Week of November 27, 2017 | Vol. 6, Issue 46
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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.
After Penning Loxo Deal, Bayer Signs Another $1B Research & Development Pact
The overall deal could be worth as much as $1.11 billion in milestone bonuses

Bayer has signed a new and potentially major research pact with Japan's PeptiDream, marking the second big biobucks deal of its kind for the German pharma in the past week.  There's no breakdown or word on the upfront payment (though there is one), but the overall deal  could be worth as much as $1.11 billion (¥124.5 billion) in milestone bonuses, as well as royalties on sales. With the normal caveats applied, i.e., hitting all these requires all R&D and sales to hit every milestone perfectly-an unlikely scenario-the deal sees the Japanese biotech use its Peptide Discovery Platform System (PDPS) tech to find macrocyclic/constrained peptides against a whole load of targets "of interest selected by Bayer," as well as to "optimize hit peptides into therapeutic peptides or small molecule products." The German biopharma also gets an option to haggle for an extension of the license to peptide-drug conjugate (PDC) for "diagnostic, bioimaging, and agricultural use and applications." It keeps hold of the right to develop and sell any and all compounds that could come out of the collaboration.

Continue Reading at  Fierce Biotech .
LivaNova To Offload Cardiac Rhythm Unit For $190 Million
LivaNova has inked a pact to sell its Cardiac Rhythm Management (CRM) business to its joint partner MicroPort Scientific in an all cash deal 

The London-based company has been seeking a buyer  for its CRM unit since at least September. The business develops and markets devices for the diagnosis and treatment of heart failure and cardiac arrhythmias. These include defibrillators, pacemakers and cardiac re-synchronization therapy devices. Cardiac Surgery and Neuromodulation make up LivaNova's two other businesses. CRM has a strong presence in Europe and Japan, posting $249 million in net sales for fiscal 2016. But LivaNova is letting the business go, as it no longer fits in with the direction the company is going. "The CRM business franchise is a global business and strong regional player with attractive assets, a robust pipeline and growth potential," said LivaNova CEO Damien McDonald when the company announced is plans for the CRM business. "However, it is no longer a strategic fit within LivaNova's portfolio." The all-cash deal is slated to close in the second quarter of 2018.

C ontinue Reading at  Fierce Biotech.

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
 8 transactions totaling $323 million 
 Supplies, Equipment & Services
 12 transactions totaling $1,925 million
 Healthcare IT & Managed Care
 7 transactions totaling $0 million
 Healthcare Facilities & Distributors
 14 transactions totaling $1,529 million

Pharma & Biotech
23 private placements totaling $937 million
Supplies, Equipment & Services
13 private placements totaling $113 million
Healthcare IT & Managed Care
9 private placements totaling $283 million
Healthcare Facilities & Distributors
3 private placements totaling $21 million

 Pharma & Biotech
 14 public offering totaling $236 million
 Supplies, Equipment & Services
 9 public offerings totaling $1,952 million
 Healthcare IT & Managed Care
 1 public offerings totaling $57 million
 Healthcare Facilities & Distributors
 1 public offering totaling $191 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.
November 22, 2017 -  BioSpace
While the Trump Administration and the federal government makes pronouncements  over the opioid epidemic with very little teeth, a number of biopharma companies are making strides in developing non-opioid pain killers or opioids that are more difficult to abuse. A case in point is Canton, Massachusetts-based Collegium Pharmaceutical. Most recently, Collegium persuaded Cigna, Humana, Navitus and other health insurers in Florida and Pennsylvania to cover its Xtampza instead of Purdue Pharma's OxyContin. Florida Blue, the state's largest insurer, plans to drop OxyContin in January. And on Nov. 7, the U.S. Food and Drug Administration (FDA) approved Collegium's Supplemental New Drug Application (sNDA) for the labeling of Xtampza ER to change the label to indicate it was more difficult to abuse than the abuse-deterrent version of OxyContin.

November 22, 2017 -  PharmaPhorum
Today could be a major turning point for the UK biotech sector, as changes in government policy could help channel billions of new investment into drug discovery and development.  Biotech and life sciences is one of the UK's most promising hi-tech sectors, but is currently held back compared to US counterparts because of a lack of mid-to-late-stage funding. This is seen as one of the main reasons why the country has failed to produce a world-conquering biotech firm to match American success stories such as Amgen or Genentech.

Acasti Catapults on $133M Deal With Unnamed Leading China-Based Pharma 
November 20, 2017 -  BioSpace
Acasti Pharma, a biopharmaceutical innovator focused on the research, development and commercialization of its prescription drug candidate CaPre® (omega-3 phospholipid) for the treatment of severe hypertriglyceridemia, today announced that the company recently entered into a non-binding term sheet with a leading China-based pharmaceutical company. Completion of the transaction is subject to further negotiation and execution of a definitive agreement, which once signed would grant an exclusive license to the Chinese pharmaceutical company to commercialize CaPre in certain Asian countries, including China. With the high prevalence of hypertriglyceridemia in Asia, this potential partnership presents a significant opportunity for Acasti and CaPre.

November 20, 2017 -  Reuters
South African private hospital group Mediclinic does not intend to make another offer for Spire Healthcare , the firm said on Monday after the British company rejected an earlier bid. Spire, in which Mediclinic holds a stake of almost 30 percent, last month rejected a full takeover offer which valued the company at 1.2 billion pounds ($1.6 billion). Mediclinic had until 1700 GMT on Monday to either make a new offer for Spire or walk away. According to British takeover rules, Mediclinic cannot make another offer for Spire for six months unless there is a change in circumstances.
Current Opportunities Available Through Bourne Partners
Project Longhorn 
Sell-side M&A
Southeastern US  |  CDMO  |  Approximately $85mm Revenue  |   Approximately $8mm EBITDA

Project Crimson 
Sell-side M&A
Southeastern US  |  CMO  |  Approximately --- Revenue  |   Approximately --- EBITDA

Project Ocean 
Sell-side M&A
Northeastern US  |  CDMO  |  Approximately $6mm Revenue  |   Approximately NM EBITDA

Project Magnolia 
Sell-side M&A
Mid-Atlantic US  |  CRO  |  Approximately $25mm Revenue  |   Approximately NM EBITDA

Project Barracuda 
Sell-side M&A
OTC Product  |  Approximately $31mm Revenue  |   Approximately $12mm Contribution Margin
An Overview of Events Hosted or Attended by the Bourne Partners Team
36th Annual J.P.Morgan Healthcare Conference
January 8-11, 2018 | San Francisco, CA
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
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