Week of May 7, 2018 | Vol. 7, Issue 18
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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.
Johnson & Johnson Pens $140M Deal For Preclinical Oncolytic Virus Startup
The outlay gives J&J control of preclinical prospects designed to evade the body's immune system, enabling them to keep killing cancer cells for longer. 

Rockville, Maryland-based BeneVir grew out of the research of New York University professor Ian Mohr, Ph.D. The work led to the creation of a technology dubbed T-Stealth. Like all oncolytic viruses, BeneVir's assets are designed to get into cancer cells, replicate and kill their host, thereby chipping away at the tumor and triggering an immune response. The difference, in theory, is that BeneVir's T-Stealth technology enables its viruses to avoid being gobbled up by T cells. BeneVir has yet to generate clinical data to validate its hypothesis but has evidently done enough in preclinical to turn heads at J&J's subsidiary Janssen. In addition to the $140 million upfront, J&J has committed to up to $900 million in milestones, bringing the potential size of the deal up past the $1 billion mark. The outlay gives J&J assets it thinks can support a push to carve out a piece of the solid tumor market. "Oncolytic viral immunotherapy holds exciting potential in the treatment of solid tumors through the priming and augmenting of an anti-tumor immune response," Janssen's Peter Lebowitz, M.D., Ph.D., said in a statement. "BeneVir's unique technology platform complements our immuno-oncology research, which is focused on bringing forward an array of novel immunotherapies and combinations that may improve treatment outcomes for patients."    

C ontinue Reading at Fierce Biotech .
Chinese Firm Makes Last Minute $1.4 Billion Offer For Australia's Sirtex, Trumps Varian
Chinese private equity firm CDH Investment lobbed a last minute $1.4 billion offer for Australian liver-cancer treatment firm Sirtex Medical

CDH's A$33.60 ($25.33) surprise cash-per-share offer is fully a fifth higher than Varian's, at A$28 per share, and it lands amid a multibillion dollar shopping spree from Chinese interests in Australia's healthcare sector.  Sirtex said on Friday it will seek to postpone a shareholders' meeting, scheduled for Monday, that was to vote on the Varian deal, though its directors continue to support the Californian firm's offer. Sirtex shares jumped to an 18-month high, before closing 5.6 percent higher at A$29.42. "Geez, I wouldn't say this is a normal occurrence," said Simon Mawhinney, Chief Investment Officer at fund manager Allan Gray, of the 11th-hour bid. Allan Gray is Sirtex's largest shareholder, with a 6.3 percent stake as of September last year. "We obviously welcome with open arms higher offers, but it's certainly not something we were expecting this late in the piece," he said. "I'm inclined to do nothing until I hear from the company and see what they advise...it's pretty much a wait-and-see."

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 $2,768 million 
 Supplies, Equipment & Services
 19 transactions totaling $413 million
 Healthcare IT & Managed Care
 8 transactions totaling $411 million
 Healthcare Facilities & Distributors
 10 transactions totaling $492

Pharma & Biotech
30 private placements totaling $985 million
Supplies, Equipment & Services
20 private placements totaling $88 million
Healthcare IT & Managed Care
13 private placements totaling $120 million
Healthcare Facilities & Distributors
2 private placements totaling $3 million

 Pharma & Biotech
 13 public offerings totaling $849 million
 Supplies, Equipment & Services
 5 public offerings totaling $114 million
 Healthcare IT & Managed Care
 5 public offerings totaling $2,868
 Healthcare Facilities & Distributors
 1 public offering totaling $6,250 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.
May 3, 2018 -  Fierce Biotech
Casma Therapeutics is taking aim at a range of conditions through a "long-neglected" cell process: its garbage disposal. Armed with $58.5 million in series A cash from Third Rock, the biotech is working on a platform that could lay the groundwork for disease-modifying therapies for inflammatory and neurodegenerative diseases, among others.  Autophagy, the process by which cells clear out unwanted material-such as proteins, organelles and pathogens-has been implicated in a number of disease areas. In neurodegenerative disease, says Casma CEO Keith Dionne, cells' ability to induce autophagy slows down over time and dysfunctional material starts to accumulate. Cellular function starts to decline and then the cells die. 

May 3, 2018 -  The Wall Street Journal 
Chicago-based venture-capital firm 7WireVentures has raised a $100 million fund that will invest in health startups developing consumer-focused technology.  The firm, founded in 2011 by former Allscripts Healthcare Solutions Inc.  executives Glen Tullman and Lee Shapiro, prefers to make early-stage investments as the lead investor at around $3 million to $5 million each deal.

