Week of October 15, 2018 | Vol. 7, Issue 41
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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.
CVS, Aetna Win U.S. Approval For $69B Merger
Pharmacy chain CVS Health Corp won U.S. antitrust approval for its $69 billion acquisition of health insurer Aetna Inc.

The Justice Department said on Wednesday, paving the way for a combination the companies say can help cut soaring U.S. healthcare costs.  The companies have said they will save administrative and patient care costs when they combine, in part by steering Aetna customers to walk-in clinics in CVS stores for less expensive medical services. CVS could offer more preventive care services and screenings in its clinics, such as enabling patients with diabetes to monitor blood sugar levels, avoiding higher cost visits to doctors or emergency rooms. CVS aims to cut costs by $750 million annually by the end of the second year after the deal closes. It is the second large recent healthcare deal to win U.S. Justice Department approval. The agency gave the green light to health insurer Cigna Corp's $52 billion acquisition of the nation's largest pharmacy benefit manager (PBM), Express Scripts Holding Co, on Sept. 17.
C ontinue Reading at Reuters .
Big Capio Shareholders Back $900 Million Ramsay Takeover
Leading shareholders in Sweden's Capio swung behind a $900 million takeover bid from France's Ramsay Generale de Sante.

Capio's three biggest investors as of June 30 - Swedbank Robur, R12 Kapital and AP4 - all said they were in favor of the bid at the increased price. They account for around one quarter of capital and votes in total. Ramsay Generale, 50.9 percent owned by Australia's Ramsay Health Care, had raised its bid to 58 crowns per share on Monday after Capio's board rejected an initial bid of 48.50 crowns in July. R12 Kapital told Reuters it would accept the offer, while AP4 - The Fourth Swedish National Pension Fund - said it was likely to do so. "We think the judgement by the board is reasonable and that the bid level reflects the company's potential, which the previous bid did not," a Swedbank Robur spokeswoman said in an e-mail. The Capio board backed the bid on Wednesday and also withdrew its own proposal to sell Capio France.

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
19 transactions totaling $1,336 million
Supplies, Equipment & Services
19 transactions totaling $360 million
Healthcare IT & Managed Care
5 transactions
Healthcare Facilities & Distributors
11 transactions totaling $145 million

Pharma & Biotech
20 private placements totaling $394 million
Supplies, Equipment & Services
28 private placements totaling $550 million
Healthcare IT & Managed Care
14 private placements totaling $34 million
Healthcare Facilities & Distributors
4 private placements totaling $10 million

Pharma & Biotech
12 public offering totaling $667 million
Supplies, Equipment & Services
6 public offerings totaling $171
Healthcare IT & Managed Care
0 public offerings
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 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.
October 12, 2018 - Bio Space
Alliqua Biomedical, Inc. (Nasdaq:ALQA) and Adynxx, Inc., a privately held biopharmaceutical company, today announced that they have entered into a definitive merger agreement under which the stockholders of Adynxx would become the majority owners of Alliqua's outstanding common stock on a fully-diluted basis.

October 11, 2018 - Fierce Biotech
Otsuka Pharmaceutical and Proteus Digital Health have re-upped their global smart-tablet partnership for another five years, aiming to develop a new generation of ingestible sensors. To kick off the expanded collaboration, Otsuka has handed Proteus $88 million in a mix of equity and other payments to help fund a portfolio of new digital medicines focused on mental health.

October 11, 2018 - Bio Space
Spherix Incorporated (Nasdaq: SPEX) today announced that it has entered into a merger agreement with CBM BioPharma, Inc. ("CBM") that will transform Spherix  into an innovative pharmaceutical company with pioneering drugs and treatments focused on the multibillion dollar oncology therapeutics market.

October 10, 2018 - Fierce Biotech
LogicBio Therapeutics' Nasdaq IPO is slated for next week and the gene-editing player has set its terms-it plans to raise $75 million to advance its lead asset, a treatment for the genetic liver disease methylmalonic acidemia (MMA), into the clinic. The Cambridge, Massachusetts-based biotech could raise up to $81 million if it hits the high end of its price range, according to a Renaissance Capital report.
October 10, 2018 -  Fierce Pharma
Israel-based Teva, whose pledge to unload manufacturing plants in its home country sparked strikes, is reportedly close to selling a site in Kiryat Shmona. The possible buyer is competitor B. Braun Melsungen, a source told Calcalist. Meir Ben Elul, head of the plant's union committee, also told the Israeli publication that a deal for the plant, which employees about 200, is "very close" to being completed.

October 9, 2018 - Bio Space
The U.S. Food and Drug Administration (FDA) gave Akcea Therapeutics and its parent company Ionis Pharmaceuticals the green light for Tegsedi, its treatment for polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults.

October 8, 2018 - Bio Space
ImaginAb, Inc., an emerging immuno-oncology imaging company, today announced that it has entered into a multi-year, non-exclusive licensing collaboration with Merck, known as MSD outside the United States and Canada.  Under the terms of the agreement, Merck will purchase ImaginAb's novel minibody CD8 T Cell imaging agent for use in immuno-oncology clinical trials for multiple types of cancers.

Biotech that bought GlaxoSmithKline's 'bubble boy' drug is building stem cell manufacturing facility in U.S.  
October 8, 2018 - Fierce Pharma
Another cell manufacturing facility will be built in the U.S., this one by a transatlantic biotech in which GlaxoSmithKline owns a sizable share.

Recent Materials Providing Insight Into Healthcare & Related Industries
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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