Week of November 19, 2018 | Vol. 7, Issue 46
In This Issue

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 click on the chart above to download complete transaction tables broken out by industry subsectors.
Veritas Capital, Elliott to buy Athenahealth for $5.7 billion
Private equity firm Veritas Capital and hedge fund Elliott Management are buying Athenahealth Inc (ATHN.O) for about $5.7 billion, the U.S. healthcare software maker said on Monday.

The all-cash deal values Athenahealth at $135 per share, representing a premium of 12.2 percent to the stock's closing price on Friday. Reuters reported on Sunday that Athena health had agreed to a takeover. Athenahealth had been under pressure from Elliott to sell itself since the hedge fund acquired a stake in the company last year. In May Elliott made an unsolicited offer of $160 per share to buy Athenahealth. The Watertown, Massachusetts-based company, whose cloud-based software is used to track revenue from patients, physicians and hospitals, has cut jobs and overhauled its management over the past year as part of a restructuring effort. Former General Electric (GE.N) Chief Executive Officer Jeff Immelt currently serves as its chairman. Once the deal is complete, Athenahealth will merge with Virence Health, the former GE Healthcare unit that Veritas acquired earlier this year, the companies said in a joint statement. A deal fro Athenahealth represents the largest deal to date for Elliott's private equity arm, Evergreen.

C ontinue Reading at Reuters .
AstraZeneca offloads RSV drug to Sobi for $1.5B, its largest divestiture in 5 years
AstraZeneca's goal of doubling its annual revenues to $40 billion by 2023 is only part of CEO Pascal Soriot's pledge to get the company back on a strong growth path.

 He also wants to improve the company's bottom line by cutting costs and driving up cash flow-largely by offloading older medicines so it can focus on more lucrative opportunities. It's no surprise, then, that AZ has just struck its third deal since Oct. 30, handing off the U.S. rights to Synagis, a drug to prevent infections caused by respiratory syncytial virus (RSV), to Sweden's Sobi. AstraZeneca is picking up $1 billion in cash and $500,000 in shares up front, as well as an 8% ownership stake in Sobi. The total value of the deal, including deferred and contingency payments, is $2.3 billion, making it AZ's largest divestiture in the last five years, noted Jefferies, which was the financial adviser to Sobi on the deal. The transaction will allow "AstraZeneca to allocate resources more effectively," Soriot said in a statement. Specifically, it will free up the company to focus on a next-generation, single-dose RSV drug called MEDI8897, which it is developing with Sanofi. Sobi can participate in payments AZ receives from U.S. sales of MEDI8897 under Tuesday's deal. AstraZeneca has been on a tear in the past few weeks when it comes to cash-generating transactions. On Oct. 30, it sold certain rights to Nexium and Vimovo to GrĂ¼nenthal for $922 million. Then it formed a pact with Covis Pharma, scooping up $350 million in a sale of rights to respiratory drugs Alvesco, Omnaris and Zetonna. AZ had previously signed agreements with Recordati, Aspen, Pfizer and Ironwood.


C ontinue Reading at FiercePharma .
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.



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





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



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
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. 

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.
General Electric Co's (GE.N) finance arm GE Capital said it is selling a $1.5 billion portfolio of its healthcare equipment financing business to U.S. regional lender TIAA Bank. GE Capital used to issue financing for cars and aircraft and was once a big chunk of the industrial conglomerate's profits, but the 2008 financial recession raised the unit's funding costs and nearly sank the entire company.

November 15, 2018 - BioPharma Dive
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
 
November 15, 2018 - Bio Space
Boehringer Ingelheim based in Ingelheim, Germany, and Epizyme, headquartered in Cambridge, Mass., signed a global collaboration deal to identify, develop and market cancer therapies. The deal could exceed $300 million. The focus will be on two previously unexplored epigenetic targets, both enzymes in the helicase and histone acetyltransferase (HAT) families.

November 14, 2018 - Reuters
British engineer Smiths Group (SMIN.L) plans to spin off its healthcare business to focus on industrial technology, two months after a 7 billion pound ($9.1 billion) deal to merge it with U.S.-based ICU Medical (ICUI.O) collapsed.

Roivant Sciences Announces $200 Million Investment Round
November 13, 2018 - Bio Space
Roivant Sciences today announced a $200 million equity financing. New investors include NovaQuest Capital Management, RTW Investments, and other large institutional asset managers. These new investors comprise a majority of the round. All existing institutional shareholders in Roivant are also participating. The financing values Roivant at approximately $7 billion.

November 13, 2018 - Fierce Pharma
AbbVie has had success with its new pan-genotypic hepatitis C drug Mavyret, generating blockbuster-level sales at the expense of competitors. Now, the company has inked a deal with the Medicines Patent Pool to boost access to the drug in nearly 100 low- and middle-income countries and territories. 
Lannett Enters Into Agreement With Amneal Pharmaceuticals For Levothyroxine
November 12, 2018 -  Bio Space
Lannett Company, Inc.,  (NYSE: LCI) today announced that it has entered into an agreement with Amneal Pharmaceuticals Inc.  Lannett will receive an upfront payment of $50 million, other terms of the transaction were not disclosed.

November 12, 2018 - Bio Space
Pharma giant Takeda Pharmaceutical is looking to begin 2019 with a bang - closing its $62 billion acquisition of Shire plc by Jan. 8. This morning Takeda announced that it will hold an investor vote next month on the planned acquisition in order to swiftly move and finalize the deal - if the company has the necessary support of its investors.

MARKET REPORTSUpcomingEvents
Recent Materials Providing Insight Into Healthcare & Related Industries

  www.bourne-partners.com    |    careers@bourne-partners.com    |   +1  704.552.8407