Week of March 26, 2018 | Vol. 7, Issue 12
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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.
Prothena, Celgene Ink $2B+ R&D Pact 
Celgene is handing over $100 million up front and making a $50 million equity investment in Prothena

Celgene has been making deals left and right lately, kicking off the year with its $1.1 billion acquisition of Impact Biomedicines and plunking down $9.9 billion to get its hands on Juno and its CAR-T stable. Its latest project? An R&D collaboration with Prothena to develop new drugs for neurodegenerative diseases. The partnership centers on a trio of proteins implicated in the development of multiple neuro diseases: tau, TDP-43 and an undisclosed target, Prothena said. Tau, a well-known marker of Alzheimer's disease, also plays a role in progressive supranuclear palsy, frontotemporal dementia (FTD), and chronic traumatic encephalopathy. TDP-43 is linked to amyotrophic lateral sclerosis and the most common subtype of FTD, behavioral variant FTD. Prothena has identified antibodies that target tau and TDP-43, the company said. It hopes to prevent misfolded tau from binding to cells and to block the transmission of misfolded tau and TDP-43 from cell to cell, thereby staving off their toxic effects.

C ontinue Reading at  Fierce Biotech.

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 $219 million 
 Supplies, Equipment & Services
 21 transactions totaling $71,382 million
 Healthcare IT & Managed Care
 8 transactions totaling $19 million
 Healthcare Facilities & Distributors
 0 transactions 

Pharma & Biotech
0 private placements 
Supplies, Equipment & Services
2 private placements totaling $2 million
Healthcare IT & Managed Care
0 private placements 
Healthcare Facilities & Distributors
0 private placements 

 Pharma & Biotech
 92 public offerings totaling $3,598 million
 Supplies, Equipment & Services
 12 public offerings totaling $1,774 million
 Healthcare IT & Managed Care
 1 public offering
 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.
March 22, 2018 -  The Wall Street Journal
Health-care companies are tapping executives from drugmakers as they seek out finance and other critical skills found outside their core business to help navigate a recent wave of consolidation.  A flurry of mergers is transforming -care as patients increasingly get their medical services outside of hospitals, in smaller venues including drugstores. CVS Corp. is acquiring Aetna Inc. for $79 billion. United Group Inc. announced plans for the $4.9 billion purchase of DaVita Inc.'s doctor group in December. And last month, Walgreens Boots Alliance Inc. made a takeover approach to drug distributor AmerisourceBergen Corp. 

March 23, 2018 -  Fierce Biotech
A monthlong study of dimethandrolone undecanoate (DMAU), an oral contraceptive for men, presented at the Endocrine Society's annual meeting showed that the drug was safe and effective when taken daily. But the brevity of the study, along with a couple of side effects, mean that more work is needed before men can have their own birth control pill.

March 22, 2018 -  Fierce Biotech
Two of the biggest obstacles to surviving cancer after surgery to remove the primary tumor are that the tumors tend to come back, and worse, they spawn distant metastases that are difficult to treat. Scientists at Dana-Farber Cancer Institute and Harvard have invented an immunotherapy "gel" that can be placed at the tumor site during surgery that's designed to combat both problems.

Sun, pivoting to specialty pharma, wins psoriasis nod for Ilumya. Can it hang with J&J?
March 22, 2018 - Fierce Pharma
Sun Pharma's $80 million psoriasis licensing deal  with Merck & Co. just paid off with an FDA approval. But now, another challenge begins: The new med will go up against established psoriasis player Johnson & Johnson. The FDA has officially green-lighted the Indian drugmaker's Ilumya, an IL-23 inhibitor, to treat the skin plaque disease, Sun said Wednesday. It's "sort of a flagship product" for the company, which has only recently pivoted its focus to spec pharma after many years on the generics scene, Chief Medical Officer Simon Lowry said in an interview.
Beacon Capital's incubator boosts New York City's burgeoning biotech scene
March 21, 2018 -  Fierce Biotech
Beacon Capital unveiled a new biotech incubator scheme in New York City. Called Beacon Pharma, it will offer seed funding and office, lab and manufacturing space in a city aspiring become the next big biotech hub.  The incubator has $30 million to $50 million up for grabs, but won't limit it to its handpicked startups-it will also be invested in other companies in the New York and New Jersey area. The investments will range from $30,000 to $1 million per startup. Beacon Pharma will also provide 50,000 square feet of office and lab space in New York and New Jersey, Beacon Capital said. 

Anti-aging outfit Unity bags $55M and looks to the clinic
March 20, 2018 -  Fierce Biotech
Having refilled its coffers with a $55 million series C round, Unity Biotechnologies is preparing to bring its drug for musculoskeletal disease into clinical trials.  The company, whose mission is to extend the human "healthspan," is working on drugs to halt, delay or reverse age-related diseases. While the science behind such approaches is murky at best, the anti-aging biotech is cleaning up-it picked up $116 million in its previous fundraising, from the likes of Arch Venture Partners, Partner Fund Management and Venrock, as well as WuXi, Mayo Clinic Ventures, and Bezos Expeditions, which participated in its startup round. 

Novartis blazes Big Pharma trail, striking deal with Canadian company to distribute medical marijuana products
March 19, 2018 - Fierce Pharma
In what may be the first foray by Big Pharma into the sale of medical marijuana products, Novartis has struck a deal with a Canadian company that sells medical cannabis products not only in its home country but also in Europe.  Nanaimo, British Columbia-based Tilray announced today that it has a binding agreement with Sandoz Canada to be its exclusive supplier of "non-smokable/non-combustible medical cannabis products."

March 19, 2018 -  Fierce Biotech
More than 65,000 Americans have been victims of influenza A H3N2 this season, according the Centers for Disease Control. And this particular strain of the flu virus has proven to be remarkably resistant to vaccination, because it frequently mutates after the vaccine has been formulated. Could antiviral treatments help tamp down the virus after infection?

Alzheon files for $81M IPO to fund phase 3 Alzheimer's trialdaptimmune's GSK-partnered T cells triggers responses in solid tumor patients
March 19, 2018 -  Fierce Biotech
Alzheon is looking to tap public investors for $81 million to take a beta amyloid Alzheimer's drug into phase 3. The Nasdaq IPO  will equip Alzheon to take its reworking of a once-failed drug into a pivotal clinical trial in a subset of Alzheimer's patients later this year. Framingham, Massachusetts-based Alzheon is focused on the development of a molecule designed to inhibit the formation of the beta amyloid plaques that characterize Alzheimer's and have been the focus of R&D in the field. When Alzheon acquired the rights to the program in 2013, it had been consigned to the scrapheap after failing in phase 3 and dragging then-owner Neurochem down with it. 
Current Opportunities Available Through Bourne Partners
Project Longhorn 
Sell-side M&A
Southeastern US  |  CDMO  |  Approximately $85mm Revenue  |   Approximately $8mm EBITDA

Project Ocean 
Sell-side M&A
Northeastern US  |  CDMO  |  Approximately $6mm Revenue  |   EBITDA disclosed with NDA

Project Magnolia 
Sell-side M&A
Mid-Atlantic US  |  CRO  |  Approximately $25mm Revenue  |   EBITDA disclosed with NDA

Project Limestone
Asset Divestiture
Southeastern US  |  ANDAs and Manufacturing Equipment  |  ANDA Revenue disclosed with NDA
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

Bourne Partners
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