Week of October 30, 2017 | Vol. 6, Issue 42
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines

Complete Transaction Tables
Full Trading Comp Analysis

Quick Links
Who We Are
LinkedIn Corporate Site
LinkedIn M&A Discussion Group

Contact Information

Xan Smith

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.
CVS Makes Blockbuster Aetna Bid
Sources say CVS Health has proposed to buy Aetna for more than $200 a share

CVS Health   Corp.   is in talks to buy  Aetna   Inc.   for more than $66 billion as the drugstore giant scrambles to fortify itself against looming competition from  Amazon.com   Inc.  amid a continuing reordering of the health-care industry. CVS has made a proposal to buy the health insurer for more than $200 per share, people familiar with the matter said. The talks may not lead to a deal, but in a sign of their seriousness, the companies' respective chief executives- Larry Merlo at CVS and Mark Bertolini at Aetna-have met multiple times over a period of roughly six months, one of the people said. With Aetna, CVS could lock in a huge number of members for its pharmacy-benefit management, or PBM, arm, as well as customers for its drugstores. That could bolster its leverage in negotiations with drugmakers, while its oversight of health insurance could improve its ability to strike new deals that tie drug prices to patient outcomes.
C ontinue Reading at  The Wall Street Journal.
Impact bags $90M package to take ex-Sanofi drug to market
It turns out the $22.5 million round Impact Biomedicines unveiled two weeks ago was just the start of its financing plans. 

Impact has turned to Oberland Capital to access the latest source of cash. Oberland has signed up to make two milestone-based payments of $20 million each. In return, Impact will give Oberland predefined fedratinib royalties. The focus on royalties, not equity, reflects the model of Oberland and specifically the $425 million royalty and credit opportunities fund it put together in 2015. The deal also gives Impact access to money to help it start racking up fedratinib sales. If Impact gets the drug past the FDA and onto the market, it will have the chance to draw down $35 million to $50 million more in predefined notes from Oberland. Those monies are earmarked for funding the launch and commercialization of fedratinib.  With the $90 million funding package coming two weeks after Medicxi drove Impact to a $22.5 million round, the startup now has the money to take fedratinib to market and beyond.

Continue Reading at  Fierce Biotech .

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
 8 transactions totaling $47 million 
 Supplies, Equipment & Services
 24 transactions totaling $1,253 million
 Healthcare IT & Managed Care
 4 transactions totaling $0
 Healthcare Facilities & Distributors
 20 transactions totaling $2,630 million

Pharma & Biotech
17 private placements totaling $457 million
Supplies, Equipment & Services
19 private placements totaling $209 million
Healthcare IT & Managed Care
6 private placements totaling $13 million
Healthcare Facilities & Distributors
1 private placements totaling $0

 Pharma & Biotech
 17 public offering totaling $715 million
 Supplies, Equipment & Services
 8 public offerings totaling $69 million
 Healthcare IT & Managed Care
 0 public offerings 
 Healthcare Facilities & Distributors
 1 public offering totaling $0

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 subsectors 

For a complete trading comp analysis (including the individual equities that comprise the subsectors), 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.
Pfizer's $15B Consumer Health Biz May be on GlaxoSmithKline's Shopping List 
October 26, 2017 -  BioSpace
Earlier this month, Pfizer's  chairman and chief executive officer, Ian Read, said  he was considering selling the company's Consumer Healthcare business, or possibly spinning it off. It now appears to be gaining some momentum,  with the UK's GlaxoSmithKline  a potential buyer. Pfizer Consumer Healthcare has at least five major categories: dietary supplements, pain management, gastrointestinal, respiratory and personal care. Brand name products include Centrum, Caltrate, Emergen-C, Thermacare, Nexium 24 Hour, Robitussin, ChapStick and Anbesol. Ten of the company's brand each exceeded $100 million in sales in 2016. The unit had total sales of $3.4 billion last year.

October 25, 2017 - Fierce Pharma
Baxter International expects to take a $70 million revenue hit in the fourth quarter after Hurricane Maria left its three plants on the island without reliable power, communications or transportation.  The Deerfield, Illinois, maker of sterile injected and infused products is the latest to offer a damage assessment as the industry continues to tally the impact from last month's natural disaster that swept through Puerto Rico, home to more than 40 drug manufacturing facilities.

October 23, 2017 - Reuters
Britain's Spire Healthcare has rejected a full takeover offer from South African private hospitals operator Mediclinic International , which already owns nearly 30 percent of its stock, sending its shares up 12 percent. Spire said Mediclinic had made a preliminary and conditional proposal that consisted of 150 pence in cash and 0.232 new Mediclinic shares per Spire share, valuing the target at 298.6 pence per share or around 1.2 billion pounds ($1.6 billion) in total.

An Overview of Events Hosted or Attended by the Bourne Partners Team
36th Annual J.P.Morgan Healthcare Conference
January 8-11, 2018 | San Francisco, CA
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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