Week of April 9, 2018 | Vol. 7, Issue 14
|
|
In This Issue
Downloads
Quick Links
Contact Information
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.
|
|
|
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.
|
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.
|
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.
|
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.
|
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
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.
|
|
PARTNERING AND M&A OPPORTUNITIES
Current Opportunities Available Through Bourne Partners
|
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
|
UPCOMING EVENTS
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.
Sincerely,
The Bourne Partners Team
Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407
|
STAY CONNECTED
|
|
|
|
|
