Week of August 20, 2018 | Vol. 7, Issue 33
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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.
Novo Nordisk Acquires iZiylo In Possible $800 Million-Plus Deal
Ziylo was spun out of the University of Bristol and is based at the Unit DX incubator in Bristol. 

Copenhagen, Denmark-based Novo Nordisk acquired  Bristol, UK-based Ziylo  in a deal that could exceed $800 million. Ziylo was spun out of the University of Bristol and is based at the Unit DX incubator in Bristol. The company has been developing a technology platform based on synthetic glucose binding molecules. As part of the deal, Novo Nordisk gains full rights to Ziylo's glucose binding molecule platform to develop glucose-responsive insulins, which is consistent with Novo Nordisk's focus on the diabetes market. It is believed that a glucose-responsive insulin might help eliminate the risks of low blood sugar, which is one of the primary risks associated with insulin treatment in diabetics. Before the acquisition, some of Ziylo's research activities were spun out of the company into a new company, Carbometrics. Carbometrics has inked a research collaboration with Novo Nordisk to help with optimization of the glucose binding molecules. Carbometrics licensed rights to develop non-therapeutic approaches of the glucose binding molecules with plans to focus on developing continuous glucose monitoring applications. Carbometrics will stay at the Unit DX location.

C ontinue Reading at Bio Space .
CareTech Agrees To Buy Rival Cambian For Up To $473 Million
CareTech said the proposed acquisition would expand its presence in education and behavioral health services for children.
British social care services firm CareTech Holdings Plc on Thursday agreed to buy rival Cambian Group Plc in a deal that could be valued up to 372 million pounds ($472.66 million), as it looks to bolster its child care business. CareTech, which had been in talks with Cambian since July, is offering cash-and-stock or all cash in the deal. The latest terms are lower than the initial offers. CareTech, which had been in talks with Cambian since July, is offering cash-and-stock or all cash in the deal. The latest terms are lower than the initial offers. The all-cash offer values Cambian at about 353 million pounds ($448.52 million). Under these terms, Cambian shareholders will receive 190 pence per share. However, the latest proposals were below CareTech's first bid in early July. At that time, the cash-and-stock offer valued Cambian at 220 pence per share, while the full cash offer was for 200 pence per share. CareTech said the proposed acquisition would expand its presence in education and behavioral health services for children.

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
 18 transactions totaling $1,071 million
 Supplies, Equipment & Services
 18 transactions totaling $203 million
 Healthcare IT & Managed Care
 2 transactionS
 Healthcare Facilities & Distributors
 29 transactions totaling $160 million

Pharma & Biotech
31 private placements totaling $1,327 million
Supplies, Equipment & Services
21 private placements totaling $124 million
Healthcare IT & Managed Care
10 private placements totaling $51 million
Healthcare Facilities & Distributors
1 private placement totaling $146 million

 Pharma & Biotech
 1 public offering totaling $50 million
 Supplies, Equipment & Services
 0 public offerings 
 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.
Trump Calls On Justice Department to Sue Opioid Companies  
August 16, 2018 -  The Wall Street Journal
President Trump on Thursday called on his attorney general to sue opioid companies, his latest move in an administration-wide effort to combat the opioid epidemic.  In a cabinet meeting Thursday at the White House, Mr. Trump asked Attorney General Jeff Sessions to bring federal lawsuits against certain companies supplying opioids to hospitals, rather than joining state lawsuits. He also charged Mr. Sessions with investigating fentanyl coming from China and Mexico, countries he said were "sending their garbage and killing our people."
Pfizer pays BioNTech $120M upfront to form mRNA flu vaccine pact  
August 16, 2018 -  Fierce Biotech
Pfizer has struck  a $425 million deal to work with BioNTech on the development of mRNA influenza vaccines. The Big Pharma is providing $120 million in upfront and near-term payments to enter into the R&D collaboration.

August 15, 2018 -  BioSpace
CPhI MEA (Middle East and Africa) launches next month as favourable market conditions are driving increased growth across the Middle East and North Africa (MENA) pharma market - ageing and gentrifying populations, increased healthcare spending, and a modernising supply chain are transforming prospects in the region.

August 15, 2018 -  BioSpace
Natera, Inc. (NASDAQ: NTRA ), a global leader in cell-free DNA testing, has partnered with Fox Chase Cancer Center , one of the leading cancer centers in the United States, to assess the company's Signatera  (Research-Use Only) customized circulating tumor DNA (ctDNA) assay for recurrence monitoring of kidney cancer.
August 15, 2018 -  BioSpace
Eli Global LLC announced that an affiliate has acquired 100 percent of Stratford Pharmaceuticals, LLC/DBA, Stratford Animal Health from its shareholders as of July 18, 2018. T he stock purchase of Stratford fits into Eli's strategy to enter the global animal health industry. Stratford currently provides a wide arrangement of dermatology products to over 10,000 veterinary hospitals in the US and 8 other countries. Stratford will continue to operate independently under the leadership of its Founder and CEO Brian Nugent out of its Oldsmar, FL corporate headquarters.

August 15, 2018 - Fierce Biotech
Spark Therapeutics' Luxturna made history as the first FDA-approved therapy that directly delivers a normal gene to take the place of a nonfunctional version to restore vision. Scientists are now using gene transfer in a different way to treat blinding diseases-by activating a type of dormant stem cells in the retina.
August 14, 2018 -  BioSpace
Evotec AG and Haplogen GmbH  have been long-term collaboration partners. The companies announced  that Haplogen will enter into a multi-year drug discovery and development deal with Bayer  AG to focus on pulmonary diseases like chronic obstructive pulmonary disease (COPD). Haplogen and Evotec have been collaborating since 2012, and as a result, developed a deep portfolio of programs for pulmonary indications. Their target-based approach will broaden under the Haplogen collaboration with Bayer.

August 14, 2018 -  Fierce Biotech
A triumvirate of aging-focused biotechs and researchers-the AI company Insilico Medicine, the portfolio-based startup Juvenescence and the nonprofit Buck Institute-have formed a new joint venture to develop small molecules for a novel target in a bid to extend life spans.

August 14, 2018 -  Reuters
Alphabet Inc plans to invest $375 million in Oscar Health, helping it expand to more markets and business segments, including Medicare Advantage in 2020, the health insurance start-up said on Tuesday. The investment comes months after Oscar Health raised $165 million in a funding round. Among the participants of that funding, CapitalG and Verily Life Sciences were financed by Alphabet.
August 13, 2018 -  Fierce Pharma
Novartis and Roche's Xolair has seen a raft of new competitors encroach on its territory over the last few years. But now, it's ready to carve out a new niche of its own.  The drug has nabbed  the FDA's breakthrough designation as a treatment for food allergies, setting it up for a quick trip to the regulatory finish line. The new FDA tag comes on the back of data generated through seven clinical trials over the past decade that evaluated Xolair against common food allergens, including peanuts, milk and eggs.

August 13, 2018 -  Fierce Pharma
After getting smallpox vaccine ACAM2000 from Sanofi and an anthrax treatment called raxibacumab from GlaxoSmithKline, Emergent BioSolutions is buying again, this time an entire company: PaxVax.
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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