Week of January 20, 2020 | Vol. 9, Issue 3
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
Upcoming Events

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Contact Information
Managing Director
Business Development

Managing Director
Head of M&A and Capital Advisory

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.
Biogen has  placed  another bet on Alzheimer’s disease R&D, paying Pfizer $75 million upfront for an early-phase prospect. The candidate, PF-05251749, came through tests in healthy volunteers at Pfizer before getting derailed by the Big Pharma’s retreat from neuroscience R&D in 2018.

PF-05251749 is a CK1 inhibitor that moved into the clinic on the strength of evidence it can cross the blood-brain barrier and regulate circadian rhythms, thereby improving behavioral and neurological symptoms in patients with diseases including Alzheimer’s. Pfizer gathered clinical data on the drug’s safety and mechanism of action before exiting neuroscience R&D in 2018.

Biogen thinks the data generated to date support further development, leading it to pay $75 million and commit to up to $635 million in development and commercialization milestones to add the drug to its pipeline. 

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.
Pharma & Biotech
19 transactions totaling $2,681 million
Supplies, Equipment & Services
30 transactions totaling $1,276 million
Healthcare IT & Managed Care
15 transactions totaling $732 million
Healthcare Facilities & Distributors
7 transactions totaling $107 million
Pharma & Biotech
24 transactions totaling $496 million
Supplies, Equipment & Services
15 transactions totaling $320 million
Healthcare IT & Managed Care
16 transactions totaling $288 million
Healthcare Facilities & Distributors
1 transactions
Pharma & Biotech
3 transactions totaling $21 million
Supplies, Equipment & Services
1 transaction totaling $14 million
Healthcare IT & Managed Care
0 transactions
Healthcare Facilities & Distributors
0 transactions
A Breakdown of Relevant Trading Multiples
Each week, we provide updated trading comps for leading companies from numerous healthcare sub-sectors.
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.
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.
January 17, 2020 - Contract Pharma
WuXi Biologics  and  Bayer  have entered an acquisition agreement in which WuXi Biologics Germany GmbH will take over the operations of one of Bayer’s final drug product manufacturing plants in Leverkusen, Germany, and purchase the associated equipment, in combination with a long-term lease contract for the building.
Based on a manufacturing agreement to be negotiated, the plant would be operated by WuXi Biologics and serve as a back-up site for the final product manufacturing of Kovaltry, an antihemophilic factor (recombinant). The transaction is expected to be concluded in the coming months subject to the satisfaction of customary closing conditions. Financial details were not disclosed.
January 17, 2020 - BioPharma Dive
Eli Lilly expects to sign one deal worth between $1 billion and $5 billion per quarter in 2020, company chief financial officer Josh Smiley told Reuters, laying out an acquisitive strategy following its $1.1 billion takeover last week of dermatology specialist Dermira.
The pharma's focus will be on clinical-stage or "late preclinical" drugs that can round out its five core therapeutic business, which include oncology, immunology and diabetes, CEO David Ricks told investors Tuesday at the J.P. Morgan Healthcare Conference.
January 13, 2020 - Fierce Biotech
Incyte is set to pay MorphoSys $750 million upfront for rights to anti-CD19 antibody tafasitamab. The licensing  deal , which features a $150 million equity investment and up to $1.1 billion in milestones, gives Incyte a big stake in a near-approval asset that achieved CAR-T-like efficacy in lymphoma patients.
Tafasitamab, also known as MOR208, is the subject of a submission at the FDA in diffuse large B-cell lymphoma (DLBCL) that could see the drug win approval this year. MorphoSys began the filing after linking a combination of tafasitamab and Celgene’s Revlimid to overall and complete response rates of 60% and 43%, respectively.
MorphoSys is still running a study comparing tafasitamab to rituximab to see whether its drug can clear that tougher test and realize a more lucrative commercial opportunity. But Incyte has already seen enough to make a big bet that tafasitamab is the drug to end its wait for a new commercial product. 

Bourne Partners Strategic Capital's New Platform Acquisition: Pharmaceutical Associates, Inc .

Bourne Partners Strategic Capital (“BPSC”) is excited to announce the acquisition of Pharmaceutical Associates, Inc ("PAI"). The transaction was completed in partnership with Enhanced Healthcare Partners. 

Click below to read the full press release
Please do not hesitate to contact Minor Hinson (mhinson@bourne-partners.com or 704.714.8356) with any questions, thoughts and ideas regarding PAI or any of our other investments.
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Since our founding in 2001, Bourne Partners has remained focused on fulfilling the unique needs of established, middle-market healthcare and pharmaceutical companies across the globe. Our track record includes advising middle market companies in healthcare M&A assignments totaling more than $7 billion, and growing companies into successful and well-positioned pharmaceutical enterprises.
Current M&A Pipeline
Representative Current Retained Sell-Side And Partnering Opportunities
Project Capture
Sell-side | Consumer Health | Prescription drug disposal and opioid abuse deterrent solution

Project Athena
Sell-side | Medical Device | Novel medical device for the treatment of pelvic organ prolapse

Project Jaguar
Asset Divestiture | Generic Pharma | Basket of ANDAs

Project Vista
Out-partnering | Pharma | Seeking commercial partner for novel, liquid-format riluzole treatment of ALS

Project Seal
Buy-side | Pharma | Seeking Pain and CNS products as well as legacy/tail commercial pharma assets

Project Vintage
Asset Divestiture | Generic Pharma | Numerous therapeutic categories
Recent Materials Providing Insight Into Healthcare Related Industries