relationship Roche struck a deal to acquire a regenerative therapy program for multiple sclerosis from Inception Services a drug discovery engine co-founded with Versant Ventures in 2011. Through the transaction, Roche gained the Inception 5 program. The deal   builds on a nearly four-year-old alliance between inception and Roche to discover and develop small molecules that promote remyelination of nerve fibers damaged during the progression of multiple sclerosis. 

Eli Lilly Plunks Down $63M Upfront in Deal With Startup Sigilon
April 4, 2018 -  BioSpace
Less than one year after it launched  Cambridge, Mass.-based startup Sigilon Therapeutics struck a collaboration deal with Eli Lilly to develop encapsulated cell therapies for the potential treatment of type 1 diabetes. This morning Sigilon said Eli Lilly will hand over an upfront payment of $63 million to harness its Afibromer technology product platform to develop the encapsulated cell therapies that can be implanted within a patient. In addition to the upfront payment Lilly will also make an undisclosed equity investment into Sigilon, the company announced. If the collaboration hits certain developmental and commercial milestones Sigilon could stand to receive up to $410 million, according to terms of the deal that were made public.

Allergan toys with $5B women's health sale to boost bottom-feeding shares
April 3, 2018 -  Fierce Pharma
How times have changed. Just five short months after Allergan's CEO assured investors that the company wouldn't break up, it's reportedly weighing options for its women's health unit.  The Dublin drugmaker has met with advisers about a potential sale, sources told Bloomberg. And if Allergan does sell the business, which would likely draw interest from private equity firms, it could bring in more than $5 billion.
Genomic analysis uncovers prevalence of RNA splicing mutations in 33 tumor types
April 3, 2018 - Fierce Biotech
Eisai spinoff H3 Biomedicine has published an analysis of data from The Cancer Genome Atlas (TCGA) showing that genetic mutations in RNA splicing factors are much more common and appear in more cancers than previously thought. The findings open up new indications for H3, which has a clinical-stage candidate for blood cancers and highlights RNA splicing factors as a target for others developing cancer treatments. 

April 2, 2018 -  Fierce Biotech
People who suffer from the inherited disease sickle cell disease have defects in their hemoglobin, the blood molecule that transports vital oxygen throughout the body. But a small percentage of patients with the disease have beneficial gene mutations that lessen their symptoms. The mutations switch on a gene that produces fetal hemoglobin-a type of the blood molecule that the body normally stops producing in infancy. The lifelong production of fetal hemoglobin helps shield those sickle cell patients from the worst effects of the disease.
Current Opportunities Available Through Bourne Partners
Project Longhorn 
Sell-side M&A
Southeastern US  |  CDMO  |  Approximately $85mm Revenue  |   Approximately $8mm EBITDA

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

Project Limestone
Asset Divestiture
Southeastern US  |  ANDAs and Manufacturing Equipment  |  ANDA Revenue disclosed with NDA
An Overview of Events Hosted or Attended by the Bourne Partners Team

April 30 - May 6, 2018  | Quail Hollow Club Charlotte, NC
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. 


The Bourne Partners Team

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