Week of May 13, 2019 | Vol. 8, Issue 19
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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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Takeda offloads dry eye drug to Novartis for $3.4B
The deal is expected to close in the second half of this year.
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Takeda and Novartis see their eye drug businesses going in two different directions.For the former, ophthalmology isn't a priority. Takeda suggested as much in announcing its Shire acquisition, noting how 75% of the combined company's sales would come from five areas: oncology, gastroenterology, rare diseases, neuroscience and plasma-derived therapies. Takeda reaffirmed its dedication to those areas by selling Xiidra (lifitegrast), which came concurrently with the announcement that Johnson & Johnson's Ethicon subsidiary will buy Takeda's TachoSil surgical patch for approximately $400 million. The two transactions, both in cash, will help pay down the
massive debt burden
created by the Shire takeover. "These initial divestitures represent important steps in advancing the growth strategy Takeda outlined following our transformational acquisition of Shire earlier this year," CEO Christophe Weber said in a May 8 release.
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Premier selling specialty pharmacy business to CVS Health
The Charlotte, N.C.-based healthcare improvement company serves 367 hospitals across 66 health systems.
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The company plans to sell its specialty pharmacy business, which currently serves 367 hospitals across 66 health systems, to a CVS Health subsidiary for $22.5 million plus up to $20 million for inventory. The companies expect to close the deal by June 30. "What drove us to this place of moving specialty pharmacy was the market dynamics that have significantly changed since we undertook the strategy," Premier President Michael Alkire said on the company's earnings call Tuesday. "We just thought at this point in time it was in the best interest of growing the overall business and creating long-term shareholder value by selling the assets." Increases in the so-called direct and indirect remuneration, or DIR, fees that pharmacy benefit managers charge pharmacies have made specialty pharmacy an increasingly tough business, some analysts said. Premier didn't directly call out DIR fees in its news release, and a spokeswoman declined to say whether the fees contributed to the decision.
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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
18 transactions totaling $6,863 million
Supplies, Equipment & Services
18 transactions totaling $475 million
Healthcare IT & Managed Care
4 transactions totaling $6 million
Healthcare Facilities & Distributors
12 transactions totaling $1,290 million
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Pharma & Biotech
20 transactions totaling $188 million
Supplies, Equipment & Services
23 transactions totaling $351 million
Healthcare IT & Managed Care
9 transactions totaling $75 million
Healthcare Facilities & Distributors
1 transaction totaling $1 million
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Pharma & Biotech
18 transactions totaling $2,766 million
Supplies, Equipment & Services
7 transactions totaling $1,690 million
Healthcare IT & Managed Care
1 transaction totaling $22 million
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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May 9, 2019 - Fierce Biotech
Boston Scientific has moved to acquire Vertiflex, maker of a minimally invasive vertebrae spacer for treating lumbar stenosis, or the painful narrowing of the open spaces within the lower spinal column. The deal includes $465 million upfront plus a commitment to additional commercial milestone payments over the next three years to the private, Carlsbad, California-based company.
May 8, 2019 - Fierce Pharma
Bristol-Myers Squibb is taking on a debt load to cover its $74 billion Celgene buyout, and it issued $19 billion in bonds Tuesday to help pay the bill.
May 7, 2019 - The Wall Street Journal
Tennessee is moving toward becoming the first state to convert its Medicaid program to a block grant, opening up a new front in conservatives’ efforts to give states more flexibility over the health program while also raising concerns about potential cuts in coverage.
May 6, 2019 - Bio Pharma Dive
The Food and Drug Administration on Monday
approved
Pfizer's drug Vyndaqel as well as a separate dosage form called Vyndamax for cardiomyopathy tied to the rare disease transthyretin-mediated amyloidosis. The decision deadline for Vyndaqel was in July and Vyndamax was in November.
May 6, 2019 - Bio Space
With a
$250 million cash down payment
, Denmark’s
H. Lundbeck A/S
snapped up San Diego-based
Abide Therapeutics
to gain a novel discovery platform and a U.S.-based research hub. What attracted Lundbeck to acquiring Abide is that company’s lead molecule, ABX-1431. Abide’s ABX-1431 is a potent selective inhibitor of the serine hydrolase monoacylglycerol lipase (MGLL).
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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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