Week of July 30, 2018 | Vol. 7, Issue 30
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In This Issue
Downloads
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Contact Information
Managing Director
Business Development
Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory
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INDUSTRY M&A SNAPSHOT
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.
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MannKind And Tanner Pharma Group Enter Into An Ex-U.S. Distribution Agreement For
Afrezza
®
Afrezza® (insulin human) Inhalation Powder is a rapid-acting inhaled insulin indicated to improve glycemic control in adult patients with diabetes mellitus.
MannKind Corporation (Nasdaq:MNKD), a company focused on the development and commercialization of inhaled therapeutic products for patients with diseases such as diabetes and pulmonary arterial hypertension, today announced a distribution agreement for Afrezza® with Tanner Pharma Group, a global provider of integrated specialty access solutions. The agreement names Tanner as a distributor of Afrezza® outside of the United States in regions the product is not yet registered.
"Al Mann had a vision of making Afrezza available to all people living with diabetes around the world and this agreement helps accelerate that access to Afrezza on a named patient access basis in underserved international markets," said Michael Castagna, Chief Executive Officer of MannKind. "Our partnership with Tanner Pharma to distribute Afrezza provides us a strong partner with a track record of success in working with physicians, hospitals and ministries of health to provide medicine that is not currently available in their country."
The distribution will be managed by TannerGAP, Inc. ("TannerGAP"), a wholly owned subsidiary of Tanner Pharma Group. "We are pleased to partner with MannKind in helping fulfill the demand for Afrezza in countries outside the U.S.," said Banks Bourne, Chairman and Founder of Tanner Pharma Group.
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CDMO Cambrex Snatches Halo Pharma, Getting 2 Plants And 425 Employees
Cambrex has agreed to pay $425 million to buy the dosage-form CDMO from SK Capital, a firm with a number of CDMO holdings.
"Halo's expertise in oral solids, liquids, creams and ointments fits well with our small molecule API business and brings a substantial new customer base and pipeline of small molecule products," Steve Klosk, Cambrex CEO said in a statement.
Halo operates manufacturing sites in Whippany, New Jersey, and Montreal, Québec, Canada, comprising a total of 430,000 square feet of plant space. Its 450-person workforce will join Cambrex's 1,200 employees across the United States and Europe. Cambrex said Halo is expected to generate more than $100 million in annual revenue in 2018. SK Capital has been in the midst of a lot of consolidation in the CDMO market. A year ago Perrigo sold off its active pharmaceutical business to the investment group for $110 million. Other deals include the recent June deal by France's Novacap to buy Boston-area-based CDMO PCI Synthesis. Also in June, Sweden's Recipharm struck a $60.2 million deal with Sanofi to buy the French drugmaker's contract inhalation drug business and plant in the U.K.
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Apollo To Buy LifePoint in Latest Private Equity Bet On Healthcare
Apollo Global Management will buy LifePoint Health in a $5.6 billion deal that will expand its rural U.S. hospitals business
The deal comes as Tennessee-based LifePoint and many of its peers face higher medical costs, fewer patient admissions and changes to reimbursement policies in Medicare and Medicaid that have pressured profits.
To compensate, LifePoint has been beefing up its presence in rural regions including in Pennsylvania and Tennessee, and streamlining operations at healthcare facilities there. The deal will bring together LifePoint and Apollo's RCCH HealthCare Partners, LifePoint said in a statement, confirming a Reuters report on Friday that the parties were in advanced talks for a buyout. Apollo's deal - its biggest this year - is the latest in a recent surge of public investments by U.S. private equity, the highest since the 2007-08 global financial crisis. With a record $1 trillion in cash at their disposal, top private equity names have turned to healthcare. Just last month, KKR and Veritas Capital each snapped up publicly-listed healthcare firms in multi-billion dollar deals.
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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.
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Pharma & Biotech
16 transactions totaling $318 million
Supplies, Equipment & Services
16 transactions totaling $856 million
Healthcare IT & Managed Care
1 transaction
Healthcare Facilities & Distributors
6 transactions totaling $5,777 million
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Pharma & Biotech
25 private placements totaling $1,049 million
Supplies, Equipment & Services
14 private placements totaling $71 million
Healthcare IT & Managed Care
8 private placements totaling $159 million
Healthcare Facilities & Distributors
6 private placement totaling $10 million
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Pharma & Biotech
16 public offerings totaling $1,347 million
Supplies, Equipment & Services
1 public offerings totaling $189 million
Healthcare IT & Managed Care
2 public offerings totaling $351 million
Healthcare Facilities & Distributors
0 public offerings
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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.
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RECENT INDUSTRY HEADLINES
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.
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