Week of June 4, 2018 | Vol. 7, Issue 22
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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.
WellCare Health To Buy Meridian Health Plans For $2.5 Billion
The deal will help WellCare add about 1.07 million Medicaid members in Michigan and Illinois and includes the acquisition of PBM MeridianRx

WellCare Health Plans Inc said on Tuesday it would buy Meridian Health Plans of Michigan and Illinois for $2.5 billion in cash to become the top Medicaid provider in those states.  "This transaction strategically aligns with our focus on government-sponsored health plans...," WellCare Chief Executive Officer Ken Burdick said in a statement. Meridian's businesses are expected to generate more than $4.3 billion in total revenue in 2018, WellCare said. The deal comes as healthcare payers and pharmacies are responding to a shifting landscape, including changes in the Affordable Care Act, rising drug prices and the threat of competition from online retailers such as Amazon.com Inc. In December, U.S. drugstore chain operator CVS Health Corp agreed to buy U.S. health insurer Aetna Inc for $69 billion, seeking to tackle soaring healthcare spending through lower-cost medical services in pharmacies.

C ontinue Reading at Reuters .
Alibaba Injects Pharmacy Assets Into Healthcare Unit in $1.4 Billion Deal
The deal will see parent Alibaba receive newly issued shares in Ali Health, taking its economic interest in the firm to 56.2% from 48.1% currently
Chinese e-commerce giant Alibaba Group Holding Ltd will inject some of its online pharmacy business into a listed unit in a deal valued at HK$10.6 billion ($1.35 billion), the firm said in a statement on Tuesday. Alibaba Health Information Technology Ltd will buy Ali JK Nutritional Products Holding Limited, which controls sales of medical devices, healthcare products, adult products and healthcare services on Alibaba's Tmall platform. The deal should bolster business for Ali Health amid a broader push into a fast-growing healthcare technology market by other firms in China, such as Tencent Holdings-backed WeDoctor and recently listed Ping An Healthcare. Alibaba CEO Daniel Zhang said in a statement that healthcare was a "strategically important" business area for the firm and that the deal would help turn Ali Health into the country's "best healthcare ecosystem".  Ali Health's CEO added that the deal would help the firm expand by adding new categories to its offering.

C ontinue Reading at Reuters .

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
 13 transactions totaling $595 million 
 Supplies, Equipment & Services
 10 transactions totaling $386 million
 Healthcare IT & Managed Care
 3 transactions totaling $2,500 million
 Healthcare Facilities & Distributors
 8 transactions totaling $21 million

Pharma & Biotech
29 private placements totaling $466 million
Supplies, Equipment & Services
16 private placements totaling $226 million
Healthcare IT & Managed Care
3 private placements totaling $2 million
Healthcare Facilities & Distributors
2 private placements totaling $32 million

 Pharma & Biotech
 19 public offerings totaling $1,427 million
 Supplies, Equipment & Services
 4 public offerings totaling $353 million
 Healthcare IT & Managed Care
 0 public offerings
 Healthcare Facilities & Distributors
 1 public offering totaling $1 million

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.
June 1, 2018 -  BioSpace
Amgen based in Thousand Oaks, California, and The University of Texas MD Anderson Cancer Center headquartered in Houston, announced  two multi-year collaborative research deals for a broad range of cancer therapeutics. The cancers studied will include leukemia, myelodysplastic syndromes (MDS), multiple myeloma, small-cell lung cancer, and other non-lung cancers with small-cell histologies.

May 31, 2018 -  Fierce Pharma
President Donald Trump has taken pharma to task over high drug prices before, most notably with the statement that pharma is "getting away with murder." Now the president claims t he industry, in response to administration pressure, is nearly ready to do something far from its normal business model: offer "massive drops" in prices. The thing is, not only would lowering list prices be a novel move, industry sources told Politico they didn't know anything about such a plan.
May 31, 2018 -  BioSpace
It's been a busy week for Nektar Therapeutics .  The company announced  today that it had submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA)  for NKTR-181, a new molecular entity (NME), a mu-opioid agonist for pain relief. Yesterday it inke d a non-exclusive, clinical collaboration deal with Syndax Pharmaceuticals  to develop Nektar's NKTR-214, a CD122-biased agonist in combination with entinostat, Syndax's HDAC inhibitor in metastatic melanoma.

May 31, 2018 -  BioSpace
President Donald Trump signed the recently-passed 'Right to Try Act,' which will give terminally ill patients the right to seek access to medications that have yet to be approved in order to save their lives.  The legislation, which cleared Congress earlier this month,  will allow those terminally ill patients to appeal for access to those medications that could save their lives, as long as they have cleared Phase I of clinical testing. The appealing patients would not be considered part of the clinical trial and any adverse reactions to the experimental medications taken by the terminally ill patients will not affect clinical review.

May 30, 2018 -  The Wall Street Journal
The Food and Drug Administration Wednesday gave marketing clearance for a device that can potentially revamp stroke care by allowing paramedics in the field to diagnose severe strokes requiring specialized treatment.  The Lucid Robotic System is aimed at one of the central dilemmas of modern neurology: How to quickly identify patients with the most severe strokes who could benefit from being taken immediately to hospitals that can perform a complex clot-removal procedure, potentially helping to avoid major disability.

May 29, 2018 -  Fierce Pharma
On Monday, nemesis Roche said  its Tecentriq, in combination with carboplatin and Celgene's Abraxane, had topped solo chemo at helping previously untreated patients live longer and at keeping disease at bay. The company intends to share the data with regulators around the world, chief medical officer Sandra Horning said in a statement.
Current Opportunities Available Through Bourne Partners
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
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
June 4 - 7, 2018  | Boston, MA
June 24 - 28, 2018  | Boston, MA
October 2, 2018  | 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

Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202