Week of May 27, 2019 | Vol. 8, Issue 21
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In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
Upcoming Events
Quick Links
Contact Information
Managing Director
Business Development
Managing Director
Head of M&A and Capital Advisory
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Above is an overview of recent industry M&A activity. For additional information, see the charts below or click on the chart above to download complete transaction tables broken out by industry sub sectors.
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Merck Boosts Late-Phase Cancer Pipeline With $1.1B Peloton Buy
The deal will give Merck control of an experimental oral HIF-2α inhibitor that could challenge Keytruda for the metastatic renal cell carcinoma market.
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Peloton was due to go public this week and raise $150 million or more to bankroll a late-phase trial of HIF-2α inhibitor PT2977 in mRCC patients previously treated with at least one checkpoint inhibitor, such as Merck’s Keytruda. But a late offer from Merck has persuaded the biotech to switch lanes, taking a buyout that represents a premium on the IPO terms even before milestones are factored in. All told, Merck could pay $1.2 billion in milestones on top of the $1.1 billion cash upfront. In return, Merck will gain a drug that is due to move into phase 3 later this year on the strength of data from 55 mRCC patients who had received at least one prior line of therapy. The trial linked PT2977 to a partial response rate of 24%. A further 54% patients had stable disease as of the March 15 cutoff, resulting in an overall clinical benefit rate of 78%. At 40 weeks, of follow-up the probability of progression-free survival was 50.1%. Seventeen patients, some of whom had been taking PT2977 for more than 70 weeks, remained on treatment as of the last cutoff.
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RECENT INDUSTRY TRANSACTIONS
An Overview of Transactions Within Market Sub-segments
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. Total transaction values are provided in USD millions.
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Pharma & Biotech
16 transactions totaling $2,628 million
Supplies, Equipment & Services
22 transactions totaling $226 million
Healthcare IT & Managed Care
5 transactions totaling $500 million
Healthcare Facilities & Distributors
16 transactions totaling $650 million
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Pharma & Biotech
22 transactions totaling $680 million
Supplies, Equipment & Services
11 transactions totaling $90 million
Healthcare IT & Managed Care
6 transactions totaling $66 million
Healthcare Facilities & Distributors
0 transactions
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Pharma & Biotech
22 transactions totaling $2,555 million
Supplies, Equipment & Services
11 transactions totaling $810 million
Healthcare IT & Managed Care
2 transactions totaling $20 million
Healthcare Facilities & Distributors
1 transaction totaling $77 million
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INDUSTRY TRADING COMPS
A Breakdown of Relevant Trading Multiples
Each week, we provide updated trading comps for leading companies from numerous healthcare sub-sectors.
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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.
Note: data reflects prior week close.
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RECENT INDUSTRY TRANSACTIONS
A Sampling of Relevant Industry Headlines from 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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May 23, 2019 - Bio Pharma Dive
Lofty biotech valuations and rising competition in fields like gene therapy are pushing Novartis to look at companies earlier in clinical development for potential dealmaking opportunities, executives from the Swiss pharma said Wednesday.
May 22, 2019 - Fierce Biotech
Amgen has
offered
$167 million (€150 million) to buy Nuevolution. The takeover will give Amgen control of a drug discovery platform that landed Nuevolution deals with leading companies plus a pipeline of early-stage cancer and inflammation programs.
May 21, 2019 - Fierce Biotech
The German company is spending a small sum, just
$90 million
, on its latest purchase, but boosts its offering in biologics oncology, central nervous system disorders, pain, inflammation, metabolics and infectious diseases.
May 20, 2019 - Fierce Pharma
The Pennsylvania drugmaker will
shell out
$130 million for Aspen Pharmacare’s portfolio of prescription and over-the-counter products in Australia and New Zealand as part of a distribution deal the companies signed in December.
May 20, 2019 - Fierce Biotech
The pipeline of drugs and vaccines aimed at diseases prevalent in low- and middle-income countries has more than doubled since 2014, according to the Access to Medicine Foundation (AMF). However, the trend was driven by surging activity in noncommunicable diseases, leaving many conditions underserved by the current pipeline.
May 20, 2019 - Bio Pharma Dive
For $1.3 billion, a pension plan run by the Canadian government has acquired royalty rights to Merck & Co.'s Keytruda from Lifearc, a charity responsible for handling intellectual property rights on discoveries made under the United Kingdom's Medical Research Council.
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MARKET REPORTS
Recent Materials Providing Insight Into Healthcare Related Industries
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June 3 - 6, 2019 | Philadelphia, PA, United States
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June 23 - 27, 2019 | San Diego, CA, United States
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