Week of September 10, 2018 | Vol. 7, Issue 36

Bourne Partners is pleased to launch the first installment in a new monthly video series covering important updates in the pharma, pharma services and consumer healthcare sectors.  To watch the first video, follow the link below: 
In This Issue


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Contact Information
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.
Novartis finally unloads 300 troubled U.S. generics to India's Aurobindo for $1B
After shopping pieces of its troubled Sandoz business for months, the Swiss drugmaker has unloaded a big chunk-including some easy-to-copy generics and several manufacturing plants to India-based Aurobindo Pharma. 

While the deal relieves Novartis of a troubled franchise, it boosts Aurobindo to become the second-largest generics player by prescriptions in the U.S. Novartis said on Thursday it is selling about 300 products and several development projects in its Sandoz U.S. generic oral solids and dermatology business to Aurobindo for $900 million upfront and up to $100 million in performance payments. Combined, these products sold about $600 million in the first half of 2018, said Novartis, and Aurobindo estimated the drugs could turn up $900 million in sales for the first 12 months after the deal closes. As part of the deal, Aurobindo also gets Sandoz's dermatology development center, as well as manufacturing facilities in Wilson, North Carolina, and Hicksville and Melville, New York, which Aurobindo said are "highly complementary" to its existing production footprint. About 750 employees from those plants and dermatology sales reps will come aboard Aurobindo.

C ontinue Reading at FiercePharma .
Mylan Strikes $463 Million Deal With Novartis For CF Product Line
Mylan plunked down $463 million for Novartis' cystic fibrosis products, which includes the TOBI Podhaler and TOBI solution. 

Pennsylvania-based Mylan first hinted at the deal last month when it announced its quarterly financial report.  The company said it had entered into an agreement at the end of July with an unnamed company for some assets. At the time, Mylan remained coy about its deal partner. Finally, though, the company broke its silence in a very brief announcement. Mylan said it anticipates paying the Swiss pharma giant approximately $240 million this year as part of the agreement. The deal was finalized on Aug. 31, Mylan said. The acquisition of the cystic fibrosis products will "further enhance Mylan's respiratory portfolio in the U.S., Europe and certain Rest of World markets," the company said. Other than that, Mylan continues to remain quiet on the deal.

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
 12 transactions totaling $1,127 million
 Supplies, Equipment & Services
 32 transactions totaling $1,383 million
 Healthcare IT & Managed Care
 9 transactions totaling $308 million
 Healthcare Facilities & Distributors
 15 transactions totaling $311 million

Pharma & Biotech
24 private placements totaling $647 million
Supplies, Equipment & Services
20 private placements totaling $72 million
Healthcare IT & Managed Care
5 private placements totaling $12 million
Healthcare Facilities & Distributors
6 private placements totaling $3 million

 Pharma & Biotech
 24 public offering totaling $6,524 million
 Supplies, Equipment & Services
 5 public offerings totaling $573 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.
September 7, 2018 -  Fierce Biotech
BTG, a British specialist healthcare group has acquired  Novate Medical, a pulmonary embolism-focused medtech startup. While the upfront fee is a modest $20 million, BTG is on the hook for up to $130 million more in potential commercial and sales-related milestone payments. 

September 7, 2018 - Fierce Biotech
Boston Scientific has dropped $500 million up front to buy up Augmenix and its injectable prostate cancer spacer that helps isolate the organ during radiotherapy. The deal also provides for up to $100 million in sales-based milestone payments, as the medtech giant continues its year of acquisitions.
September 6, 2018 -  Fierce Pharma
Amid a national shortage for Mylan's EpiPen-and during a busy back-to-school season-competitors are making moves aimed at stealing share. After a recent Novartis deal to scoop up rights to Symjepi from Adamis, Kaléo Pharma has become the latest drugmaker to strike a deal aimed at making its product more widely available.

September 5, 2018 -  Fierce Pharma
CDMO Olon is continuing its expansion binge with a deal to buy an API plant in India that supplies ingredients to Novartis. The Italian generic drug and API maker said Tuesday that it is buying an API manufacturing facility in Mahad, India, that supplies ingredients to Sandoz, the generics division of Novartis.

September 5, 2018 -  BioSpace
There is a new player in the southern California biotech industry. New venture firm Westlake Village BioPartners launched with a $320 million fund and a leadership well familiar with the ins and outs of the biotech and pharma world.

September 4, 2018 -  BioSpace
MannKind Corporation, based in Westlake Village, California, and United Therapeutics, located in Silver Spring, Maryland, signed a worldwide exclusive license and collaboration deal to develop and commercialize a dry powder formulation of treprostinil.
September 4, 2018 -  Fierce Pharma
Several Indian biopharma companies are eyeing a potential buy of Bharat Serums and Vaccines in a deal that could be worth $1 billion, according to The Economic Times, which cites two sources familiar with the talks. Price remains a key stumbling block.
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
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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