Week of December 10, 2018 | Vol. 7, Issue 49
In This Issue
Market Reports

Quick Links

Contact Information
Managing Director
Business Development
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 click on the chart above to download complete transaction tables broken out by industry subsectors.
Despite Opposition, Takeda Shareholders Approve Shire Acquisition for $58 Billion
Although it was probably not in serious peril, shareholders of Japan's Takeda Pharmaceutical voted to approve the acquisition of Dublin's Shire. The deal is currently valued at $58 billion.

The deal came together in May 2018, with Takeda's final official bid coming in at around $62.2 billion. Takeda made five public bids for the company. The deal came in at about $30.33 per share in cash and 0.839 shares of Takeda stock. Currency fluctuations and Takeda's share price drop brought the value down to about $58 billion. Takeda is gaining both Shire's portfolio, heavy on rare disease drugs, and a stronger U.S. market presence. It's also picking up a significant amount of debt, which pushes the deal closer to a total of $80 billion. And it is largely this debt that caused some problems leading up to today's approval. As part of the final deal, Takeda has secured $30.9 billion in bank loans. A fairly small but vocal opposition group of Takeda shareholders calling itself "Think About Takeda's Bright Future" or TTBF, made several attempts to scuttle the deal. At the June annual meeting, the group, which at the time had about 130 shareholders in it, expressed their opposition and advanced a proposal that would require advance shareholder approval be required for large acquisitions. The proposal, however, only received about 10 percent of votes in favor, failing to pick up wider opposition support. And in September, the group gained a high-profile supporter, Kazu Takeda, a member of the Takeda family. He told  The Times, "Hasty decisions on big deals should be avoided.

C ontinue Reading at BioSpace .
GlaxoSmithKline buys Tesaro in $5.1B takeover 
GlaxoSmithKline will acquire Tesaro, a Massachusetts-based oncology firm, for $5.1 billion, the two companies announced Monday.

With the deal, GlaxoSmithKline's CEO Emma Walmsley has led the pharmaceutical giant into the hyper-competitive oncology field. By taking on Tesaro's Zejula (niraparib) as its own asset, Glaxo will go toe-to-toe with AstraZeneca and Clovis Oncology in the space.Tesaro wasn't the only multi-billion dollar move GSK announced on a busy Monday. The company also said it reached a deal worth roughly $4 billion with Unilever to divest its healthcare nutrition brands under GSK Consumer Healthcare, which includes the malted-milk drink Horlicks. That deal is expected to complete by the end of next year, the companies said.Walmsley said proceeds from the Unilever deal will support other company priorities, namely investing in the pharmaceutical business, which GSK is prominently doing by buying Tesaro. "The acquisition of Tesaro will strengthen our pharmaceuticals business by accelerating the build of our oncology pipeline and commercial footprint, along with providing access to new scientific capabilities," she said in a statement Monday.  Zejula was approved in the U.S. in March 2017 to treat recurrent ovarian cancer patients who respond to platinum-based chemotherapy. But the therapy has had slower uptake than some expected, leading to Tesaro being shortlisted as a potential takeover target. Zejula posted $166 million in sales through the first nine months of 2018, while AstraZeneca's Lynparza (olaparib) had distanced itself with consistent quarterly growth. 

C ontinue Reading at BioPharma Dive .
An Overview of Transactions Within Market Subsegments
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. Total transaction values are provided in USD millions.

Pharma & Biotech
22 transactions totaling $8,867 million
Supplies, Equipment & Services
33 transactions totaling $374 million
Healthcare IT & Managed Care
5 transactions totaling $34 million 
Healthcare Facilities & Distributors
12 transactions totaling $30 million

Pharma & Biotech
27 private placements totaling $733 million
Supplies, Equipment & Services
15 private placements totaling $113 million
Healthcare IT & Managed Care
8 private placements totaling $59 million
Healthcare Facilities & Distributors
1 private placements totaling $7 million

Pharma & Biotech
17 public offering totaling $765 million
Supplies, Equipment & Services
6 public offerings totaling $38 million
Healthcare IT & Managed Care
1 public offering 
Healthcare Facilities & Distributors
public offering totaling $100 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.

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.
December 7, 2018 - BioSpace
Shares of Mallinckrodt Pharmaceuticals are down nearly 2 percent in morning trading after the company announced it will spin off a new company that includes its specialty generics business to shareholders by the second half of 2019.

Brii Biosciences ramps up with VBI Vaccines partnership, new R&D headquarters
December 6, 2018 - Fierce Biotech
Brii Biosciences, a biotech that aims to improve public health in China, launched earlier this year with $260 million in committed capital and a trio of partnerships. Now, seven months down the line, Brii is expanding its collaboration with Vir Biotechnologies, inking a new hepatitis deal with VBI Vaccines and entering a public-private partnership with WuXi Biologics and Tsinghua University.

December 6, 2018 - Fierce Biotech
Medtronic has agreed to pay nearly $51 million to settle claims against two of its more recent acquisitions-Covidien and ev3-related to the promotion of a medical device for unapproved use, as well as an alleged system of kickbacks for another device.

December 5, 2018 - Fierce Pharma
Sanofi plans to take asthma research where it has not gone before. A new partnership with Mount Sinai Health System and advanced analytics firm Sema4 will create a digital asthma laboratory where sophisticated digital technology can be applied to and used to gather new forms of real-world and clinical data for analysis and predictive action.

December 5, 2018 - Fierce Biotech
Roche and Icagen have inked a licensing and collaboration deal around ion channel modulators for neurological disorders. The duo did not disclose Roche's upfront payment or research funding, but Icagen stands to receive up to $274 million in development and commercial milestones. 

J&J picks up cancer antibody from Argenx in $500M deal
December 4, 2018 - BioPharma Dive
Johnson & Johnson's Janssen and Argenx agreed to a deal potentially worth a total of $1.8 billion to develop the smaller biotech's CD70 antibody cusatuzumab in acute myeloid leukemia, myelodysplastic syndromes and other blood cancers, the companies said Monday.

December 4, 2018 - Fierce Biotech
French-Canadian biotech Domain Therapeutics has another big pharma partner, signing a deal with Germany's Boehringer Ingelheim to develop new drugs for central nervous system (CNS) disorders.
Domain says (PDF) it will work with Boehringer to apply its G protein-coupled receptor (GPCR) capabilities to multiple targets in the collaboration, but for now those are being kept under wraps, along with the financial terms of the deal.
GSK wraps up promised Horlicks sell-off in £3.1B deal with Unilever
December 3, 2018 - Fierce Pharma
For the deal, worth about $3.94 billion, the companies will merge GSK Consumer Healthcare Limited with Unilever's Indian subsidiary. GlaxoSmithKline will own part of the combined company, but plans to sell down that stake in tranches over time. 

Recent Materials Providing Insight Into Healthcare & Related Industries

  www.bourne-partners.com    |    careers@bourne-partners.com    |   +1  704.552.8407