Week of November 6, 2017 | Vol. 6, Issue 43
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines

Complete Transaction Tables
Full Trading Comp Analysis

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Xan Smith

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 Snags Blockbuster Hopeful Lutathera in $3.9B Deal for Advanced Accelerator
The Swiss pharma giant has agreed to shell out $41 per share for AAA

Last month, word on the street was that Novartis was in talks to buy Advanced Accelerator Applications, a French company that makes radiotherapies for cancer patients. Turns out, that scuttlebutt was true.  AAA's current products are radioactive tracers used in diagnostic scans. That in itself fits into Novartis' burgeoning cancer business. But AAA also has a pipeline product that's an even better fit: Lutathera, a treatment for neuroendocrine tumors (NETs) that's based on the rare earth metal leutetium. Novartis sells two therapies for that type of tumor-Afinitor and Sandostatin-and Lutathera would be a quick addition to that portfolio. It won European approval last month, and is set for an FDA decision in January. All three medications would go hand-in-hand with AAA's NET diagnostic agents, NetSpot and Somakit. "Novartis has a strong legacy in the development and commercialization of medicines for neuroendocrine tumours," Bruno Strigini, head of Novartis Oncology, said in a statement. "With Lutathera we can build on this legacy."
C ontinue Reading at  Fierce Pharma.
Chinese Firms Among Bidders for Australia's 
I-MED, Valued at over $765 million
Tonghua Golden-Horse Pharmaceutical Industry and Golden Meditech Holdings are likely to participate in a second round of bidding

The Ontario Teachers' Pension Plan, Canada's third-largest public pension plan, and London-based private equity firm Permira, are also expected to submit separate bids, two of the people said.  Chinese interest in Australia's biggest X-ray provider comes as Beijing strives to overhaul China's healthcare sector and boost its competitiveness in overseas markets, with acquisitions one of the key planks for that drive.  With nearly 200 clinics cross Australia, I-MED has 18 percent of the nation's diagnostic imaging services market, which is partially subsidized by the government, according to a September report by researcher IBISWorld.  I-MED's owner, Swedish private equity firm EQT Holdings, has hired Morgan Stanley and Rothschild to manage the sale process, the people said, who declined to be identified as the deal process is not public.

Continue 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 $4,726 million 
 Supplies, Equipment & Services
 23 transactions totaling $729 million
 Healthcare IT & Managed Care
 2 transactions totaling $0
 Healthcare Facilities & Distributors
 9 transactions totaling $481 million

Pharma & Biotech
16 private placements totaling $296 million
Supplies, Equipment & Services
14 private placements totaling $65 million
Healthcare IT & Managed Care
8 private placements totaling $84 million
Healthcare Facilities & Distributors
3 private placements totaling $0

 Pharma & Biotech
 16 public offering totaling $4,462 million
 Supplies, Equipment & Services
 7 public offerings totaling $399 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 subsectors 

For a complete trading comp analysis (including the individual equities that comprise the subsectors), 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.
Republican tax reforms could hit rare-disease research 
November 3, 2017 - Fierce Biotech
A tax credit that allows biopharma companies to recoup some of the cost of developing drugs for rare diseases could be abolished if a Republican tax reform bill goes through.  As it stands, companies can claim a tax credit of 50% of the costs for clinical testing required by the FDA for drugs that treat rare diseases, a policy that has been in place ever since the 1980s when the Orphan Drug Act was enacted to encourage research into new treatments for diseases affecting fewer than 200,000 people.

Torrent Pharma Coughs Up $558M for Unichem's India Biz 
November 3, 2017 -  BioSpace
Torrent Pharmaceuticals said on Friday it would buy more than 120 brands of  Unichem Laboratories in India and Nepal and its manufacturing plant at Sikkim. The deal, valued at 36 billion rupees ($558 million), will be funded by internal accruals and bank borrowing, the drugmaker said in a stock exchange filing (bit.ly/2z9LWer). The acquisition is expected to close by the end of 2017.

Biotechs Salivate as Bay Area VC Firm Banks $419M for Early Life Science R&D 
November 1, 2017 -  BioSpace
The Frazier Life Sciences IX is the second dedicated life sciences fund the company has developed. In 26 years, the company has raised about $3.4 billion in capital. The Frazier team invests primarily in therapeutics-focused companies developing and commercializing innovative biopharmaceuticals that address important unmet medical needs. In its announcement, Frazier said its new Frazier Life Sciences IX fund will use two-thirds of its funding in Seed and Series A rounds.  A number of the investments are expected to come from the team's continued company creation efforts.

Aviragen, Vaxart merge to develop oral vaccines for influenza, norovirus and RSV 
October 31, 2017 -  Fierce Pharma
For some antigens like norovirus and RSV, there are no approved vaccines. For others, like the seasonal flu, immunization rates are often far from ideal. Now, a new company, the product of a merger between Aviragen Therapeutics and Vaxart, aims to develop oral vaccines against these diseases.  After the transaction, which executives believe will close early next year, the combined company will take Vaxart's name. Vaxart CEO Walter Latour will lead the combined company and shares will trade on Nasdaq under the proposed ticker "VXRT."

Aster DM Healthcare to raise $150 million in minority listing on India's BSE
October 30, 2017 - Reuters
United Arab Emirates-based Aster DM Healthcare expects to raise around $150 million from listing a 10 percent stake on the Bombay Stock Exchange by March 2018, its managing director said on Monday. The company filed a prospectus for an initial public offer (IPO) of shares in India in June last year. Managing Director Azad Moopen told Reuters in Dubai that the company would list the minority stake on Asia's oldest exchange before the end of the current financial year in March.

October 30, 2017 - Fierce Biotech
Patients with type 1 diabetes know the routine all too well: the frequent skin pricks to test their blood, the need for insulin injections or a mechanical pump to prevent dangerous spikes or drops in blood sugar. Scientists at University of North Carolina and NC State are developing what they hope will be a less painful, more convenient alternative: "smart" artificial beta cells that can detect the need for insulin and secrete it automatically.  In type 1 diabetes and some cases of the type 2 form of the disease, the loss or malfunctioning of beta cells in the pancreas that secrete insulin is the culprit. So the researchers made versions of the cells that can be inserted under the skin and replaced every few days. In mouse models of diabetes, a single injection of the cells normalized  blood sugar and kept levels steady for up to five days, they reported in the journal Nature Chemical Biology.

An Overview of Events Hosted or Attended by the Bourne Partners Team
36th Annual J.P.Morgan Healthcare Conference
January 8-11, 2018 | San Francisco, CA
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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