Week of April 1, 2019 | Vol. 8, Issue 13
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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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AstraZeneca Inks Ambitious $6.9B Deal for Daiichi Cancer Therapy
AstraZeneca will pay $1.35 billion upfront for partial rights to an experimental cancer therapy in an ambitious licensing deal that represents one of the largest bets the pharma has made on an externally developed medicine.
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Long known for its prowess in cardiovascular and respiratory diseases, AstraZeneca has joined its pharmaceutical peers in making a bigger play in oncology. While the British drugmaker has lagged in cancer immunotherapy, its medicines Tagrisso and Lynparza have quickly become leading therapies for certain types of lung and ovarian cancers, respectively. Fast growing sales of Tagrisso, for instance, could make the drug AstraZeneca's top-seller this year — an achievement helped by falling revenues from the current title holder, the respiratory treatment Symbicort. AstraZeneca's collaboration with Daiichi Sankyo, meanwhile, significantly escalates the company's investment in cancer. Per deal terms, AstraZeneca will pay half of the $1.35 billion in upfront money at execution, with the rest payable one year later. Daiichi Sankyo stands to earn as much as $3.8 billion for achieving future regulatory and other milestones, plus another $1.75 billion in contingent payments tied to potential sales of trastuzumab deruxtecan.
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Thermo Fisher to Acquire Brammer Bio in $1.7 Billion Deal
Thermo Fisher Scientific Inc, the world's largest maker of scientific instruments, said on Sunday it has agreed to buy Brammer Bio in a roughly $1.7 billion cash deal.
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Brammer Bio, a viral vector manufacturer for gene and cell therapies, is expected to post $250 million in revenue for 2019, Thermo Fisher said in a statement. “Brammer Bio will be an exciting addition to our pharma services business and will further strengthen Thermo Fisher’s leadership in serving pharma and biotech customers,” said Thermo Fisher President and Chief Executive Marc N. Casper. Brammer, which has almost 600 employees, is owned by its founders and private equity firm Ampersand Capital Partners. Thermo Fisher said it expects to complete the transaction by the end of the second quarter. Thermo Fisher’s stock is up around 18 percent so far in 2019, giving it a market capitalization of just over $105 billion, according to Refinitiv data.
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U.S. Health Insurer Centene to Buy Smaller Rival WellCare for $15.3 billion
U.S. health insurer Centene Corp on Wednesday said it would buy smaller rival WellCare Health Plans Inc for $15.27 billion in stock and cash
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Shares of WellCare jumped 9.8 percent to $253.98. Centene shares fell about 7.5 percent to 50.71. The announcement comes days after the Trump administration stepped up its opposition to former President Barack Obama’s signature healthcare law. The Department of Justice (DOJ) on Monday said it believes the Affordable Care Act (ACA), popularly known as Obamacare, violated the U.S. Constitution and that the law should be struck down. Centene relies on its Obamacare business for about 40 percent of its earnings, making it among the most vulnerable companies should the law be overturned, according to SVB Leerink analyst Ana Gupte. The combined company will have 22 million members, up from around 14 million for Centene at the end of 2018. “The more we can grow in this area, the better the recipients are, the better for the investors ... And there are other very large competitors out there,” Centene Chief Executive Michael Neidorff said on a conference call. Neidorff will remain CEO of the combined company.
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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
10 transactions totaling $1,822 million
Supplies, Equipment & Services
12 transactions totaling $35 million
Healthcare IT & Managed Care
8 transactions totaling $15,631 million
Healthcare Facilities & Distributors
4 transactions totaling $33 million
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Pharma & Biotech
28 transactions totaling $226 million
Supplies, Equipment & Services
18 transactions totaling $177 million
Healthcare IT & Managed Care
10 transactions totaling $42 million
Healthcare Facilities & Distributors
3 transactions
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Pharma & Biotech
19 transactions totaling $793 million
Supplies, Equipment & Services
6 transactions totaling $679 million
Healthcare IT & Managed Care
0 transaction
Healthcare Facilities & Distributors
1 transaction totaling $706 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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March 29, 2019 -
BioPharma Dive
Bristol-Myers Squibb has struck a multi-year deal with Boston-based Concerto HealthAI to use artificial intelligence and real-world data to improve how it designs and conducts cancer drug studies.
March 28, 2019 -
Fierce Pharma
The drugmaker says the five-year plan will expand and upgrade the facility in Aubonne, to make drugs including fertility treatment Gonal-f as well as Bavencio, the immunotherapy it shares with Pfizer, and bintrafusp alfa, a new I-O cancer drug candidate it will develop with GlaxoSmithKline.
March 27, 2019 -
Fierce Pharma
Health and corrections officials in Louisiana are one step closer to treating thousands of hepatitis C patients who previously haven't had access to the latest drugs. The state chose Gilead Sciences’ new generics business, Asegua Therapeutics, to team up on its “Netflix” subscription model for unlimited access to an authorized Epclusa copycat.
March 26, 2019 -
Bio Space
Ichor® Medical Systems, Inc.
(Ichor) announced today that it has entered into a collaboration and research license agreement with
AstraZeneca
(LSE, SSE, NYSE: AZN) for the development and clinical assessment of plasmid DNA constructs.
March 25, 2019 -
Bio Space
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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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