Week of January 29, 2018 | Vol. 7, Issue 4
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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.
Celgene Confirms $9B Juno Buyout, Sees $3B Sales for JCAR017
Celgene has agreed to buy Juno Therapeutics in a deal that instantly makes it a big cheese in the emerging therapeutic category

The definitive terms of the deal - rumors of which hit the headlines last week - were laid out  this morning and revealed Celgene's lofty ambitions for Juno's pipeline, including what it expects could become $3 billion in sales for lead CAR-T JCAR017 assuming it gets FDA approval next year. Celgene already owns a little under 10% of Juno and has collaborated with the CAR-T specialist since 2015, when they signed a 10-year collaboration to develop treatments for cancer and immune diseases, but will now take complete control of JCAR017-in phase 1 for non-Hodgkin's lymphoma-as well as eight additional clinical and preclinical projects. The size of the deal shows the confidence in CAR-T as a new force in cancer immunotherapy, and the big turnaround at Juno which, not even a year ago, was forced to drop its lead leukemia CAR-T because of toxicity issues. Since then, safety concerns about the technology have abated with two CAR-Ts, Novartis' Kymriah (tisagenleucel) and Gilead/Kite's Yescarta (axicabtagene ciloleucel), approved for marketing last year.

C ontinue Reading at  Fierce Biotech.
Sanofi CEO Finally Scores with $11.6B Buyout of Biogen's Spinoff Bioverativ
The deal has Sanofi paying $105 per share in cash representing a 64% premium over [01.19.18] closing price of $64.11

Paris, France-based Sanofi has acquired Waltham, Massachusetts-based Bioverativ for about $11.6 billion.  In January 2017, Bioverativ spun off from Cambridge, Mass.-based Biogen's hemophilia unit. Bioverative has two drugs, Eloctate for Hemophilia A and Alprolix for Hemophilia B. In 2016, the two drugs created about $850 million in sales. John Carroll, writing for Endpoints News, notes, "The deal gives Sanofi a big stake in the fast-changing hemophilia market, where  Roche just scored with a new OK for Hemlibra-which clearly threatens Bioverativ's business-and a group of developers like  BioMarin and Spark/Pfizer are looking to disrupt the business with new gene therapies now in late-stage development."

C ontinue Reading at  BioSpace.

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
 15 transactions totaling $21,672 million 
 Supplies, Equipment & Services
 12 transactions totaling $263 million
 Healthcare IT & Managed Care
 3 transactions totaling $155 million
 Healthcare Facilities & Distributors
 10 transactions totaling $356 million

Pharma & Biotech
13 private placements totaling $222 million
Supplies, Equipment & Services
12 private placements totaling $70 million
Healthcare IT & Managed Care
5 private placements totaling $38 million
Healthcare Facilities & Distributors
0 private placements 

 Pharma & Biotech
 24 public offerings totaling $1,854 million
 Supplies, Equipment & Services
 4 public offerings totaling $64 million
 Healthcare IT & Managed Care
 0 public offerings
 Healthcare Facilities & Distributors
 2 public offerings totaling $529 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.
January 26, 2018 -  BioSpace
Concept Life Sciences,  the integrated drug discovery, development and analytical services and environmental consultancy company, today announced the completion of its acquisition by Spectris plc ('Spectris'), the productivity-enhancing instrumentation and controls company. Spectris has acquired the Concept Life Sciences Group of companies from Equistone Partners and company management, for a purchase consideration of £163 million, on a debt and cash-free basis.

January 25, 2018 -  Fierce Biotech
Biogen has added Karyopharm's KPT-350 to its pipeline. The big biotech is paying  $10 million upfront and committing to up to $207 million more in milestones to buy the IND-ready oral SINE compound and related, earlier-stage assets. Karyopharm has put together a preclinical data package for KPT-350 to show the drug and related compounds could treat a range of neurological and inflammatory conditions, including amyotrophic lateral sclerosis.
New York sketches out $500M plan to build a biotech hub
January 23, 2018 - Fierce Biotech
New York City is doubling down on its long-discussed, never-realized dream of building a biotech hub to rival South San Francisco and Boston. The latest iteration of the dream comes backed by a $500 million financing package and a goal to quadruple the amount of R&D space in the city.  City officials sketched out the funding that is available as part of a request for proposals about how to increase the amount of life science space on the rental market. 

Gilead's Kite to buy ex-Agensys R&D site for $135M
January 22, 2018 - Fierce Biotech
Gilead is set to buy an R&D facility for its CAR-T unit Kite Pharma. Costar reports  the big biotech has bid $135 million for a 160,000-square-foot site in Santa Monica, California, formerly occupied by Astellas' Agensys. The deal would be the highest price ever paid for a flex R&D site in Los Angeles County, in terms of both absolute value and on a per-square-foot basis, according to commercial real estate information company Costar. In return for the outlay, Kite will gain R&D, GMP and CMC spaces spread across a three-story building located a few minutes drive from its 180,000-square-foot headquarters. 

January 22, 2018 -  Reuters
NMC Health has made two acquisitions worth $207 million, the London-listed and United Arab Emirates-based healthcare provider said on Monday.  NMC acquired a 70 percent stake in UAE-based CosmeSurge for $170 million and an 80 percent stake in Saudi Arabia's Al Salam Medical Group for $37 million, the company said in a bourse filing.
Current Opportunities Available Through Bourne Partners
Project Longhorn 
Sell-side M&A
Southeastern US  |  CDMO  |  Approximately $85mm Revenue  |   Approximately $8mm EBITDA

Project Crimson 
Sell-side M&A
Southeastern US  |  CMO  |  Approximately --- Revenue  |   Approximately --- EBITDA

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

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

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