Week of July 23, 2018 | Vol. 7, Issue 29
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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.
Galapagos & MorphoSys Ink Deal With Novartis For $1.111 Billion+
The agreement is built around MOR106, an IgG1 monoclonal antibody that was created in a collaboration between MorphoSys and Galapagos.

Under the terms of the deal, Novartis will handle all future research, development, manufacturing and commercialization costs for the compound. Those costs include the ongoing Phase II IGUANA clinical trial in atopic dermatitis in addition to a planned Phase I trial to determine the safety and efficacy of a subcutaneous formulation of MOR106 in healthy patients and atopic dermatitis patients.  MorphoSys and Galapagos will run additional trials in support of the compound in atopic dermatitis, while Novartis will research the antibody in other indications. In addition to the funding of the research programs, Novartis will pay the two companies jointly an upfront fee of $111 million. Additional milestone payments of up to $1 billion (U.S.) are on the table, as well as tiered royalties on net commercial sales in the low-teens to low-twenties. Under a 2008 deal, Galapagos and MorphoSys will split the payments equally.

C ontinue Reading at BioSpace .
PureTech Health And Roche Sign Collaboration Deal Worth $1 Billion-Plus
The companies signed a multi-year collaboration deal to advance PureTech's milk-derived exosome platform technology for oral dosing of Roche's antisense oligonucleotide platform. 
Under the terms of the agreement, Roche will pay PureTech up to $36 million in upfront payments, research support, and early preclinical milestones. PureTech will also be eligible for development milestones worth more than $1 billion, as well as more sales milestones and royalties for an undisclosed number of products.  PureTech's platform allows for the oral administration of complex drug payloads, such as nucleic acids, peptides, and small molecules. The exosomes used for this platform are believed to move by way of lymphatic circulation, which opens up the possibility of targeting immune cells in new ways. Also, drugs that can be taken orally generally have a competitive advantage over drugs that require injections or infusions. "We are excited to accelerate the development of this promising technology from our internal lymphatic and immune cell trafficking programs," said Daphne Zohar, PureTech's co-founder and chief executive officer, in a statement. "The expertise and resources that Roche is bringing to the collaboration will help us to potentially address one of the biggest challenges in olignonucleotide-based therapeutic development: oral administration of nucleic acids."

C ontinue Reading at BioSpace .
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
 17 transactions totaling $2,434 million 
 Supplies, Equipment & Services
 25 transactions totaling $134 million
 Healthcare IT & Managed Care
 5 transactions 
 Healthcare Facilities & Distributors
 13 transactions totaling $1,801 million

Pharma & Biotech
26 private placements totaling $607 million
Supplies, Equipment & Services
27 private placements totaling $367 million
Healthcare IT & Managed Care
15 private placements totaling $58 million
Healthcare Facilities & Distributors
8 private placement totaling $14 million

 Pharma & Biotech
 11 public offerings totaling $776 million
 Supplies, Equipment & Services
 6 public offerings totaling $168 million
 Healthcare IT & Managed Care
 2 public offerings totaling $2 million
 Healthcare Facilities & Distributors
 2 public offerings totaling $76 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.
July 19, 2018 -  BioSpace
PTC Therapeutics, Inc. (NASDAQ: PTCT) today announced that it has entered into an agreement to acquire Agilis Biotherapeutics,  Inc., a biotechnology company advancing an innovative gene therapy platform for rare monogenic diseases that affect the central nervous system (CNS). The transaction was approved by the Boards of both companies.

Gilead's Kite and Netherlands' Gadeta Ink Strategic T-Cell Collaboration
July 19, 2018 - BioSpace
Kite, a Gilead  company based in Santa Monica, California, signed  an agreement with Utrecht, Netherlands-based Gadeta BV.  The companies will work on discovering and developing novel cancer immunotherapies based on gamma-delta T-cell receptors (TCRs).  Under the deal, Kite will fund research and development and Gadeta will be eligible for future milestone payments. Kite will also make an upfront equity investment in Gadeta, as well as be eligible for additional equity in Gadeta after certain R&D milestones are met. Kite will then have the exclusive option to acquire Gadeta.
July 18, 2018 -  BioSpace
Sanofi and REVOLUTION Medicines, Inc.  today announced an exclusive worldwide partnership to develop and commercialize targeted therapies, based on the biology of the cellular enzyme SHP2, for patients with non-small lung cancer and other types of cancer carrying certain mutations. This collaboration builds on precision oncology discoveries by REVOLUTION Medicins  and preclinical development of RMC-4630, the company's lead small molecule inhibitor of SHP2, and will apply Sanofi 's expertise in oncology research and drug development.
July 18, 2018 -  Fierce Biotech
The companies partnered  in 2017 to push the drug forward in Dravet and Lennox-Gastaut syndromes. Unlike the usual pharma/biotech deal under which Takeda might buy into a promising drug from Ovid, it was Ovid that signed on to help the Japanese pharma develop the drug, now known as TAK-935/OV-935. Takeda will lead work in Japan, with the option to do the same in Asia and other "selected geographies." Meanwhile, Ovid is taking charge of development and sales in the U.S., Europe, Canada and Israel. 

July 18, 2018 - BioSpace
EUSA Pharma (EUSA), a biopharmaceutical company focused on oncology and rare disease, announced today that it has entered into a definitive agreement with Janssen Sciences IrelandUC, subsidiary of Janssen R&D Ireland (Janssen) to acquire the global rights to SYLVANT ┬«  (siltuximab) for $115 million in cash. The transaction is subject to review under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the parties expect to close following completion of this regulatory review period and the mutual satisfaction of other remaining closing conditions. 
July 16, 2018 -  BioSpace
Shares of SIGA Technologies  soared more than 11 percent late Friday after the company announced that its smallpox treatment Tpoxx was approved  by the U.S. Food and Drug Administration (FDA).  This is the first approved treatment for the disease that at one time was believed to have been eradicated, but due to the threat of bioterrorism has become an increased concern for the world.
July 16, 2018 -  Fierce Pharma
Amgen is staring down some major competitive threats to some of its biggest sellers, meaning an acquisition could be in order . And some industry watchers have just the target in mind. Rare-disease specialist Alexion's name has been floating around as a potential buy, Bernstein analyst Ronny Gal wrote to clients Monday. One reason? For Amgen to prepare for what will likely be more than $2 billion in lost revenue, it will need to swallow a company with more than $1 billion on its top line. And there just aren't that many choices.

July 16, 2018 -  Fierce Biotech
PARP inhibitors like AstraZeneca's Lynparza and Tesaro's Zejula have revolutionized the treatment of ovarian cancers with BRCA mutations and are starting to take off in breast cancer treatment too. But the way that these drugs work could make them applicable to many more cancer types, some oncology researchers believe.
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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