Week of February 5, 2018 | Vol. 7, Issue 5
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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.
Sanofi Inks $4.8B Ablynx Buyout to Pip Novo in M&A Fight 
The French pharma' s 45-a-share cash bid enabled it to leapfrog Novo Nordisk 

Ablynx was put in play earlier this month when Novo went public with its attempts to buy the Belgian biotech. At that stage, Novo had failed to bring Ablynx to the deal table with an offer of €28 a share plus a little more in CVRs.  Sanofi has shown a ruthlessness absent in its earlier M&A activities to get a deal done. But it has paid a premium of more than 100% over Ablynx's share price before Novo disclosed its desire to buy the company. The Ablynx and Sanofi boards of directors have unanimously approved the deal. In return for the outlay, Sanofi will get a rare blood disorder drug-caplacizumab-that is closing in on approvals in Europe and the U.S. Analysts at Jefferies expect annual sales of caplacizumab to top out at $500 million and think the drug will be highly profitable. At Sanofi, the drug will slip into a growing blood disorder franchise alongside assets from its $11.6 billion Bioverativ buyout and revised deal with Alnylam.

C ontinue Reading at  Fierce Biotech.
Varian Medical Swoops On Australia's Sirtex in $1.3 Billion Cash Deal
Cancer treatment company Varian Medical Systems is buying liver-cancer treatment maker Sirtex Medical in the latest wave of big healthcare M&A deals

Sirtex, whose shares had halved over the past two years until the deal was announced on Tuesday and which swung to a full-year loss after its technology failed in three major tests, recommended the buyout as an "attractive outcome". California-based Varian's offer of A$28 in cash per share was 49 percent above Sirtex's closing price of A$18.83 on Monday, and comes amid a multibillion dollar shopping spree in the sector as big companies buy their way to growth. "The bid price is definitely a good premium, I would struggle to see anyone else coming over the top," said Mathan Somasundaram, Market Portfolio Strategist at stockbroker Blue Ocean Equities, adding the bid was timely. Sirtex shares jumped 46 percent to A$27.49 on Wednesday to a two-month high in their first trading session since the deal was announced, suggesting investors are confident it will proceed.

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
 13 transactions totaling $7,983 million 
 Supplies, Equipment & Services
 16 transactions totaling $248 million
 Healthcare IT & Managed Care
 2 transactions 
 Healthcare Facilities & Distributors
 7 transactions totaling $66 million

Pharma & Biotech
10 private placements totaling $754 million
Supplies, Equipment & Services
16 private placements totaling $118 million
Healthcare IT & Managed Care
3 private placements totaling $144 million
Healthcare Facilities & Distributors
1 private placement totaling $40 million

 Pharma & Biotech
 17 public offerings totaling $1,617 million
 Supplies, Equipment & Services
 7 public offerings totaling $127 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.
February 2, 2018 -  Fierce Biotech
Moderna has raised $500 million from private investors. The huge series G round equips Moderna to gather more data on its pipeline of mRNA candidates and build out its manufacturing capabilities ahead of its long-anticipated IPO.  Cambridge, Massachusetts-based Moderna looked well beyond the familiar circle of U.S. biotech VCs to raise the money. Abu Dhabi Investment Authority, Julius Baer, the investment arm of the Singapore Economic Development Board and Sequoia Capital China all contributed to the round. The new backers were joined by some of the companies that participated in its earlier rounds, including Fidelity, Pictet and Viking Global Investors.

To Deal With a Flu Onslaught, Emergency Rooms Expand Into Waiting Rooms
February 1, 2018 -  The Wall Street Journal
Emergency departments across the U.S. have been slammed in recent weeks by an onslaught of flu visits, forcing hospitals to devise new spaces to house patients, to restrict visitors and to postpone elective surgeries.  Visits to hospital emergency departments, urgent care centers and other outpatient clinics by people with flu symptoms have been skyrocketing for several weeks. 

Seattle Genetics sets $614M buyout of Cascadian and its breast cancer program
January 31, 2018 - Fierce Biotech
After a multibillion-dollar deal to buy Immunomedics fell through last May, Seattle Genetics has scaled down its spending as it sets up a $614 million deal for Cascadian Therapeutics.  The biotech gets in return for its cash, worth $10 a share (a 69% premium from its shares yesterday), Cascadian's tucatinib, an oral tyrosine kinase inhibitor, which is pivotal midstage tests for advanced HER2 breast cancers. It's also slated for tests in other HER2 cancers, such as colon cancer.

January 30, 2018 -  Reuters
Amazon.com Inc., Berkshire Hathaway Inc. and JPMorgan Chase & Co said on Tuesday  they will form a company to cut health costs for hundreds of thousands of their employees, setting up a major challenge to an inefficient U.S. healthcare system. The move by three of the best-known U.S. business leaders - Amazon's Jeff Bezos, Berkshire's Warren Buffett and JPMorgan's Jamie Dimon - would take on the world's most expensive healthcare system, whose mounting costs have hurt corporate profit. Shares of U.S. healthcare companies fell across the board.

January 29, 2018 -  Fierce Biotech
The FDA accepted  Theravance Biopharma and Mylan's nebulized chronic obstructive pulmonary disease drug for review, with a PDUFA date of Nov. 13. If cleared, revefenacin would be the first once-daily, nebulized bronchodilator for COPD. Revefenacin, a nebulized long-acting muscarinic antagonist (LAMA), has had a checkered past-GlaxoSmithKline acquired the rights to revefenacin in 2004 but ditched the candidate after discovering its formulation was incompatible with its proprietary inhaler.
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
An Overview of Events Hosted or Attended by the Bourne Partners Team

April 30 - May 6, 2018  | Quail Hollow Club 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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