Week of May 20, 2019 | Vol. 8, Issue 20
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
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.
Nestle Plans $10B Skincare Sale to EQT Partners
The unit had 2018 revenue of $2.77 billion.
Nestle SA  has entered exclusive talks to sell its skincare business to a group led by  EQT Partners  for 10.2 billion Swiss francs ($10.1 billion) in what would be one of the biggest private-equity deals this year. The discussions with the consortium, which is co-led by the Abu Dhabi Investment Authority, are  moving ahead  as the world’s largest food company wraps up a hotly contested sale process for its Cetaphil moisturizers and Proactiv acne treatments. In Nestle’s biggest divestment in more than a decade, Chief Executive Officer Mark Schneider is dismantling a business that his predecessor, Chairman Paul Bulcke, touted as a promising new avenue just years ago. Schneider has instead been focusing on products such as coffee, water and pet food as Nestle works to spur sales and revamp  growth . A deal would be the second major transaction for EQT, the Nordic region’s biggest private equity firm, this month.

 C ontinue Reading at Bloomberg .
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 $345 million
Supplies, Equipment & Services
23 transactions totaling $38 million
Healthcare IT & Managed Care
4 transactions
Healthcare Facilities & Distributors
12 transactions totaling $104 million
Pharma & Biotech
25 transactions totaling $949 million
Supplies, Equipment & Services
16 transactions totaling $81million
Healthcare IT & Managed Care
14 transactions totaling $237 million
Healthcare Facilities & Distributors
7 transactions totaling $24 million
Pharma & Biotech
17 transactions totaling $878 million
Supplies, Equipment & Services
10 transactions totaling $2,954 million
Healthcare IT & Managed Care
2 transactions
Healthcare Facilities & Distributors
3 transactions totaling $613 million
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 17, 2019 - Fierce Biotech
Genentech has teamed up with Parvus Therapeutics to develop immune tolerance drugs. The Roche subsidiary put together an $800 million-plus  deal  to work with Parvus on drugs to treat autoimmune diseases.

May 17, 2019 - Fierce Pharma
A biologics arms race of sorts appears to be shaping up in South Korea. Celltrion Chairman Seo Jung-jin said on Thursday that the conglomerate will spend about $33.6 billion on its pharma business over the next decade. The pledge comes just months after competitor Samsung said it will spend $22 billion in much the same way.

May 15, 2019 - The Wall Street Journal
The administration is strongly interested in forcing insurers to publicize the negotiated rates they pay for services. The requirement could affect insurers providing coverage in the private-employer market, where about 158 million people get their health insurance.

May 15, 2019 - Fierce Pharma
After snagging the first Japanese CAR-T approval in March, Novartis has won the go-ahead to sell its groundbreaking med, Kymriah, under the country’s national insurance system. And that gives the brand a chance to boost lagging sales. The price makes Kymriah the  most expensive  treatment offered by the Japanese public insurance system.

May 15, 2019 - Fierce Biotech
Vertex Pharmaceuticals is paying $70 million upfront to work with Kymera Therapeutics on the discovery of drugs that drive the elimination of disease-causing proteins. The early-stage  deal features more than $1 billion in milestones tied to the success of six programs.

May 13, 2019 - Fierce Biotech
The idea is to provide a centralized R&D and manufacturing team for its portfolio companies to bring cell and gene therapies “from bench to bedside." ElevateBio is partnering with academic researchers, medical centers and entrepreneurs to create those companies. 

May 13, 2019 - Bio Pharma Dive
Bayer plans on spending $150 million to create a new 40,000-square-foot facility for biologics development and manufacturing. The Cell Culture Technology Center will be  built on  Bayer's campus in Berkeley, California, and focus primarily on biologic therapies for oncology, cardiology and additional specialty care areas.
Recent Materials Providing Insight Into Healthcare Related Industries
May 2019