Week of August 6, 2018 | Vol. 7, Issue 31
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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.
Allergan Preludes Major Selloffs With $650M Almirall Dermatology Sale
Almirall has agreed to pick up a portfolio of medical dermatology products including Aczone, Tazorac, Azelex, Cordran Tape and Seysara. 
Allergan, which is shopping assets to help turn its stock price around, has taken its first small step into selloff land.  Spain's Almirall said Friday it had agreed to pick up a portfolio of medical dermatology products from the Dublin drugmaker for up to $650 million in cash, with $550 million of that sum coming up front. To RBC Capital Markets analyst Randall Stanicky, the move is a "positive first step as Allergan takes action on its strategic plan and importantly shoring up its asset base." And the way he sees it, while "the financial impact to Allergan from the transaction is relatively small," it could "have an outsized impact on sentiment." Meanwhile, Allergan is still looking ahead to bigger selloffs-particularly of its women's health and infectious disease units. On last week's second-quarter earnings call, CEO Brent Saunders noted that the infectious disease unit was drawing more interest thanks to a "larger universe of potential buyers" and safety questions surrounding the potential approval of women's health product Esmya.

C ontinue Reading at Fierce Pharma .
Bayer To Sell Prescription Dermatology Unit And Transfer 450 Employees To Leo Pharma
Leo Pharma has agreed to acquire Bayer's prescription dermatology business, which delivered $328 million in 2017 sales. 

The drugs to be sold include Bayer's topical acne drug Skinoren, fungal skin infections dual Travogen and Travocort, rosacea remedy Finacea and several topical steroids, including Advantan, Nerisona and Desonate. Bayer, however, isn't ready to let go of its over-the-counter dermatology franchise, which includes two key brands, Bepanthen, which delivered €379 million in 2017 sales, and Canesten, with 2017 sales of €278 million.  Financial details were not disclosed, but Leo said the acquisition will first close this year for the U.S., and during the second half of 2019 for the rest of markets. There were reports when Bayer first looked at selling its dermatology assets that they might go for as much as $1.1 billion. The deal follows Leo Pharma's $725 million buyout of Astellas' dermatology portfolio, which closed in 2016. The Danish company said the Bayer deal represents a chance to further expand its presence in key markets around the world and broaden its dermatology treatment range.

C ontinue Reading at Fierce Pharma .
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
 0 transactions
 Supplies, Equipment & Services
 17 transactions totaling $856 million
 Healthcare IT & Managed Care
 1 transaction
 Healthcare Facilities & Distributors
 6 transactions totaling $5,751 million

Pharma & Biotech
41 private placements totaling $1,470 million
Supplies, Equipment & Services
17 private placements totaling $71 million
Healthcare IT & Managed Care
8 private placements totaling $159 million
Healthcare Facilities & Distributors
6 private placement totaling $10 million

 Pharma & Biotech
 18 public offerings totaling $2,253 million
 Supplies, Equipment & Services
 1 public offerings totaling $189 million
 Healthcare IT & Managed Care
 2 public offerings totaling $351 million
 Healthcare Facilities & Distributors
 0 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.
August 2, 2018 -  BioSpace
Regenacy Pharmaceutical, LLC, a clinical-stage biopharmaceutical company developing breakthrough treatments for diabetic and other peripheral neuropathies, today announced a collaboration with the Charcot-Marie-Tooth Association (CMTA), a registered non-profit organization serving the hereditary neuropathy patient community, to validate the role of HDAC6 in multiple forms of Charcot-Marie-Tooth (CMT) disease and evaluate the efficacy of ricolinostat, a selective HDAC6 inhibitor, in animal models. In addition, the company announced the appointment of David Herrmann, M.B.B.Ch., to its Scientific Advisory Board. Dr. Herrmann is Chief of the Neuromuscular Division & Director of the Peripheral Neuropathy Clinics and Cutaneous Innervation Laboratory in the Department of Neurology at the University of Rochester  and a member of the STAR (Strategy to Accelerate Research) advisory board for the CMTA.
August 1, 2018 -  Fierce Pharma
Another drugmaker has confirmed some of its manufacturing facilities are stockpiling key drugs and vaccines as it looks like the U.K. and Europe are barreling toward a head-on collision with Brexit.  French drugmaker Sanofi is the latest Big Pharma player to confirm that it has been adding to supplies and making other contingency plans in the event that the two powers can't strike a deal about how products will move between the EU and the U.K.

August 1, 2018 - BioSpace
Laekna, headquartered in Shanghai, China, signed  a deal with Novartis Pharma AG  for exclusive worldwide rights to two oral Novartis clinical-stage cancer drugs. The compounds are oral pan-Akt kinase inhibitors, afuresertib (ASB183) and uprosertib (UPB795). More than 10 clinical Phase I/II studies have been performed on the drugs for a variety of cancer indications, including ovarian and gastric cancer, multiple myeloma, melanoma, and others.
August 1, 2018 -  The Wall Street Journal 
Activist investor Carl Icahn has built a sizable stake in  Cigna   Corp.  and plans to vote against the health insurer's $54 billion planned purchase of  Express Scripts Holding  Co.,  according to people familiar with the matter.

July 31, 2018 -  BioSpace
In March, San Diego-based Orexigen Therapeutics  filed for bankruptcy. Back in April, Orexigen entered  into an asset purchase deal with Nalproprion Pharmaceuticals  to sell most of its assets, subject to court approval. Under that deal, Orexigen would sell global rights to Contrave (naltrexone HCl/bupropion HCL extended release)/Mysimba (naltrexone HCl and bupropion HCL prolonged release) and other assets. Nalpropion was formed as a special purpose entity by an investor group that includes Pernix Therapeutics Holdings. 

July 30, 2018 -  Reuters
Australian hospital operator Healthscope Ltd  said it would sell its Asian pathology business to private equity giant TPG Capital Management LP to cut debt and bankroll growth plans, months after rejecting two buyout approaches. The A$279 million ($206.5 million) sale includes 39 pathology laboratories in Singapore, Malaysia and Vietnam, the Sydney-listed company said in a statement to the Australian Securities Exchange.
July 30, 2018 -  Fierce Biotech
HiFiBiO Therapeutics has signed a deal with Japanese Big Pharma and biotech friend Takeda, to work on antibody therapies for various gastrointestinal diseases, cancers and other disorders.  HiFiBiO, which works on antibodies through single-B-cell screening and analysis, will receive upfront, R&D, milestone and royalty payments based on antibodies delivered to Takeda for development and sales, but both are keeping tight-lipped  on just how much that's all worth.   
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
September 17 - 18, 2018 | Bethesda, MD
September 27 - 28, 2018 | New Brunswick, NJ
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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