Week of April 23, 2018 | Vol. 7, Issue 16
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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.
Bourne Partners Advises Accelovance, Inc. On Sale To Linical Co. 
The merger promotes a robust international presence, with the combined companies' platform reaching through North America, Europe and Asia Pacific.

Accelovance, Inc. ("Accelovance"), a global contract research organization (CRO) focused on oncology, vaccines and general medicine, has been acquired by 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. Stephen Trevisan, President and Chief Executive Officer of Accelovance, said, "Bourne Partners' experienced execution team, deep domain knowledge and extensive strategic and PE relationships were critical in maximizing the value of the sale of Accelovance. I highly recommend them as a sell-side advisor in the Clinical CRO space."

C ontinue Reading at Business Wire .
Merck KGaA, Not Pfizer, Lands Consumer Health Deal With P&G Worth $4.2B
Turns out Proctor & Gamble didn't want Pfizer's consumer health unit after all. But it did want Merck KGaA's. 

Thursday, P&G said  the two companies had inked a pact that will send Merck's portfolio from Germany to Cincinnati, Ohio, for €3.4 billion ($4.21 billion). The pair expects to close the deal during the 2018-2019 fiscal year, it said. The selloff agreement wraps up a sale process the Darmstadt-based drugmaker embarked on last September, pointing to "increasing internal constraints to fund" its consumer health business. And it's "a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company," CEO Stefan Oschmann said in a Thursday statement, adding, "With P&G we have found a strong, highly recognized player who has the necessary scale to successfully drive the business going forward." P&G, meanwhile, will pick up a $1 billion-by-sales business that's grown 6% over the past two years and includes more than 900 products across 44 countries. And it'll also fill a void left by a healthcare joint venture between P&G and Teva, which is set to end July 1.

C ontinue Reading at Fierce Pharma .

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
 22 transactions totaling $83,059 million 
 Supplies, Equipment & Services
 25 transactions totaling $313 million
 Healthcare IT & Managed Care
 5 transactions 
 Healthcare Facilities & Distributors
 6 transactions 

Pharma & Biotech
16 private placements totaling $88 million
Supplies, Equipment & Services
20 private placements totaling $137 million
Healthcare IT & Managed Care
9 private placements totaling $37 million
Healthcare Facilities & Distributors
2 private placements totaling $27 million

 Pharma & Biotech
 19 public offerings totaling $1,101 million
 Supplies, Equipment & Services
 4 public offerings totaling $104 million
 Healthcare IT & Managed Care
 0 public offerings 
 Healthcare Facilities & Distributors
 1 public offering totaling $1 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.

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.
April 20, 2018 -  Fierce Biotech
Biogen is paying  $1 billion to enter into a discovery-stage R&D pact with Ionis Pharmaceuticals. The deal gives Biogen a chance to pick up a series of neurological antisense drugs identified by Ionis. Management at Biogen, facing pressure to re-energize the business, has paid a hefty sum to secure access to the fruits of Ionis' drug discovery work. The deal features $1 billion in upfront cash. Biogen is paying a $375 million fee and splurging another $625 million on Ionis' stock at a weighty premium.

April 20, 2018 -  Bio Space
It's no secret that China has become an ever-increasing important component for drug development.  Not only is the country seen as a lucrative market for drugs, particularly oncology medicines, entities within the country are making heavy investments in the global biotech industry. On Thursday CNBC reported that China had a 2017 pharmaceutical market valued at $122.6 billion,  according to data from health-care information company IQVIA (formerly QuintilesIMS). Those numbers are expected to increase significantly. IQVIA data shows China's pharmaceutical market is expected to grow to between $145 billion and $175 billion by 2022.

April 19, 2018 -  Fierce Pharma
Three of Takeda's anticipated Shire buyout bids have already been rejected-and now, the Japanese drugmaker might just lose out to a competing bidder. Allergan, for instance, is already in talks for a buy.  Just as the Japanese drugmaker unveiled its latest offer for Shire, an equity-heavy $61 billion bid that the buyout target immediately rejected, reports hit that Allergan had shouldered its way into the contest.