Fresenius alleges 'blatant fraud' at U.S. drugmaker Akorn
May 2, 2018 -  Reuters
German healthcare group Fresenius alleged it uncovered "blatant fraud at the very top level" of U.S. generic drugmaker Akorn Inc ( after Fresenius agreed to acquire the company for $4.75 billion, according to a court filing made public late on Tuesday. Fresenius abandoned the merger agreement last month, and Akorn has sued in Delaware Court of Chancery to try to hold Fresenius to the deal.

Bristol-Myers Squibb drops phase 3 trials of $800M IDO drug
May 1, 2018 -  Fierce Biotech
Bristol-Myers Squibb has pulled two phase 3 clinical trials of the IDO1 inhibitor it acquired through an $800 million takeover of Flexus. The studies are the latest dominoes to fall following the failure of Incyte's rival IDO drug to move the needle in a pivotal trial.  Enrollment in the phase 3 trials of Bristol-Myers' IDO1 drug BMS-986205 and cornerstone checkpoint inhibitor Opdivo in patients with non-small cell lung cancer  or head and neck cancer  was just getting started when news of Incyte's setback hit less than four weeks ago. The Incyte data triggered a rapid re-evaluation of the IDO field, causing first NewLink and now Bristol-Myers to reconsider their strategies.
Gilead and Verily Team to Tackle Three Inflammatory Diseases
May 1, 2018 - BioSpace
Gilead Sciences and Verily Life Sciences,  a Google/Alphabet  company, have teamed up  to focus on three inflammatory diseases: rheumatoid arthritis, inflammatory bowel disease and lupus-related diseases. The two companies will use Verity's Immunoscape platform, which combines immunogenomic phenotyping and advanced computational analysis to profile the molecular characteristics of inflammatory diseases. The collaboration is planned to last three years. Gilead will provide clinical data and thousands of immune cell samples that have been involved in the company's ongoing Phase II and III clinical trials.

May 1, 2018 -  Reuters
Cash-strapped Indian hospital operator Fortis Healthcare Ltd said on Tuesday that two of its five suitors had boosted their bids to invest in the company as of a deadline for binding offers on Tuesday. Malaysia's IHH Healthcare Bhd lifted its offer to 175 rupees a share, a 9.4 percent premium to an earlier proposal. IHH earlier proposed injecting 6.5 billion rupees ($98 million) immediately into Fortis, and then 33.5 billion after due diligence.

April 30, 2018 - BioSpace
Shares of SteadyMed  Ltd. have skyrocketed more than 77 percent in premarket trading today after United Therapeutics  announced it will acquire the company for a total of $216 million, including $75 million in contingent consideration. California-based SteadyMed is a specialty pharmaceutical company focused on the development and commercialization of drug product candidates to treat orphan and high-value diseases with unmet parenteral delivery needs. For Silver Spring, Maryland-based United Therapeutics the acquisition serves a twofold purpose. For one, the deal centers on SteadyMed's experimental combination therapy Trevyent for the subcutaneous treatment of pulmonary arterial hypertension (PAH).

April 30, 2018 -  Fierce Biotech
It was something of an up-and-down week for IPOs: Two biotechs, Alzheimer's focused Alzheon and brittle bone drug company Mereo BioPharma pulled their collective $161 million Nasdaq attempts, but we ended the week with better news.  Inflammatory disease biotech Kiniksa Pharmaceuticals said late Friday it was seeking out a meaty $100 million IPO, while antibody biotech Scholar Rock, on the same day, filed for a $75 million IPO.
Current Opportunities Available Through Bourne Partners
Project Limestone
Asset Divestiture
Southeastern US | ANDAs and Manufacturing Equipment | ANDA Revenue disclosed with NDA

Project Ocean 
Sell-side M&A
Northeastern US | CDMO | Approximately $6mm Revenue | EBITDA disclosed with NDA

Project Barracuda
Asset Divestiture
Midwestern US | Consumer Health/OTC | Approximately $31.5mm Revenue | Approximately $12mm EBITDA

Project Longhorn 
Sell-side M&A
Southeastern US | CDMO | Approximately $85mm Revenue | Approximately $8mm EBITDA
Recent Reports Providing Insight Into Healthcare & Related Industries
An Overview of Events Hosted or Attended by the Bourne Partners Team
BIO International Convention
June 4 - 7, 2018  | Boston Convention Center |  Boston, MA
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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