Week of July 16, 2018 | Vol. 7, Issue 28
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Managing Director
Business Development
Jeremy C. Johnson
Managing Director
Head of M&A and Capital Advisory
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.
Malaysia's IHH Healthcare Nears Takeover Of India's Fortis With $1.1 Billion Bid
IHH'S 170 rupees per share offer was chosen over a joint bid from Indian firm Manipal Health Enterprises Ltd and U.S. private equity firm TPG Capital. 

Malaysia's IHH Healthcare Bhd is set to take control of India's Fortis Healthcare after its bid of up to $1.1 billion was chosen over a rival's, giving it ownership of over 30 hospitals amid a private healthcare boom in India.The offer represents a roughly 20 percent premium to its last closing price and caps a months-long bidding war for control of the Indian company that drew interest from domestic and international suitors.  The offer represents a roughly 20 percent premium to its last closing price and caps a months-long bidding war for control of the Indian company that drew interest from domestic and international suitors. IHH's offer is the third one that cash-strapped Fortis has approved this year, with a previous offer being shot down by shareholders. However, this time there is more confidence of the deal being approved.

C ontinue Reading at Reuters .
Otsuka Pharmaceutical To Acquire Visterra
Otsuka will acquire Visterra for approximately $430M in an all-cash transaction
 
The Otsuka and Visterra boards of directors have approved the transaction. Subject to customary closing conditions, including expiration or termination of the waiting period under U.S. antitrust laws, the transaction is expected to close in the third quarter of 2018.  Visterra's Hierotope platform, comprised of novel computational and experimental technologies, enables the design and engineering of precision antibody-based therapies that specifically bind to, and modulate, disease targets that are not adequately addressed by current technologies in antibody therapeutics. Visterra;s pipeline  includes programs targeting IgA nephropathy and other kidney diseases, cancer, chronic pain and infectious diseases. Otsuka's research areas are in psychiatric and neurological diseases, hematological cancers, and kidney, cardiovascular, and infectious diseases. The company is placing emphasis on proprietary drug discovery and development platforms, including antibody development platforms, as a means to increase the efficiency of drug discovery across its programs and as an addition to conventional R&D processes.

C ontinue Reading at BioSpace .
RECENT INDUSTRY TRANSACTIONSRecentIndustryTransactions
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 or use the download link above. Total transaction values are provided in USD millions.



 Pharma & Biotech
 17 transactions totaling $1,107 million 
 Supplies, Equipment & Services
 31 transactions totaling $814 million
 Healthcare IT & Managed Care
 8 transactions totaling $2 million
 Healthcare Facilities & Distributors
 17 transactions totaling $3,111 million





Pharma & Biotech
26 private placements totaling $276 million
Supplies, Equipment & Services
23 private placements totaling $629 million
Healthcare IT & Managed Care
12 private placements totaling $405 million
Healthcare Facilities & Distributors
1 private placement totaling $31 million



 Pharma & Biotech
 19 public offerings totaling $996 million
 Supplies, Equipment & Services
 5 public offerings totaling $11 million
 Healthcare IT & Managed Care
 0 public offerings
 Healthcare Facilities & Distributors
 0 public offerings 

INDUSTRY TRADING COMPSIndustryTradingComps
A Breakdown of Relevant Trading Multiples

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.
RECENT INDUSTRY HEADLINESRecentIndustryHeadlines
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 12, 2018 -  Fierce Biotech
Genmab has paid  Immatics $54 million (€46 million) to enter into an anticancer bispecific antibody pact. The upfront fee and $550 million milestone commitment buy Genmab the right to work with Immatics on the development of T-cell-engaging bispecific immunotherapies in multiple indications.  Denmark's Genmab has a bispecific antibody platform that Johnson & Johnson has used to develop drugs that recruit T cells to attack tumors. However, in assessing how to develop its next-generation immunotherapies, Genmab concluded it is best served by looking outside its walls for technology and targets. The result is a partnership with Germany's Immatics.

July 11, 2018 -  Fierce Biotech
AstraZeneca and 4D Molecular Therapeutics have joined forces  to develop gene therapies against chronic lung diseases. The collaboration will use 4D's adeno-associated virus (AAV) vectors to create therapies that insert genes that code for therapeutic proteins into human cells.  Knowledge of the genetic roots of many chronic lung diseases, such as chronic obstructive pulmonary disease (COPD), has fueled interest in the use of gene therapies for years. However, while the interest has led to research into targets including alpha-1-antitrypsin, it has yet to translate into gene therapies with validated clinical efficacy.
 
July 11, 2018 -  Fierce Biotech
Taking healthy immune-boosting T cells from patients and engineering them to recognize and kill cancer is a well-established approach now, with the success of Gilead's Yescarta and Novartis' Kymriah. But researchers at Brigham and Women's Hospital have a different idea for creating cancer-killing cells-and it involves modifying tumor cells instead of T cells.  The team is using CRISPR gene editing to modify cancer cells so they can home in on tumors and deliver therapies to them. So far, they're getting promising results in animal models of breast and brain cancer, they reported  in the journal Science Translational Medicine.

July 10, 2018 -  BioSpace
President Donald Trump used the power of his Twitter feed to call out and condemn pharma giant Pfizer after that company increased a number of its prescription medications by nearly 10 percent. On Monday Trump said that Pfizer "should be ashamed" that it increased the price of its medications "for no reason." Trump also lumped in other companies that have increased the price of prescriptions into his condemnation, although he did not specify which ones.
July 10, 2018 -  Fierce Biotech
The Wellcome Trust has created  a £250 million ($331 million) nonprofit fund to bankroll high-risk, high-reward research. Wellcome sees the fund accelerating the progress of early-stage projects that may struggle to secure traditional grants or venture investments. Nonprofit Wellcome already puts £900 million a year into research through its primary fund and set up profit-driven investor Syncona to support later-stage, commercially attractive opportunities. The new investment vehicle, Leap Fund, fills a different niche by making money available to researchers who, for different reasons, may get turned down by the primary fund or Syncona. 

July 10, 2018 -  Reuters
Takeda Pharmaceutical Co Ltd on Tuesday said it has received U.S. approval for its $62 billion acquisition of London-listed Shire Plc, taking the Japanese firm one step closer to its goal of becoming a global top 10 drugmaker.
PARTNERING AND M&A OPPORTUNITIESUpcomingEvents
Current Opportunities Available Through Bourne Partners
Project Barracuda
Asset Divestiture
Midwestern US | Consumer Health/OTC | Approximately $31.5mm Revenue | Approximately $12mm EBITDA
MARKET REPORTSUpcomingEvents
Recent Reports Providing Insight Into Healthcare & Related Industries
UPCOMING EVENTSUpcomingEvents
An Overview of Events Hosted or Attended by the Bourne Partners Team
PBOA Annual Meeting & Conference
September 17 - 18, 2018 | Bethesda, MD
Contract Pharma: 2018 Contracting & Outsourcing Conference
September 27 - 28, 2018 | New Brunswick, NJ
October 2, 2018  | 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. 

Sincerely,

The Bourne Partners Team

Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407