Week of June 1st, 2020 | Vol. 9, Issue 22
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports (See below)
Upcoming Events

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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.

For more information about our consumer healthcare JV with The Emerson Group, Daybreak Consumer Care, click here .
Gilead Sciences  and  Arcus Biosciences  have entered into a 10-year partnership valued at nearly $2 billion to co-develop and co-commercialize current and future therapeutic product candidates in Arcus’s pipeline. The agreement will also provide ongoing funding to support Arcus’s research and development programs.
Arcus is building an extensive and diverse portfolio of investigational products that target important mechanisms involved in tumor evasion of the immune system, as well as developing drug candidates that target cell-intrinsic pathways important for cancer growth and metastasis. In addition to small molecule products, Arcus is also advancing antibody products that target immune checkpoint receptors, including PD-1 and TIGIT.

Arcus will receive $375 million upon closing, consisting of a $175 million upfront payment and a $200 million equity investment from Gilead. Arcus is eligible to receive up to $1.225 billion in opt-in and milestone payments with respect to its current clinical product candidates. Gilead will gain access to Arcus’s current and future investigational immuno-oncology products through the agreement, as Gilead continues to expand its presence in the field. This includes immediate rights to zimberelimab, as well as the right to opt-in to all other current Arcus clinical candidates, which include AB154, AB928 and AB680, upon payment of an opt-in fee that ranges from $200 million to $275 million per program, after delivery of a qualifying data package. If Gilead opts-in to the AB154 program, Arcus is eligible to receive up to $500 million in potential future U.S. regulatory approval milestones.

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
15 transactions totaling $748 million
Supplies, Equipment & Services
16 transactions totaling $138 million
Healthcare IT & Managed Care
2 transactions totaling $28 million
Healthcare Facilities & Distributors
5 transactions totaling $607 million
Pharma & Biotech
42 transactions totaling $763 million
Supplies, Equipment & Services
17 transactions totaling $1,098 million
Healthcare IT & Managed Care
14 transactions totaling $122 million
Healthcare Facilities & Distributors
1 transaction
Pharma & Biotech
30 transactions totaling $9,423 million
Supplies, Equipment & Services
19 transactions totaling $5,189 million
Healthcare IT & Managed Care
1 transactions totaling $15 million
Healthcare Facilities & Distributors
0 transaction
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.
May 29, 2020 - BioPharma Dive
In Alzheimer's disease research, the lion's share of time and resources has gone toward a protein called amyloid, which many have believed to be the root cause of patients' declining brain function. But there's another protein, tau, that has drawn interest as well. Investigating tau-targeting drugs may soon be easier too, as the Food and Drug Administration on Thursday approved an imaging agent that shows how much tau is in a patient's brain.
While amyloid imaging drugs are already on the market, Thursday's approval was the first one for tau. The FDA cleared Tauvid, developed by Eli Lilly-owned Avid Radiopharmaceuticals, as a way to estimate the size and spread of tau protein clusters, sometimes referred to as tau tangles. The agency specified that Tauvid is to be used in positron emission tomography brain imaging for patients being evaluated for Alzheimer's, and not other conditions such as chronic traumatic encephalopathy.

May 28, 2020 - Fierce Pharma
GlaxoSmithKline has penned deals offering its pandemic vaccine adjuvant to several developers of COVID-19 shots. And it needs to amp up supply for those companies to make enough doses of their final products.
Now, the British pharma said it will  make 1 billion doses  of the adjuvant, dubbed AS03, in 2021 for use in multiple COVID-19 vaccine candidates.
Theoretically, the adjuvant can increase the body’s immune response to the vaccine component it’s paired with, reducing the amount of vaccine needed for each shot and allowing manufacturers to make more doses.

May 28, 2020 - BioPharma Dive
Maryland-based Novavax has bought Praha Vaccines for $167 million, an acquisition that gives the company a biologics manufacturing facility in the Czech Republic.
The move is meant to help Novavax keep pace with larger coronavirus vaccine developers, which are scaling up their manufacturing capabilities as human tests begin. According to the company, Praha’s plant in Bohumil should be able to produce 1 billion yearly doses of antigen for Novavax's experimental vaccine, known as NVX-CoV2373.
The Novavax COVID-19 vaccine is one of at least 10 currently in clinical trials. An Australian study evaluating the safety and immune responses generated by two versions of the vaccine in about 130 healthy people began enrolling patients this week and should yield results in July. Participants will get two injections, 21 days apart.

May 26, 2020 - Fierce Pharma
Sanofi and Regeneron unveiled plans last year to restructure their longstanding partnership, and now there are bigger changes afoot, for Sanofi at least: The French drugmaker aims to sell most of its massive stake in its biotech partner.
Sanofi  detailed plans  to unload about 22.8 million Regeneron shares, a stake worth some $13 billion. The sale would put a big chunk of cash into Sanofi's coffers—and at CEO Paul Hudson's disposal for potential dealmaking.
Bourne Partners Corporate Video
Welcome to Bourne, let's talk.

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 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 Olympus
Sell-side | Pharma | Portfolio of generic injectable products

Other Opportunities:
What: Turn key specialty pharmacy licensed in all 50 states
  • Contracts with key payers 
  • Ideal platform for specialty products pharma company that seeks to manage distribution for their products in-house
  • Current pharmacy business supports overhead of high performance pharmacist team, current RX business can be moved to other pharmacies if buyer seeks to exclusively distribute an in-house product
For more details contact rstanley@bourne-partners.com
Recent Materials Providing Insight Into Healthcare Related Industries