April 19, 2018 -  Fierce Biotech
Researchers have been developing CRISPR gene editing as a potential therapeutic tool for years, but its most immediate use may be a less obvious one: cancer diagnostics. In what they say is a first for the gene-editing technology, researchers from Christiana Care Health System used CRISPR to edit DNA outside the cell, laying the groundwork for a diagnostic test that can replicate DNA mutations in a patient's tumor and help physicians identify the most appropriate treatment. 

The Growing Legal Battles Against Opioid Manufacturers
April 18, 2018 -  Bio Space
Utah's Salt Lake County is the latest governing body to enter the legal battle  against opioid manufacturers, distributors and prescribers. Governments are seeking financial restitution for the funds they have spent on battling addiction to prescription opioid medications. Last week the Utah county filed a lawsuit against opioid manufacturers over marketing practices that have been called misleading and have been alleged to lead to high levels of addiction. In its lawsuit Salt Lake County called out manufacturers Purdue Pharmaceuticals, Endo Pharmaceuticals, Allergan and Watson Pharmaceuticals. 

Advent, near deal to buy Sanofi's Zentiva, lays out big goals for generics business
April 17, 2018 -  Fierce Pharma
The sources were right: Only one day after numerous media reports stated Sanofi was nearing a deal with Advent International to sell its copycat drug unit Zentiva, the companies acknowledged that they are in exclusive negotiations. And Advent said it has big plans for the European generics business. In a proposed €1.9 billion ($2.35 billion) deal, Sanofi would offload its Zentiva unit to buyout firm Advent International. The private equity outfit said it will invest in the company and create a "new, independent European generics leader," according to a release. 
Johnson & Johnson scraps phase 3 antibiotic program acquired in $30B Actelion takeover
April 17, 2018 - Fierce Biotech
Johnson & Johnson has halted development of cadazolid in clostridium difficile-associated diarrhea. The antibiotic was one of two experimental assets J&J acquired in its $30 billion takeover of Actelion last year.  J&J struck the big-ticket buyout to establish a new business franchise built around Actelion's stable of pulmonary arterial hypertension drugs. But at the same time, it also picked up rights to two phase 3 assets, cadazolid and multiple sclerosis drug ponesimod. Now, 10 months after closing the deal, one of the assets has fallen by the wayside.

April 17, 2018 -  Fierce Biotech
Johnson & Johnson has bought into  Bristol-Myers Squibb's Factor XIa inhibitor program. The deal gives J&J a stake in the development and potential commercialization of anticoagulants including phase 2-ready secondary stroke candidate BMS-986177. J&J is paying an upfront fee and committing to milestones and royalties of undisclosed size to get its claws into the candidate. That done, Bristol-Myers and J&J will both contribute to the development and commercialization of oral thrombolytic agent BMS-986177, splitting any costs and profits they rack up along the way. The agreement also covers other FXIa inhibitors.

April 17, 2018 -  Reuters
Cash-strapped Fortis Healthcare Ltd said Fosun International Ltd  has offered to invest up to $350 million, making the Chinese firm the fourth suitor aiming to tap soaring demand for private healthcare in India. The unsolicited non-binding offer follows one other offer of investment from local businesses and separate takeover bids from unlisted Manipal Health Enterprises Ltd and Malaysia's IHH Healthcare Bhd.
Current Opportunities Available Through Bourne Partners
Project Limestone
Asset Divestiture
Southeastern US | ANDAs and Manufacturing Equipment | ANDA Revenue disclosed with NDA

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

Project Barracuda
Asset Divestiture
Midwestern US | Consumer Health/OTC | Approximately $31.5mm Revenue | Approximately $12mm EBITDA

Project Longhorn 
Sell-side M&A
Southeastern US | CDMO | Approximately $85mm Revenue | Approximately $8mm EBITDA
Bourne Partners Reports Providing Insight Into Healthcare & Related Industries
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
550 South Caldwell Street
Suite 900
Charlotte, NC 28202