Week of July 20th, 2020 | Vol. 9, Issue 29
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 .
Roche is  pay ing  Blueprint Medicines $775 million upfront for rights to RET inhibitor pralsetinib. The deal sets Roche up to compete with Eli Lilly for patients with RET fusion-positive tumors of organs including the lung and thyroid.

Blueprint has filed for approval of pralsetinib in the U.S. and Europe this year on the strength of data linking it to a 91% response rate in RET fusion thyroid cancer. Pralsetinib achieved a 65% response rate in RET fusion-positive non-small cell lung cancer (NSCLC) and a 50% response rate across all RET fusion-positive solid tumors.

The data have persuaded Roche to write a check. Roche is set to pay $675 million in cash and make a $100 million equity investment in Blueprint—at a share price $20 above the biotech’s last close—to seal the deal. Blueprint is also in line to receive up to $927 million in milestones.

In return, Roche will receive an exclusive license to sell pralsetinib outside of the U.S. and China. Roche, through its Genentech unit, will co-promote pralsetinib with Blueprint in the U.S. CStone Pharmaceuticals has the rights to pralsetinib in greater China. The deal sets the stage for a showdown between Roche and Lilly, which acquired a RET inhibitor now sold as Retevmo in its $8 billion takeover of Loxo Oncology. Lilly won FDA approval for Retevmo in the treatment of NSCLC and two types of thyroid cancer in May.

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
6 transactions totaling $162 million
Supplies, Equipment & Services
7 transactions totaling $156 million
Healthcare IT & Managed Care
6 transactions totaling $45 million
Healthcare Facilities & Distributors
15 transactions totaling $353 million
Pharma & Biotech
37 transactions totaling $1,157 million
Supplies, Equipment & Services
32 transactions totaling $323 million
Healthcare IT & Managed Care
17 transactions totaling $264 million
Healthcare Facilities & Distributors
3 transactions
Pharma & Biotech
20 transactions totaling $3,133 million
Supplies, Equipment & Services
11 transactions totaling $771 million
Healthcare IT & Managed Care
1 transaction totaling $24 million
Healthcare Facilities & Distributors
3 transactions totaling $454 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.
July 17, 2020 - BioPharma Dive
France's largest pharmaceutical company is looking for assets to acquire, and may have found a potential target in a California biotech it already knows well.
On Wednesday, Bloomberg reported that Principia Biopharma is among the U.S. biotechs on Sanofi's list of possible acquisitions, citing people familiar with the matter. A Sanofi representative wrote in an email to BioPharma Dive that the company doesn't comment on market rumors or speculation.
Still, the report pushed Principia's share price just past the $84 mark, an almost 15% increase that translated to a $350 million bump in the South San Francisco company's market value. As of Thursday morning, Principia was worth $2.78 billion.

July 14, 2020 - Fierce Pharma
Drugmakers around the world are scrambling to develop a COVID-19 shot, and Emergent BioSolutions has already signed on to help produce doses for some major players. Now, the Gaithersburg, Maryland-based biopharma has scored a contract update to deploy future vaccine doses for a wholly different kind of health crisis. 
On Monday, Emergent BioSolutions said it received a  contract modification  from the Office of the Assistant Secretary for Preparedness and Response—part of the U.S. Department of Health and Human Services—to exercise an option valued at $258 million for extra doses of the company's up-and-coming anthrax vaccine, NuThrax.

July 13, 2020 - Fierce Biotech
The world has changed since Thermo Fisher Scientific reached a hard-fought, $11.5 billion agreement to acquire Qiagen, announced in the first days of March after months of negotiations and public rumors. 
According to  the Financial Times , the New York-based Davidson Kempner said Qiagen should seek a higher price than the €39, or about $43 U.S. per share that it first agreed to. The firm holds a 3% stake in the company, and wrote a letter to Qiagen’s management saying €50 would be more in line with its value.

July 13, 2020 - Fierce Biotech
In its second pharma deal, Dewpoint Therapeutics is  teaming up  with Merck to develop a new way to fight HIV using its molecular condensates platform. The duo kept specifics under wraps, but Dewpoint could net up to $305 million in upfront and milestone payments.
Biomolecular condensates are membraneless organelles whose main job is to surround and contain reactants—such as proteins and nucleic acids—for chemical reactions within cells. Researchers and drug developers have long known about condensates, but they have been “understudied” because they are difficult to analyze with conventional drug discovery methods.
Bourne Partners Corporate Video
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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 Aspen
Sell-side | Pharma Services | Multi-national contract manufacturing and packaging organization

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
Recent Materials Providing Insight Into Healthcare Related Industries