Week of April 22, 2019 | Vol. 8, Issue 16
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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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Contract Drug Manufacturer Catalent to Buy Paragon Bioservices in $1.2 Billion Deal
Contract drug manufacturer Catalent Inc. agreed to buy closely held Paragon Bioservices Inc. for $1.2 billion, according to people familiar with the matter, the latest deal in the emerging market for gene-therapy drugs.
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The all-cash deal, which is expected to be announced Monday morning, would help Catalent expand its gene-therapy manufacturing capabilities, the people said. The transaction is expected to close in the second quarter. Gene therapies aim to replace defective genes with healthy ones. The first was approved in the U.S. in 2017, and dozens more are in development. Researchers say they will become an important option for treating inherited diseases. To prepare for their widespread use, drugmakers and drug-manufacturing contractors have been building manufacturing capabilities, in addition to researching potential therapies. Some analysts say making gene therapies is so complex that many will be made by contract manufacturers. Drug-equipment supplier
Thermo Fisher Scientific
Inc. last month
said it would pay $1.7 billion
for Brammer Bio and its gene-therapy supply capabilities. Paragon provides similar supplies for gene-therapy drugmakers, manufacturing the so-called viral vectors that are used to deliver the gene replacements to their targets. Last week the Baltimore-based company unveiled a 200,000-square-foot manufacturing facility in suburban Maryland. Paragon, which is backed by private-equity firms Camden Partners and NewSpring Capital, is expected to record more than $200 million in revenue this year, according to people familiar with the deal. Catalent, which develops and manufactures drugs for pharmaceutical companies, had about $2.5 billion in sales last year.
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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
20 transactions totaling $262 million
Supplies, Equipment & Services
19 transactions totaling $1,646 million
Healthcare IT & Managed Care
5 transactions totaling $3 million
Healthcare Facilities & Distributors
12 transactions totaling $96 million
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Pharma & Biotech
17 transactions totaling $1,552 million
Supplies, Equipment & Services
16 transactions totaling $165 million
Healthcare IT & Managed Care
8 transactions totaling $56 million
Healthcare Facilities & Distributors
2 transactions totaling $7 million
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Pharma & Biotech
13 transactions totaling $669 million
Supplies, Equipment & Services
4 transactions totaling $27 million
Healthcare IT & Managed Care
1 transaction
Healthcare Facilities & Distributors
1 transaction totaling $130 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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April 18, 2019 - Bio Space
SK
Biopharmaceuticals
, a pharmaceutical company focused on disorders of central nervous system and cancer, and
twoXAR, Inc.
, an artificial intelligence (AI)-driven biopharmaceutical company, today announced an agreement to discover and develop first-in-class therapeutics for non-small cell lung cancer (NSCLC).
April 17, 2019 - Fierce Pharma
Last July, Roche
put a halt
on drug price increases in the U.S. But that didn't stop five of its products from topping analysts' sales estimates by double digits to start the year. New drugs Ocrevus, Hemlibra, Tecentriq, Kadcyla and Perjeta all topped consensus by more than 10% in Q1, Jefferies analysts said Wednesday.
April 16, 2019 -
Bio Space
Less than one year after it was launched, South San Francisco-based insitro has
inked a three-year collaboration
with
Gilead Sciences
to discover and develop therapies for patients with nonalcoholic steatohepatitis (NASH).NASH is one of the primary indications at which Gilead is aiming its R&D pipeline. Last week, the Foster City, Calif. company joined forces with Novo Nordisk to combine medications within their pipelines for treatment of NASH.
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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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