Week of April 2, 2018 | Vol. 7, Issue 13
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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
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INDUSTRY M&A SNAPSHOT
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.
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Bourne Partners Advises Accelovance Inc. On Sale To Linical Co.
The merger promotes a strong global presence across North America, Europe, and Asia Pacific
Accelovance, Inc. ("Accelovance"), a global contract research organization (CRO) focused on oncology, vaccines and general medicine, has signed a merger agreement with Linical, a leading, Asia-based CRO providing services in the areas of oncology and central nervous system to pharmaceutical companies worldwide.
Bourne Partners, a Charlotte-based financial advisory firm focused exclusively in healthcare and life sciences, served as the sole financial advisor to Accelovance throughout the transaction. Bourne Partners also facilitated the carve-out of Accelovance's SMO business, Optimal Research, in the fourth quarter of 2017. Banks Bourne, Chief Executive Officer of Bourne Partners, said, "We are pleased to play a part in the transpacific connection of two leading CROs that are now able to combine their resources and provide quality drug development services to biopharmaceutical companies across the globe. This transaction, as well as the timely carve-out of Optimal Research, serves as a testament to the strong company Steve Trevisan and team have built over the past 13 years."
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U.K. Biotech C4XD Leaps on $294M Addiction Drug Deal With Indivior
C4XD said the drug has potential in just about any form of addiction including tobacco, opioid analgesic and alcohol
Shares in U.K. biotech C4X Discovery almost doubled today after Reckitt Benkiser spinout Indivior agreed to a $294 million deal for a drug candidate to treat addiction.
The deal with Indivior is something of a coup for CX4D. Its new partner is a big player in opioid addiction with its well-established Suboxone (buprenorphine and naloxone) film product-which has a market share above 50%-and has just bagged U.S. approval for new once-monthly injectable Sublocade (buprenorphine). C4XD said that the neurotransmitter orexin-and specifically the OX1 receptor-has been studied for its role in the craving and reward pathways in the brain for some time. However, progress in developing drugs that can interact with it and reduce cravings has been held back by a lack of selectivity among drug candidates. The company has been working with German biotech Evotec since 2015 on the orexin project, focusing on developing drugs for addiction that are highly specific to OX1 and with minimal off-target effects on OX2, which seems to be involved in wakefulness and is also being targeted in the treatment of insomnia.
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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.
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Pharma & Biotech
15 transactions totaling $13,148 million
Supplies, Equipment & Services
33 transactions totaling $223 million
Healthcare IT & Managed Care
6 transactions totaling $15 million
Healthcare Facilities & Distributors
14 transactions totaling $100 million
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Pharma & Biotech
20 private placements totaling $555 million
Supplies, Equipment & Services
28 private placements totaling $190 million
Healthcare IT & Managed Care
7 private placements totaling $47 million
Healthcare Facilities & Distributors
3 private placements totaling $210 million
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Pharma & Biotech
23 public offerings totaling $976 million
Supplies, Equipment & Services
8 public offerings totaling $334 million
Healthcare IT & Managed Care
3 public offerings totaling $13 million
Healthcare Facilities & Distributors
1 public offering
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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.
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RECENT INDUSTRY HEADLINES
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.
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March 29, 2018 -
Fierce Biotech
Drug discovery and early clinical development firm Forma Therapeutics, which counts Celgene and Boehringer Ingelheim among its collaborators, has tapped Arpeggio Biosciences' capabilities in identifying drug candidates' mechanism of action.
The partnership utilizes Arpeggio's technology to identify the primary results of a drug's impact on biological and genetic activity, to help Forma better understand the translational utility of its potential drug candidates.
Hospital Giants Halt Merger Talks
March 28, 2018 -
The Wall Street Journal
Two major hospital systems have halted talks about a possible merger
, shelving for now the prospect of a combination that would have created the nation's largest owner of hospitals, according to people familiar with the discussions. Ascension, the largest U.S. nonprofit hospital system, and Providence St. Joseph Health, also a major nonprofit hospital owner, put talks on hold to restructure as more medical care moves outside of hospitals, putting pressure on their core operations, according to the people. A big, complex merger would split attention between restructuring and combining the two giants, the people said.
Oscar Health raises $165 million in new funding round
March 27, 2018 -
Reuters
Health insurance start-up Oscar Health said on Tuesday it raised $165 million in a new round of funding led by San Francisco venture capital firm Founders Fund. In a blog post on its website, Oscar Health said other investors included 8VC, Verily Life Sciences, Fidelity, General Catalyst, Capital G, Khosla Ventures, and Thrive Capital.
The company said the new funding along with its partnerships with industry heavyweights like Cleveland Clinic, Humana and AXA will aid it in providing affordable health care to consumers.
Will Pfizer spin off consumer health now that its prospective buyers have balked?
March 26, 2018 -
Fierce Pharma
Pfizer's top two bidders may have both walked away from a consumer health deal last week, but that doesn't mean the pharma giant doesn't still have options.
On the contrary, it's got one path left to unloading the unit, and it's one the company's plenty familiar with: a spinoff. A Bloomberg notes, a spinoff would not only spare Pfizer the taxes it would have had to pay on sale proceeds, but spinning off the unit could take some debt off Pfizer's hands, too. And the company, which executed a successful spinoff of animal health unit Zoetis in 2013, knows what it's doing in that department.
Surface Oncology, Mereo BioPharma gun for $156M Nasdaq IPOs
March 26, 2018 - Fierce Biotech
A quiet immuno-oncology startup that has just began clinical tests and a rare disease biotech using Big Pharma meds are both looking to raise funds on the U.S. IPO market.
First up is Cambridge, Massachusetts-based Surface, a former Fierce 15 winner, which emerged in 2015 with $35 million from a syndicate featuring Atlas Venture, Amgen Ventures, Lilly Ventures, F-Prime, New Enterprise Associates and Novartis.
March 26, 2018 -
Reuters
Italian hearing aid maker Amplifon
is targeting acquisitions in Germany, France and Canada and plans to enter the Chinese market by the end of the year with one or two joint-ventures, its chief executive said on Monday. Amplifon, which controls around 10 percent of the fragmented global market, faces challenges from smaller competitors such as Switzerland-based Sonova Holding and William Demant of Denmark.
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PARTNERING AND M&A OPPORTUNITIES
Current Opportunities Available Through Bourne Partners
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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 Limestone
Asset Divestiture
Southeastern US | ANDAs and Manufacturing Equipment | ANDA Revenue disclosed with NDA
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UPCOMING EVENTS
An Overview of Events Hosted or Attended by the Bourne Partners Team
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April 30 - May 6, 2018
| Quail Hollow Club |
Charlotte, NC
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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.
Sincerely,
The Bourne Partners Team
Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407
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