Week of January 14, 2018 | Vol. 8, Issue 2
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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.
Lilly makes $8 billion bet on drugs for rare cancers with Loxo Oncology buy
Eli Lilly said on Monday it will buy Loxo Oncology Inc for $8 billion, an expensive bet on a pipeline of cancer drugs

Eli Lilly said on Monday it w ill buy Loxo Oncology Inc for $8 billion, an expensive bet on a pipeline of cancer drugs that target rare genetic mutations and the biggest acquisition in the drugmaker's 143-year history. The price repres ents a 68 percent premium to  Loxo's Friday share price close, which some Wall Street analysts said was high for a company with only one drug o n the market that it shares with a partner.  Loxo shares surged 66 percent to $232.65, close to the offer price of $235 per share, and prompted stock price rises for a other small developers of targeted cancer therapies, including Array BioPharma, Blueprint Medicines Corp and Clovis Oncology Inc. Lilly shares rose 0.5 percent to $115.28.   The cash deal comes on the heels of Bristol-Myers Squibb Co's agreement last week to buy Celgene Corp for $74 billion in the largest pharmaceutical deal ever, spurring investors' hopes of a new wave of large healthcare acquisitions.  Loxo gained prominence in 2017 - just three years after going public - with impressive clinical trial results showing its drug to be highly effective on cancers driven by a single gene mutation known as TRK fusion, regardless of where in the body the tumors originated.  These patients, with more than 17 different types of advanced cancer but all with the same genetic mutation, had run out of other treatment options. Yet some 80 percent who received Loxo's first drug, a pill called larotrectinib, experienced dramatic, often long-term improvement.

C ontinue Reading at Reuters .
Gilead Inks $785 Million Deal with Yuhan for NASH Development 
Gilead Sciences is acquiring the global rights to develop and commercialize novel small molecules against two targets from Yuhan Coproration

The drugs will be developed to treat advanced fibrosis related to nonalcoholic steatohepatitis (NASH). NASH is a form of liver disease that can lead to cirrhosis but is not caused by alcohol consumption.  The two companies will conduct preclinical research together, but Gilead will be responsible for global clinical development. Gilead will also handle commercialization worldwide, outside of the Republic of Korea.  Gilead is paying Yuhan $15 million up front. Yuhan is eligible for up to another $770 million in possible milestone "biobucks" payments as well as royalties. The two companies already have a commercial collaboration to promote Gilead's products in the Republic of Korea. "This collaboration builds on our long-term partnership with Yuhan, with a new focus on the investigation of novel approaches to treat patients with advanced fibrosis due to NASH that complement our ongoing research programs," stated John McHutchison, Gilead's chief scientific officer and head of Research and Development. "We look forward to working with the Yuhan team to advance our work in this area where there is a significant unmet need for patients." In December 2018, Gilead inked a strategic collaboration  with Cambridge, Mass.-based Scholar Rock  to discover and develop highly specific inhibitors of transforming growth factor beta activation for fibrotic diseases, including NASH. TGFßf-driven signaling is believed to be a major regulator of fibrosis.
C ontinue Reading at BioSpace .
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
24 transactions totaling $8,345 million
Supplies, Equipment & Services
24 transactions totaling $28 million
Healthcare IT & Managed Care
10 transactions totaling $64 million
Healthcare Facilities & Distributors
16 transactions totaling $246 million

Pharma & Biotech
20 private placements totaling $495 million
Supplies, Equipment & Services
17 private placements totaling $55 million
Healthcare IT & Managed Care
11 private placements totaling $112 million
Healthcare Facilities & Distributors
2 private placements totaling $1 million

Pharma & Biotech
5 public offering totaling $288 million
Supplies, Equipment & Services
3 public offerings totaling $100 million
Healthcare IT & Managed Care
0 public offerings 
Healthcare Facilities & Distributors
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.

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 11, 2019 - Fierce Pharma
Big deals, attempts at decent deals and impending IPOs-as usual, the J.P. Morgan Healthcare Conference was awash in deal buzz as well as the occasional rainfall. But that's far from all the talk that came out of meeting rooms, restaurants and hotel lobbies.

January 11, 2019 - Bio Space
Amarantus Bioscience Holdings, Inc.(OTC Pink: AMBS) (the "Company," or AMBS), a US-based JLABS-alumnus biotechnology holding company developing first-in-class orphan neurologic, regenerative medicine and ophthalmic therapies and diagnostics through its subsidiaries, and IDEA Pharma LTD  have announced a highly original partnership, to bring together Amarantus' innovative therapeutics and diagnostics portfolio with IDEA's industry-leading path-to-market expertise. 
January 10, 2018 - Reuters
Danish hearing aid maker Widex and German rival Sivantos have reopened an application seeking European Commission approval for their planned $8 billion merger, public records show.
January 8, 2019 - Bio Space
Takeda Pharmaceutical Company Limited (TOKYO:4502) (NYSE:TAK) ("Takeda") today announced the completion of its acquisition of Shire plc ("Shire"), becoming a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan.  Takeda now has an attractive, expanded geographic footprint and leading position in Japan and the U.S., bringing its highly-innovative medicines to approximately 80 countries/regions with dedicated employees worldwide.
FDA creating innovation office to speed drug development
January 8, 2019 -  Fierce Biotech
The FDA is creating an office of drug development science to cut the cost of bringing new medicines to patients, BioCentury reports.  Staff at the office will create tools that sponsors and the FDA can use to streamline the development and regulatory assessment of drugs.

January 7, 2019 - BioPharma Dive
After a Phase 3 trial setback last month, AbbVie began evaluating Stemcentrx's intangible assets to estimate an impairment charge, which the pharma has ballparked at $4 billion, according to a Jan. 4 filing with the Securities and Exchange Commission. 
Recent Materials Providing Insight Into Healthcare & Related Industries

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