Week of January 22, 2018 | Vol. 7, Issue 3
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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.
J&J Attracts Chinese Interest for Diabetes Business in Potential $3-4 Billion Deal
Chinese bidders are circling a diabetes care business owned by the world's largest healthcare company Johnson & Johnson

New Brunswick, N.J.-based J&J said in January last year it was evaluating options for its diabetes care companies, specifically LifeScan Inc, Animas Corp, and Calibra Medical Inc. One option was a sale of the business, it said.  Chinese interest in the J&J unit comes as the market for diabetes care in China is expected to grow rapidly. Almost one in three of the world's diabetes sufferers lives in China, according to World Health Organization estimates. Among the potential bidders is a consortium being formed by Shenzhen-listed Sinocare Inc, which develops and manufactures blood sugar monitoring systems, and China Jianyin Investment Ltd (JIC), a unit of sovereign wealth fund China Investment Corp. The group has hired an advisor to work on a bid, according to two sources.

C ontinue Reading at  Reuters.
Up-and-Coming Chinese Biotech BeiGene Gets $750M Worth of Love from U.S. Investors
BeiGene intends to use proceeds from the offering for working capital and general corporate purposes, including research and development activities.

BeiGene (NASDAQ:BGNE), a commercial stage bio-pharmaceutical  company focused on developing and commercializing innovative molecularly targeted and immuno-oncology drugs for the treatment of cancer, today announced the pricing of its follow-on public offering of 7,425,750 American Depositary Shares (ADSs), each representing 13 of its ordinary shares, par value $0.0001 per share, at a price to the public of $101.00 per ADS. The gross proceeds to BeiGene from the offering, before deducting underwriting discounts and commissions and other offering expenses, are expected to be approximately $750 million. In addition, BeiGene has granted the underwriters a 30-day option to purchase up to an additional 495,050 ADSs at the public offering price, less underwriting discounts and commissions. The offering is expected to close on January 22, 2018, subject to customary closing conditions.

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
 14 transactions totaling $190 million 
 Supplies, Equipment & Services
 10 transactions totaling $10 million
 Healthcare IT & Managed Care
 4 transactions 
 Healthcare Facilities & Distributors
 14 transactions totaling $205 million

Pharma & Biotech
17 private placements totaling $402 million
Supplies, Equipment & Services
12 private placements totaling $187 million
Healthcare IT & Managed Care
9 private placements totaling $30 million
Healthcare Facilities & Distributors
2 private placements totaling $7 million

 Pharma & Biotech
 18 public offerings totaling $2,135 million
 Supplies, Equipment & Services
 10 public offerings totaling $1,092 million
 Healthcare IT & Managed Care
 1 public offering totaling $35 million
 Healthcare Facilities & Distributors
 2 public offerings totaling $400 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 18, 2018 -  Fierce Pharma
Novartis and Biocon, which have each had success developing biosimilars on their own, will now see what they can do together. The two have formed a partnership to produce "next generation" biosimilars. They announced  the collaboration today saying they would share the costs equally for developing and commercializing multiple biosimilars in immunology and oncology. Sandoz, the generics unit of Novartis, will market them in the U.S., Canada and most of Europe, while India's Biocon will take the rest of the world.

January 18, 2018 -  Fierce Biotech
Gilead and its shiny new $12 billion biotech buy Kite Pharma have teamed up with Big Pharma Pfizer to work on a Yescarta-utomilumab combination test in certain blood cancers. Yescarta (axicabtagene ciloleucel), approved by the FDA last year in the first wave of new CAR-T cell therapies, will be teamed up with Pfizer's experimental humanized 4-1BB agonist utomilumab in patients with refractory large B-cell lymphoma.

January 18, 2018 - BioSpace
As reported yesterday, there are rumors that Celgene Corporation is in talks to acquire Juno Therapeutics. The rumors drove Juno stock up more than 50 percent, while Celgene's dropped slightly. Now that a little more time has gone by, investors and analysts have given it some thought and mostly think it's a sensible acquisition. 
5 Healthcare Systems to Launch New Generic Drug Company
January 18, 2018 -  BioSpace
The 2016 U.S. presidential election was marked by aggressive and often shrill attacks on the biopharmaceutical industry over drug pricing. Now it appears that healthcare intends to do something about it. The U.S. Department of Veteran Affairs (VA) and Intermountain Healthcare, Ascension, SSM Health and Trinity Health are forming a not-for-profit generic drug company. The intention is for it to be a U.S. Food and Drug Administration (FDA) - approved  manufacturer that will either directly manufacture or subcontract manufacturing of certain generic drugs.

Aeterna Zentaris Forges $24M Tie-Up With Strongbridge
January 17, 2018 - BioSpace
Aeterna Zentaris announced today that it has, through a wholly-owned subsidiary, entered into a license and assignment agreement with a wholly-owned subsidiary of Strongbridge Biopharma plc  to carry out development, manufacturing, registration and commercialization of Macrilen™ (macimorelin) in the United States and Canada. Aeterna Zentaris will receive an upfront cash payment of US$24,000,000 from Strongbridge, and, for as long as Macrilen™ (macimorelin) is patent-protected, Aeterna Zentaris will be entitled to a 15% royalty on net sales up to US$75,000,000 and an 18% royalty on net sales above US$75,000,000.  Following the end of patent protection in United States or Canada for Macrilen™ (macimorelin), Aeterna Zentaris will be entitled to a 5% royalty on net sales in that country.

January 16, 2018 -  Fierce Pharma
GlaxoSmithKline already partners with Vectura on respiratory therapies, but some say the British pharma giant could be looking to take the pair's relationship one step further.  Glaxo is preparing a 175-pence-per-share bid for the Chippenham, U.K.-based company, sources told  The Telegraph. That offer would value Vectura at close to £1.2 billion. If GSK does strike, it'll be taking advantage of Vectura's 2017 share price drop. In May, the FDA turned down a generic of GlaxoSmithKline blockbuster Advair from Vectura and partner Hikma, and investors have continued to pressure the stock as they await a final verdict from the regulatory agency, due this quarter, the newspaper notes.
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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