Week of June 25, 2018 | Vol. 7, Issue 25
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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.
Roche Acquires Remaining Shares of Foundation Medicine For $2.4 Billion
Three years after acquiring a majority stake in Foundation Medicine, Roche will bring the company's sequencing diagnostics platform under the Roche umbrella

As part of the Roche family, Foundation Medicine will remain an autonomous company, Roche said this morning. The Massachusetts company's services include a full suite of comprehensive genomic profiling (CGP) assays that are used to identify the molecular alterations in a patient's cancer and match them with relevant targeted therapies, immunotherapies and clinical trials. Roche initially became a majority stakeholder in Foundation Medicine in 2015. The $1.03 billion deal  was expected to provide funding of Foundation Medicine's genomic profiling tests for up to five years. In December Foundation Medicine secured approval from the U.S. Food and Drug Administration for its sequencing diagnostics test for solid tumors that can detect cancer-causing mutations in 324 genes.

C ontinue Reading at BioSpace .
Private Equity Firm Veritas To Buy Cotiviti In $4.9 Billion Deal
Cotviti, which provides payment accuracy & analytics services to health insurers & healthcare companies, will combine with Verscend Technologies Inc. 
Private equity firm Veritas Capital on Tuesday agreed to buy Cotiviti Holdings Inc in a $4.9 billion deal to expand its Verscend healthcare IT business. Cotiviti's shares were up 10.5 percent at $44.07 in morning trade, close to the offer price of $44.75 per share. "We see this (Verscend) as a natural strategic buyer," said Leerink analyst Ana Gupte, noting that anti-trust issues with the deal seemed to be manageable at an initial glance. Cotiviti, which had a market value of $3.71 billion to its last close, debuted at a price of $19 per share in 2016, valuing it at about $1.7 billion. Private equity firms such as Veritas have been investing more in public companies than at any time since the financial crisis, with a focus on healthcare companies. KKR & Co said earlier this month that it would buy Envision Healthcare Corp, one of the biggest U.S. providers of physicians to hospitals, in a deal valued at $5.57 billion.

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
 16 transactions totaling $5,964 million 
 Supplies, Equipment & Services
 14 transactions totaling $645 million
 Healthcare IT & Managed Care
 6 transactions totaling $5,290 million
 Healthcare Facilities & Distributors
 4 transactions totaling $124 million

Pharma & Biotech
16 private placements totaling $491 million
Supplies, Equipment & Services
11 private placements totaling $109 million
Healthcare IT & Managed Care
3 private placements 
Healthcare Facilities & Distributors
3 private placements 

 Pharma & Biotech
 17 public offerings totaling $757 million
 Supplies, Equipment & Services
 6 public offerings totaling $26 million
 Healthcare IT & Managed Care
 0 public offerings
 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.
June 22, 2018 -  BioSpace
The scope of the U.S.  Food and Drug Administration (FDA)'s mission could become much narrower if a proposed restructuring of the federal government comes to fruition.The mission of the FDA could be narrowed to a sole focus on medication under a proposal from the administration of President Donald Trump. The FDA would lose its oversight of some parts of the food chain to the U.S. Department of Agriculture. The new FDA, under the proposed change, would become the Federal Drug Administration,  STAT News  first reported. Currently, the FDA is responsible for the safety of all U.S. domestic and imported foods except meat, poultry, processed eggs and catfish. The FDA also conducts inspections of most establishments that manufacture, process, pack, or hold foods, the White House noted in its proposal released Thursday.
June 21, 2018 -  BioSpace
The first company has provided a potential out-of-pocket price for patients who seek access through the recently passed federal Right-to-Try legislation and it's not cheap. BrainStorm Cell Therapeutics  could charge more than $300,000 for its Phase III experimental amyotrophic lateral sclerosis therapy NurOwn.

June 21, 2018 -  Fierce Biotech
Last summer, a team of scientists at Massachusetts General Hospital presented evidence showing that the tuberculosis vaccine bacillus Calmette-Guérin (BCG) restores beneficial immune cells in a way that could help treat Type 1 diabetes. Now the team is building on that base of research with strong data indicating that two doses of the vaccine restore blood sugar to near-normal levels for as long as eight years-and they're providing more insight into how the improvement happens.
June 20, 2018 -  BioSpace
TG Therapeutics and NovImmune SA struck a collaborative deal worth up to $185 million The two companies will combine their resources to develop Novimmune's novel first-in-class anti-CD47/anti-CD19 bispecific antibody known as TG-1801, which was previously known as NI-1701. TG-1801 is a fully-human IgG1.

June 19, 2018 -  The Wall Street Journal
One perverse effect of the Affordable Care Act is that corporate America escaped some of the onerous mandates that hurt small enterprises. The Trump Administration is now trying to mitigate that inequity with a rule on association health plans, or AHPs, and perhaps the result will be a durable and popular alternative to ObamaCare coverage.

June 18, 2018 -  Fierce Biotech
Evotec has wrapped up  a deal for Sanofi's infectious disease unit. The agreement sees Sanofi transfer 100 employees, more than 10 drug candidates and €60 million ($70 million) upfront to the German service provider. Sanofi revealed it had entered into exclusive talks with Evotec about the future of its infectious disease unit three months ago. Now, those talks have matured into a definitive agreement that will see Evotec take charge of an R&D site near the French city of Lyon and take responsibility for advancing a pipeline of infectious disease drugs.
Current Opportunities Available Through Bourne Partners
Project Barracuda
Asset Divestiture
Midwestern US | Consumer Health/OTC | Approximately $31.5mm Revenue | Approximately $12mm EBITDA
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
June 24 - 28, 2018  | Boston, MA
October 2, 2018  | Charlotte, NC 
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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