Week of July 30, 2018 | Vol. 7, Issue 30
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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.
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.

C ontinue Reading at Markets Insider .
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.

C ontinue Reading at Fierce Pharma .
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.

C ontinue Reading at Reuters .
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
 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

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

 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 

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.
July 25, 2018 -  Fierce Biotech
The agreement features multiple components. To get the relationship started, 23andMe and GSK are bringing existing programs into the collaboration. 23andMe is proposing to include its early-stage programs, while GSK is contributing its LRRK2 inhibitor. GSK thinks 23andMe's database of people who know their LRRK2 variant status will help the Parkinson's program enroll patients on the way to clinical proof of concept.
July 25, 2018 -  Fierce Biotech
Zika virus is notorious for causing brain defects when passed down from a pregnant woman to her fetus. But researchers at Nemours Children's Hospital and the University of Central Florida suggest that the exact ability of the virus to infect developing nerve cells might help fight neuroblastoma, a rare but deadly childhood cancer.
July 24, 2018 -  The Wall Street Journal
New Jersey's largest health-care system and its largest university on Tuesday announced the launch of a partnership that would create one of the biggest health-care systems in the U.S.  The agreement, which has been in the final stages for at least a year, has RWJBarnabas Health investing $100 million initially, and more than $1 billion over 20 years, into the partnership with Rutgers, the State University of New Jersey.

July 24, 2018 - Fierce Biotech
Biogen has bolted on a couple of early-stage drug candidates for neuromuscular diseases via a $535 million deal with California startup AliveGen.  The deal was announced among Biogen's second-quarter results update  and includes two drugs that target myostatin, a regulator of muscle growth and function. Biogen says it plans to develop the two candidates for indications such as spinal muscular atrophy (SMA) and amyotrophic lateral sclerosis (ALS).
July 24, 2018 -  Reuters
Italian hearing aid maker Amplifon SpA has agreed to buy privately owned Gaes Group for 528 million euros ($616.6 million) in cash, in a bid to become the biggest player in Spain and also enter new markets.

July 23, 2018 -  The Wall Street Journal
China's Tencent  Holdings Ltd. has struck a deal to provide WebMD's health-care content to the more than 1 billion users on its WeChat social network, according to both companies. The content-licensing deal includes WebMD articles, videos and slideshows covering medical and health topics, such as the side effects of chemotherapy or the symptoms of appendicitis. Financial terms weren't disclosed.

July 23, 2018 -  Fierce Biotech
Little-known private biotech Anima Biotech has signed a deal with Eli Lilly potentially worth more than $1 billion in biobucks as the pair seeks to work on the biotech's translation inhibitors.  Caveats always abound on such deals with high numbers, as the vast majority of that big figure is backloaded; upfront, Anima sees just $30 million, with $14 million for R&D.
July 23, 2018 -  Fierce Pharma
The bad news: China's latest vaccine scandal, with its second-largest rabies vaccine maker at front and center, exploded on social media over the weekend. Citizens raged about the company's manufacturing misconduct and expressed an even broader distrust in locally made vaccines. The good news, for multinational vaccines makers at least? That anger and skepticism may offer an opportunity to expand their meager market share in China.
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
September 17 - 18, 2018 | Bethesda, MD
September 27 - 28, 2018 | New Brunswick, NJ
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

Bourne Partners
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