Week of December 24, 2018 | Vol. 7, Issue 51
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Managing Director
Business Development
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 click on the chart above to download complete transaction tables broken out by industry subsectors.
Bristol-Myers Squibb nears $1.6B sale of OTC unit Upsa to Taisho: report
Amid an industrywide shift away from the sector, Bristol-Myers Squibb is close to becoming the latest Big Pharma to exit consumer health

The two companies are nearing a deal for Upsa, BMS' French OTC unit, Bloomberg's sources said, adding that BMS could rake in $1.6 billion with a deal. An agreement could arrive as early as this week.
"No decision as to the future of the business has been made," a spokeswoman said by email, adding that the company "may also ultimately determine to retain and grow the business." Bristol has been looking to offload the unit since June, when it announced a strategic review. Since then, rumors have swirled that players such as Stada and Procter & Gamble could come forth to nab Upsa, which sells painkillers, sleep drugs and more. But if it's in fact Taisho that walks away with the deal, it won't be the first time the two parties have done business. In 2009, the Japanese drugmaker inked a pact to buy part of Bristol's Asia-Pacific OTC business for $310 million, Bloomberg noted. BMS, meanwhile, wouldn't mind a cash infusion to help it double down on its targeted growth areas which include, of course, immuno-oncology. The company's Opdivo checkpoint inhibitor has lost its grip on the market's top spot, but Bristol executives insisted during its third-quarter earnings call that the product would continue expanding next year.

C ontinue Reading at FiercePharma .
Pfizer, Glaxo to Create Over-the-Counter Drug Giant
The deal will free up both to concentrate on prescription medicines, which tend to be more profitable, though higher risk

Pfizer Inc. and GlaxoSmithKline PLC  plan to combine their consumer health-care units and eventually spin off the joint venture, creating the world's largest seller of drugstore staples like Advil and Sensodyne toothpaste. The joint venture represents an unexpected conclusion to a yearlong process by Pfizer to shed its consumer business, as it and other pharmaceutical companies focus on higher-margin prescription drugs. While Glaxo has shared that focus, the British drugmaker had remained committed to its consumer business, which its chief executive led before her promotion to the top job last year. The planned spinoff also represents a breakup of Glaxo, which currently generates around a quarter of its revenue from consumer products, compared with 7% at Pfizer. Glaxo will hold a 68% stake and New York-based Pfizer the remaining 32% in the new joint venture, which generated combined sales of $12.7 billion last year. Among its other brands are nicotine-replacement gum Nicorette, heartburn tablets Tums and Centrum multivitamins.

C ontinue Reading at The Wall Street Journal .
Cigna Closes $54 Billion Purchase of Express Scripts
Cigna closed its deal to buy Express Scripts, creating one of the biggest providers of pharmacy benefits and insurance plans in the U.S.

Cigna's deal puts it in direct competition with two other healthcare companies set up the same way - Aetna with CVS Health Corp and UnitedHealth Group Inc  with Optum. Cigna's deal has already passed antitrust scrutiny. Cigna will start offering new products next year to its corporate health insurance customers, including access to Express Scripts' specialty pharmacy, which has cost savings programs in treatment areas such as cancer, its top executive said in an interview on Thursday. Prescription drugs that require special handling and are delivered to a doctor's office or patient home by specialty pharmacies are a growing part of employer healthcare spending and rising U.S. drug costs. Many new drugs costs tens of thousands of dollars when they are launched and drugmakers raise the price of older drugs once or twice a year.

C ontinue Reading at Reuters .
An Overview of Transactions Within Market Subsegments
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. Total transaction values are provided in USD millions.

Pharma & Biotech
7 transactions totaling $238 million
Supplies, Equipment & Services
23 transactions totaling $1,579 million
Healthcare IT & Managed Care
3 transactions totaling $368 million 
Healthcare Facilities & Distributors
8 transactions totaling $609 million

Pharma & Biotech
30 private placements totaling $583 million
Supplies, Equipment & Services
24 private placements totaling $672 million
Healthcare IT & Managed Care
7 private placements totaling $83 million
Healthcare Facilities & Distributors
5 private placements totaling $9 million

Pharma & Biotech
16 public offering totaling $635 million
Supplies, Equipment & Services
8 public offerings totaling $77 million
Healthcare IT & Managed Care
2 public offering totaling $219 million
Healthcare Facilities & Distributors
public offering totaling $97 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.

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.
December 21, 2018 - BioSpace
The deal covers BI 860585, a Phase II-ready potent and selective ATP-competitive mTOR serine/threonine kinase inhibitor. BI 860585 has already gone through a Phase I trial of 90 patients with advanced solid tumors where the drug was tested as both a single agent and in combination with chemotherapy. The Phase I data, Xynomic said, showed that BI 860585 was well-tolerated and the treatment achieved disease control rates that include partial response plus stable disease of 20 percent, 28 percent and 58 percent, respectively.

December 20, 2018 - Fierce Pharma
U.S. regulators green-lighted the fast-growing PARP inhibitor in BRCA-mutated ovarian cancer patients who've responded partially or completely to an initial round of chemo. They based the decision on data showing the drug could cut the risk of disease progression or death by an eye-popping 70% in the population, helping 60% of women in the trial log three years without a relapse.

Relay Therapeutics bags $400M to ramp up discovery and push into the clinic
December 20, 2018 - Fierce Biotech
Two weeks after expanding its R&D team, Relay Therapeutics is reeling in a massive $400 million series C round to boost its platform technology and discovery efforts, build its pipeline and get into the clinic.  The company worked quietly for about a year before launching  out of Third Rock Ventures with a $57 million series A in September 2016. Its mission? To create new treatments against targets that were previously considered undruggable, with an initial focus on cancer. 

December 19, 2018 - Reuters
Britain's competition watchdog said on Wednesday Thermo Fisher Scientific Inc's (TMO.N) $925 million acquisitions of Roper Technologies Inc's (ROP.N) unit Gatan raised concerns that prices of microscopes could go up and quality could suffer.

December 18, 2018 - Reuters
Home healthcare provider Civitas Solutions Inc  said on Tuesday it would sell itself to funds advised by Centerbridge Partners L.P. in a deal valued at $641 million.

December 18, 2018 - BioPharma Dive
Through the deal, Pfizer gets access to Kineta's lead RIG-I discovery program and related compounds in exchange for $15 million upfront. If all goes well, however, Kineta stands to earn quite a bit more: Pfizer has lined up $505 million in R&D and commercial milestone payments.

Mallinckrodt spinoff to include 7 manufacturing sites in U.S. and Japan
December 18, 2018 - Fierce Pharma
With its plan for a spinoff into two companies, Mallinckrodt will create an API and generics operation with a large controlled substances and acetaminophen business and seven manufacturing facilities split between the U.S. and Japan.

December 17, 2018 - Bio Space
Ligand will pay $10 million to Palvella Therapeutics and in return will receive a tiered royalty on net sales in the mid-to-upper single digits, as well as regulatory and financing milestones. Ligand will not incur any expenses to develop or commercialize PTX-022.
Innovent buys Chinese rights to Incyte drugs for $40M upfront
December 17, 2018 - Fierce Biotech
Innovent Biologics has bagged the Chinese rights to three clinical-phase oncology and hematology drugs in development at Incyte. The agreement sees Innovent pay $40 million upfront and commit to about $350 million in milestones for a trio of drugs that are in phase 2 and 3 testing in the West.
Recent Materials Providing Insight Into Healthcare & Related Industries

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