Week of Sept 9, 2019 | Vol. 8, Issue 36
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.
Vertex said Tuesday it will pay $950 million in cash for a preclinical biotech researching a cure for Type 1 diabetes.
Since its 2014 founding, Semma Therapeutics has worked on a stem cell-based therapy for Type 1 diabetes, publishing preclinical proof-of-concept data earlier this year. Semma's drug-device combination aims to restore insulin secretion by producing large quantities of pancreatic beta cells, while using a device to protect those cells from an immune response.

Acquiring Semma gives Vertex an immediate, albeit preclinical, presence in diabetes.
David Altshuler, the chief scientific officer for Vertex, said the private biotech's approach could address the causal human biology of Type 1 diabetes.

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
14 transactions totaling $1,207 million
Supplies, Equipment & Services
16 transactions totaling $517 million
Healthcare IT & Managed Care
5 transactions totaling $18 million
Healthcare Facilities & Distributors
16 transactions totaling $364 million
Pharma & Biotech
21 transactions totaling $532 million
Supplies, Equipment & Services
15 transactions totaling $80 million
Healthcare IT & Managed Care
8 transactions totaling $174 million
Healthcare Facilities & Distributors
2 transactions totaling $11 million
Pharma & Biotech
12 transactions totaling $689 million
Supplies, Equipment & Services
13 transactions totaling $996 million
Healthcare IT & Managed Care
3 transactions totaling $820 million
Healthcare Facilities & Distributors
2 transactions totaling $1,463 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.
September 6, 2019 - Contract Pharma
Pharmaceutical development and clinical manufacturing company, Velesco Pharma, is set to triple its clinical manufacturing capacity with the purchase and fit-out of a new, state-of-the-art facility in Wixom, MI. The new building will feature expanded processing suite space to provide enhanced cGMP clinical trial material capabilities. This facility will be supported by Velesco Pharma’s existing QC release and stability testing laboratory also located in Wixom. It will replace and consolidate the company’s existing manufacturing site in Kalamazoo, MI.

September 5, 2019 - Outsourcing Pharma
The acquisition of Bioclinica’s clinical research site business extends PPD’s trial enrollment business to five continents, 20 countries, and more than 180 research sites.

September 4, 2019 - Fierce Pharma
South Korea’s JW Pharmaceutical has a plan to target emerging markets and has started by snapping up a plant in Vietnam once owned by Valeant. The Seoul-based drugmaker has acquired Euvipharm, getting a 35,000-square-meter manufacturing facility in the deal, Korea Biomedical Review  reports . Terms of the deal were not disclosed. "This acquisition has enabled us to secure a large-scale plant with advanced technology and modern equipment in the emerging manufacturing powerhouse of Vietnam," JW Pharmaceutical CEO Shin Yeong-seop said in a statement reported by Korea Biomedical. "We will try to spread the JW brand in the global market, starting with Vietnam."

September 2, 2019 - Outsourcing Pharma
Chr. Hansen and Lonza name their joint venture CDMO for live biotherapeutics and ready the launch after receiving antitrust approvals.

Recent Materials Providing Insight Into Healthcare Related Industries
August 2019
August 2019