Week of April 8, 2019 | Vol. 8, Issue 14
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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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Roivant and Sinovant Launch Cytovant in $1 Billion-Plus Deal With MediGene
Cytovant will work to develop diseases prevalent in Asian patients.
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As part of the launch, Cytovant has inked a multi-program license and collaboration deal with
MediGene AG
, a company headquartered in Martinsried near Munich, Germany. Cytovant acquired exclusive licenses from MediGene to develop, manufacture, and commercialize MediGene’s research-stage T-cell immunotherapy that targets NY-ESO-1 as well as a DC vaccine that targets WT-1 and PRAME, in Greater China, South Korea, and Japan. Cytovant and MediGene also signed a strategic collaboration and discovery deal for T-cell receptor (TCR) immunotherapies for two more targets. MediGene will handle the generation and delivery of the TCR constructs using its TCR discovery and isolation platform. After the research period is over, Cytovant will take on responsibility for the development and commercialization of the TCR therapies in the relevant countries. The TCRs created by MediGene will be engineered specifically for Asian populations. Under the terms of the Cytovant-MediGene deal, Cytovant will pay MediGene $10 million (U.S.) upfront in addition to various development, regulatory, and commercial milestones that could total over $1 billion (U.S.) for the four products across multiple indications. MediGene will be eligible for royalty payments on net sales of the products in the relevant countries in the low double-digits. Cytovant will also reimburse MediGene’s R&D costs. “T-cell receptors are the scouts of the immune system,” stated Dolores Schendel, MediGene’s chief executive officer and chief scientific officer. “They help T-cells recognize and destroy cancer cells. We use our sophisticated screening system to generate tailored TCR therapies for patient populations with specific genetic characteristics.”
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Roche says $4.3 billion Spark offer still on track for June completion
Roche said its effort to expand in gene therapy via the $4.3 billion takeover of Spark Therapeutics remained on track despite failing to get enough votes to clinch the deal and as U.S. regulators continued scrutinizing it.
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The Swiss company said it was extending its offer to May 2 from the original deadline of Wednesday, having received support from holders of only 29.4 percent of Spark shares. It needs a majority for its offer to go through. A spokesman said Roche remained confident the deal would be completed by the end of June. “All terms and conditions of the offer shall remain unchanged during the extended period,” Roche said in a statement on the $114.50 per share offer it announced in February. Roche also said a review of the acquisition by the U.S. Federal Trade Commission (FTC), the government agency which seeks to prevent anti-competitive practices, was taking more time than anticipated and its plans had had to be refiled. It did not give any further detail on the refiling but said it had been agreed with the FTC and with Spark. "The FTC review and clearance is required for the deal to be completed and needs more time,” a Roche spokesman said. “The deal is not in doubt at all and we expect it will be completed according to our guidance in the first half of 2019. There needs to be more than 50 percent of the shares to be tendered, but we believe our offer to be full and fair and it has been recommended by the board of Spark,” the spokesman added.
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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
21 transactions totaling $2,420 million
Supplies, Equipment & Services
23 transactions totaling $374 million
Healthcare IT & Managed Care
2 transactions totaling $39 million
Healthcare Facilities & Distributors
13 transactions totaling $47 million
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Pharma & Biotech
25 transactions totaling $1,197 million
Supplies, Equipment & Services
10 transactions totaling $22 million
Healthcare IT & Managed Care
10 transactions totaling $39 million
Healthcare Facilities & Distributors
6 transactions totaling $8 million
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Pharma & Biotech
26 transactions totaling $1,038 million
Supplies, Equipment & Services
3 transactions totaling $58 million
Healthcare IT & Managed Care
0 transactions
Healthcare Facilities & Distributors
0 transactions
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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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March 4, 2019 - Reuters
Medacta Group SA priced its flotation at 96 Swiss francs per share, giving the Swiss medical device maker a market capitalization of 1.92 billion Swiss francs ($1.92 billion) at its stock market debut on Thursday.
April 3, 2019 -
Fierce Pharma
With two-thirds of its customers in the U.S., Sterling Pharma Solutions figured it should have a facility there. So the U.K.-based CDMO bought one.
The small molecule API maker
said
this week it has acquired the Cary, North Carolina, location of CiVentiChem, retaining 23 employees and giving Sterling its first U.S. facility and the ability to provide chemical development more easily to its clients.
April 2, 2019 -
Bio Space
Puma Biotech has been a permanent subject of takeover gossip. But whatever M&A hope investors previously had for a buyout, a European Nerlynx licensing deal may have shattered it. The Los Angeles biotech is
licensing
HER2 breast cancer med Nerlynx’s commercialization rights in Europe and part of Africa exclusively to Pierre Fabre for an upfront payment of $60 million, the company said on Monday.
April 1, 2019 -
Fierce Pharma
The Federal Trade Commission has been cracking down on “pay-for-delay" deals across pharma, and Impax Laboratories is the latest company to face a slapdown for violating competition law. The FTC concluded the company entered an illegal “pay-for-delay" deal with Endo to put off copies of opioid painkiller Opana ER.
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MARKET REPORTS
Recent Materials Providing Insight Into Healthcare Related Industries
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April 30 - May 2, 2019 | Chicago, IL, United States
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April 29 - May 5, 2019 | Charlotte, NC, United States
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