Week of October 22, 2018 | Vol. 7, Issue 42
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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 click on the chart above to download complete transaction tables broken out by industry subsectors.
Novartis inks $2.1B Endocyte buyout, furthering radiotherapy push
Novartis has struck a $2.1 billion (€1.8 billion) deal to acquire Endocyte.

The deal caps off a whirlwind year for Endocyte, which licensed the cancer drug that caught Novartis' eye for $12 million just 12 months ago. Endocyte was in the doldrums when it pinned its hopes of recovery from previous clinical setbacks on radioligand therapeutic 177Lu-PSMA-617. The radioconjugated PSMA antagonist had just shown promise in an open-label, single-arm prostate cancer trial, but its owner, ABX, was willing to let it go for $12 million upfront. That has proven to be a remarkably good deal. Novartis, fresh from paying $3.9 billion for Advanced Accelerator Applications, identified Endocyte and 177Lu-PSMA-617 as the next pieces of its push into the radioligand therapeutic market. And, with Endocyte's stock having risen over the past year, it is set to pay $2.1 billion to get the deal done. The takeover values Endocyte at $24 a share. At the company's lowest ebb in the weeks before the ABX deal, Endocyte's stock traded for as little as $1.17 a share. The ABX deal turned Endocyte from a flailing biotech into a rising company with a leading clinical-phase radioligand therapeutic, triggering a jump in its stock price that continued as it posted more phase 2 data and moved into phase 3.

C ontinue Reading at Fierce Biotech .
SQZ Cozies up to Roche With Expansion Agreement of up to $1 Billion
SQZ Biotechnologies could be on the receiving end of up to $1 billion following its signing of an expansion agreement with pharma giant Roche.

Roche and privately-held cell therapy company SQZ will jointly develop oncology products based on antigen presenting cells (APCs) that are created by the SQZ platform. The two companies initially formed a collaboration in 2015 that was valued at about $500 million. The companies aimed to use SQZ technology to introduce proteins into a patients' B-cells in hopes of activating T-cells to fight off cancer. The SQZ technology uses antigen-presenting cells, which are responsible for activating killer T cell responses. In animal testing, SQZ said when the APCs were administered their major histocompatibility complexes presented antigens induce powerful, specific CD8 T cell responses against the antigen of interest. SQZ said those CD8 T cell responses "subsequently drive a strong killing effect against any cell expressing the target antigen." The bulk of SQZ's preclinical research has been with HPV positive tumors, particularly those in cervical and head and neck cancers, according to the company's website.

C ontinue Reading at BioSpace .
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
18 transactions totaling $2,696 million
Supplies, Equipment & Services
22 transactions totaling $374 million
Healthcare IT & Managed Care
9 transactions totaling $12 million
Healthcare Facilities & Distributors
9 transactions 

Pharma & Biotech
21 private placements totaling $295 million
Supplies, Equipment & Services
21 private placements totaling $182 million
Healthcare IT & Managed Care
7 private placements totaling $347 million
Healthcare Facilities & Distributors
5 private placements totaling $14 million

Pharma & Biotech
18 public offering totaling $777 million
Supplies, Equipment & Services
3 public offerings totaling $1 million
Healthcare IT & Managed Care
1 public offering totaling $150 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.
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.
October 19, 2018 - Fierce Biotech
The Parker Institute for Cancer Immunotherapy has teamed up with Xyphos Biosciences to advance next-generation CAR-T therapies. Like others in the field, the Parker Institute and Xyphos are working to improve on the blunt force of the initial CAR-Ts by creating more controllable therapies free from the safety issues and efficacy limitations of their predecessors.

October 18, 2018 - Fierce Biotech
After having invested in Morphic Therapeutic's A and B rounds, AbbVie is pulling the trigger on an R&D deal. The drugmaker is ponying up $100 million for the option to exclusively license multiple programs from Morphic that target fibrotic diseases. Under the agreement, Morphic will carry out R&D work on its fibrosis drugs through IND-enabling studies.

October 18, 2018 - Fierce Biotech
LogicBio Therapeutics' Nasdaq IPO is slated for next week and the gene-editing player has set its
Amgen has invested $66 million (£50 million) into portable genome sequencer developer Oxford Nanopore. The Big Pharma hopes the investment will align with its efforts in using genomics to inform its drug development. Its subsidiary, deCode Genetics, has used Oxford Nanopore devices to sequence "several hundred" human genomes, as well as to help identify and validate new targets.
October 17, 2018 -  Bio Space
Recently, 23andMe partnered with GlaxoSmithKline , causing the Forbes Technology Councilto cite eight ways these types of partnerships will affect disease treatments. These types of partnerships aren't exactly new. Biopharma companies are partnering with tech companies, and the emphasis is on big data analytics and tearing down silos and creating access across multiple databases of health, personal and genomic data.

October 16, 2018 - Bio Space
Conversant Bio, Folio Bio, Discovery Life Sciences and Phylogeny announced today that they have merged under the name Discovery Life Sciences™ (Discovery) to create a global market leader in biospecimen analysis and procurement for the pharmaceutical, biotechnology and diagnostics industries.

October 16, 2018 - Fierce Biotech
The Chan Zuckerberg Biohub, a non-profit research organization formed by Facebook founder Mark Zuckerberg and his wife, pediatrician Priscilla Chan, has unveiled an open-source platform for charting international infectious disease outbreaks in real-time. The cloud-based system, dubbed IDseq, analyzes metagenomic data to identify samples of bacteria, viruses, fungi or parasites, and produces a report detailing trends spotted in labs and clinics elsewhere in the world.

Recent Materials Providing Insight Into Healthcare & Related Industries

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