Week of Aug 26, 2019 | Vol. 8, Issue 34
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

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.
Elanco to become No.2 in animal health with $7.6 billion Bayer deal
Elanco Animal Health ( ELAN.N ) agreed to buy Bayer’s ( BAYGn.DE ) veterinary drugs unit on Tuesday in a cash and stock deal valued at $7.6 billion, creating the second largest maker of medicines for pets and livestock and expanding Elanco’s reach online.

The deal is the latest in the fast-growing animal health market, which has recently seen Elanco floated by Eli Lilly and Co ( LLY.N ) and rival U.S. drugmaker Pfizer ( PFE.N ) also spinning off its veterinary medicine business.

It also adds to the list of assets sold by Bayer, as the German company looks to slash debt from its $63 billion takeover of seed maker Monsanto last year and as it braces for a potential settlement of lawsuits over an alleged cancer-causing effect of weedkiller Roundup.

The two companies said Bayer would receive $5.3 billion in cash and $2.3 billion worth of Elanco stock based on a price of $33.60 per share, the 30-day average price as of Aug. 6.

Read more at Reuters
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
10 transactions totaling $8,335 million
Supplies, Equipment & Services
16 transactions totaling $122 million
Healthcare IT & Managed Care
3 transactions
Healthcare Facilities & Distributors
10 transactions totaling $370 million
Pharma & Biotech
26 transactions totaling $642 million
Supplies, Equipment & Services
9 transactions totaling $9 million
Healthcare IT & Managed Care
7 transactions totaling $55 million
Healthcare Facilities & Distributors
2 transactions
Pharma & Biotech
8 transactions totaling $391 million
Supplies, Equipment & Services
9 transactions totaling $301 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.
August 19, 2019 - Fierce Biotech
SpringWorks Therapeutics has  filed  to raise $115 million in an IPO. The money will take SpringWorks through to regulatory filings for two former Pfizer drugs against rare tumors. Pfizer licensed the drugs, gamma secretase inhibitor nirogacestat and MEK inhibitor mirdametinib, to SpringWorks in 2017. SpringWorks, which was conceived by Pfizer, raised $103 million from backers including Bain Capital in conjunction with the four-asset licensing deal before adding another $125 million to its coffers in April through a series B round.

August 20, 2019 - Fierce Pharma
The carcass of pain drug wheeler-dealer Insys Therapeutics is being pieced off in bankruptcy court, and Hikma Pharmaceuticals says it has picked up some of those pieces. The drugmaker has laid out $12.2 million for a couple nasal spray drugs and the equipment and know-how to manufacture them. According to Hikma, it grabbed unit-dose nasal and sublingual spray manufacturing equipment as well as pipeline products of epinephrine and naloxone nasal sprays. Naloxone is used to counter opioid overdoses. Hikma said the products were just what the doctor ordered. 

August 21, 2019 - BioPharma Dive
Pfizer intends to spend $500 million expanding its gene therapy operations in North Carolina, the latest big pharma investment in the burgeoning technology. The money will go toward building a new manufacturing facility in Sanford, a small city about 50 miles outside of Raleigh, North Carolina. The facility will create about 300 jobs, according to Pfizer, and be responsible for making the recombinant adeno-associated viral vectors needed to supply clinical- and commercial-stage gene therapies. Pfizer has three gene therapies in clinical testing. One, which it got through the $150 million acquisition of Bamboo Therapeutics, targets a rare muscular disorder. The other two are partnered programs going after hemophilia.

August 21, 2019 - Fierce Pharma
Endo’s $10 million opioid deal with two Ohio counties Tuesday may have appeared small in scope to some, but could the bellwether agreement spell a sigh of relief for the industry on the whole? Investors and analysts seem to think so.

August 22, 2019 - Fierce Pharma
Neopharma, which has been buying and building plants for several years, is at it again. The United Arab Emirates-based drugmaker is buying a sterile injectables plant and drugs in Japan from India’s Lupin. Lupin  announced  the deal today, saying that it was selling the facility and assets held through its Japanese subsidiary Kyowa. Details were few, but the plant is based in Atsugi, Japan, and does contract work as well as sell its own products. Financial terms were not disclosed.
Recent Materials Providing Insight Into Healthcare Related Industries
August 2019
July 2019