Week of August 6, 2018 | Vol. 7, Issue 31
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In This Issue
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Managing Director Business Development
Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory
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INDUSTRY M&A SNAPSHOT
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.
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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.
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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.
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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.
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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
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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
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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
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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.
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RECENT INDUSTRY HEADLINES
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.
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