Week of August 27, 2018 | Vol. 7, Issue 34
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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.
China's Harbour BioMed, Kelun Ink A PD-L1 Deal Worth Up to $350M
Kelun stands to earn up to $350 million, but the partners did not specify how much the deal was worth upfront. 

Harbour BioMed licensed  a midphase PD-L1 antibody from Kelun Biotech for development and commercialization outside of Greater China. The antibody in question, A167, is currently in phase 1 and phase 2 trials in China for lymphoma and solid tumors. Harbour and Kelun will share data as they develop the asset as a monotherapy and in combination with other agents. "We are delighted to advance A167 globally and work closely with Kelun-Biotech to achieve its therapeutic potential," said Harbour CEO Jingsong Wang, M.D., Ph.D. "We plan to conduct A167-based combination trials globally by ourselves, including with innovative compounds we are developing, or in collaboration with our partners, to find better therapeutic options against a wide range of tumor types." The PD-L1 partnership is the second deal Harbour and Kelun struck this year, but is the former's first global development alliance. Under their first collaboration, the companies agreed to co-discover, co-develop and commercialize antibodies against innovative targets, based on Harbour's fully human antibody discovery platforms. 

C ontinue Reading at Fierce Biotech .
Swedish Healthcare Firm Capio To Sell French Business To Vivalto Sante
Capio plans to sell to Vivalto Sante in a deal worth up to $520 million in order to focus on its less capital intensive Nordic operations. 
Capio, which operates in Sweden, Norway, Denmark, France and Germany and had net sales of 15.3 billion crowns ($1.67 billion) last year, had said in June it was in talks on a possible divestment of its non-Nordic operations.  "The proposed transaction would accelerate the positioning towards the less capital intensive Nordic operations and build on Capio's leadership positions to further drive growth and shareholder value," Capio said in a statement. The consideration for the proposed deal would be an upfront enterprise value of 425 million euros plus an earn-out contingent on this year's financial performance, up to a total enterprise value of 455 million. The deal is subject to due diligence of Capio France by Vivalto, the approval of regulatory authorities and the approval of Capio's shareholders at an extraordinary general meeting, it said.

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
 17 transactions totaling $5,758 million
 Supplies, Equipment & Services
 12 transactions totaling $13 million
 Healthcare IT & Managed Care
 2 transactions
 Healthcare Facilities & Distributors
 8 transactions totaling $233 million

Pharma & Biotech
19 private placements totaling $333 million
Supplies, Equipment & Services
27 private placements totaling $390 million
Healthcare IT & Managed Care
9 private placements totaling $184 million
Healthcare Facilities & Distributors
4 private placement totaling $4 million

 Pharma & Biotech
 13 public offering totaling $616 million
 Supplies, Equipment & Services
 7 public offerings totaling $588 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 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.
August 23, 2018 -  Fierce Biotech
Bluebird bio has teamed up  with Gritstone Oncology to access another set of targets for its oncology cell therapies. The deal sees Bluebird pay $20 million upfront in return for 10 tumor-specific targets and T-cell receptors (TCRs).
August 23, 2018 -  Fierce Biotech
Canada's Altasciences has penned a new deal that sees it snap up the preclinical testing business of SNBL USA.  The buyout will add "comprehensive preclinical safety testing services" to Altasciences' current clinical and bioanalytical offerings. This sees the midsized CRO add to its services, now offering everything from lead candidate selection to proof of concept.

August 23, 2018 - BioSpace
Shares of Innovate Biopharmaceuticals  are up more than 7 percent in premarket trading after the company announced it signed an agreement  with privately-held Amarex Clinical Research to provide data management and biostatistics for its planned Phase III celiac disease trial.
August 22, 2018 -  BioSpace
Vancouver, British Columbia-based Sierra Oncology Acquired  momelotinib from Gilead Sciences  in a deal that could hit $198 million. Under the terms of the deal, Sierra is paying Gilead an upfront fee of $3 million. There are various potential milestone payments that could reach up to $195 million. The companies indicate that most of the milestones are commercial ones, rather than developmental milestones. Gilead will also be eligible for tiered royalty payments that range from the mid-teens to high-twenties.

August 22, 2018 -  BioSpace
Months after partnering with Sanofi  on infectious diseases, Germany-based Evotec h as formed another significant partnership  with Novo Nordisk.  The two companies will combine their forces to develop treatments for diabetes, nonalcoholic steatohepatitis (NASH) and other diseases. Evotec said it will apply its ligand-based drug discovery design program to select "safe and efficacious products" that can then be used to address diabetes and associated morbidities. When the preclinical candidates are selected, Danish drugmaker Novo Nordisk will use the German company's INDiGo platform to take those preclinical candidates into the clinic.

August 21, 2018 -  Fierce Pharma
A Chinese plasma producer is at the center of a bidding war as two investor groups vie for a company for which they see big upside because of China's strict rules for importing blood products.  A consortium of investors led by the company's former CEO David Gao has made a bid of $118 a share for China Biologic Products. The $3.9 billion, all-cash offer represents a premium of about 30% over the company's closing price on Aug. 16, the investors said in an announcement .  
August 20, 2018 -  Fierce Biotech
The FDA granted clearance to SPR Therapeutics' single- and dual-lead peripheral nerve stimulation devices as minimally invasive, non-opioid alternatives, implanted for up to 60 days for relieving acute and chronic pain, including postoperative and post-traumatic pain.  The Cleveland-based company's Sprint system includes the single-lead Endura and the industry's first dual-lead device, Extensa, which allows physicians to deliver therapy to two nerve targets in patients with broader injuries.
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
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

Bourne Partners
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