Week of January 13, 2020 | Vol. 9, Issue 2
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
Upcoming Events

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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.
Eli Lilly made a splash last year at the start of the J.P. Morgan Healthcare Conference with its $8 billion purchase of Loxo Oncology, which set the tone for an M&A frenzy in biopharma that continued all year. The Loxo deal also sparked speculation that Lilly itself would continue to snap up oncology assets.

Well, with the 2020 J.P. Morgan confab around the corner, Lilly is back in the M&A game—but this time it’s making a play in dermatology.

Lilly  said  Friday it would buy Dermira for $1.1 billion, or $18.75 a share, a 2% premium to the target’s closing price on Thursday but more than double the value at which it was trading a month ago. Dermira has one marketed product,  Qbrexza , a medicated cloth to treat excessive underarm sweating, and a pipeline that includes the phase 3 atopic dermatitis drug lebrikizumab.

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
21 transactions totaling $182 million
Supplies, Equipment & Services
30 transactions totaling $238 million
Healthcare IT & Managed Care
9 transactions totaling $1,363 million
Healthcare Facilities & Distributors
14 transactions totaling $140 million
Pharma & Biotech
22 transactions totaling $731 million
Supplies, Equipment & Services
22 transactions totaling $282 million
Healthcare IT & Managed Care
10 transactions totaling $155 million
Healthcare Facilities & Distributors
0 transactions
Pharma & Biotech
12 transactions totaling $764 million
Supplies, Equipment & Services
0 transactions
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.
January 10, 2020 - Fierce Biotech
As Amunix zeroes in on developing its own pipeline of cancer drugs, the company is  licensing  its platform, which lengthens the half-life of drugs, to Roche for $40 million upfront. The Swiss pharma will use it to discover and develop new drugs outside the realm of cancer. 
The deal is heavily backloaded, as has become custom, with up to $1.5 billion in development and sales milestones. Details are slim, with Amunix saying only that Roche will work on “non-oncology therapeutics against undisclosed targets.” The duo initially  teamed up  in 2013 so Roche could evaluate Amunix’s XTEN technology, an unstructured polypeptide, to extend the half-life of drugs in the body. 
January 8, 2020 - Fierce Pharma
Less than a year after buying a U.S. plant from AstraZeneca, Novartis’ biotech AveXis has it ready for production of Zolgensma, its gene therapy for spinal muscular atrophy. The new plant will help it get the treatment for the rare genetic disease to more patients. It also is building a plant in North Carolina that is expected to open this year.  
January 7, 2020 - Fierce Biotech
AstraZeneca has  teamed u p  with MiNA Therapeutics to test small activating RNA (saRNA) molecules in metabolic diseases. The agreement gives AstraZeneca the option to negotiate a license for saRNA molecules after getting a look at preclinical data on the candidates. 
London-based MiNA is built upon a platform designed to uncover and advance small oligonucleotide drugs that activate genes. The candidates are similar to RNA drugs developed by companies such as Alnylam. But rather than silence genes to suppress protein production, MiNA’s drugs activate genes to upregulate intracellular or secreted proteins. 
January 6, 2020 - BioPharma Dive
Merck & Co paid $50 million to Otsuka subsidiaries Astex Pharmaceuticals and Taiho Pharmaceutical to collaborate on targeted cancer drugs, including KRAS inhibitors. Merck is joining a race with Amgen, Mirati Therapeutics, Johnson & Johnson and Eli Lilly to develop agents aimed at KRAS-mutated tumors.
Merck will fund research and development of experimental drugs in the collaboration, and will be in charge of global commercialization. Astex and Taiho would be eligible for up to $2.5 billion in payments in addition to royalties on marketed products.

Bourne Partners Strategic Capital's New Platform Acquisition: Pharmaceutical Associates, Inc .

Bourne Partners Strategic Capital (“BPSC”) is excited to announce the acquisition of Pharmaceutical Associates, Inc ("PAI"). The transaction was completed in partnership with Enhanced Healthcare Partners. 

Click below to read the full press release
Please do not hesitate to contact Minor Hinson (mhinson@bourne-partners.com or 704.714.8356) with any questions, thoughts and ideas regarding PAI or any of our other investments.
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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 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 Jaguar
Asset Divestiture | Generic Pharma | Basket of ANDAs

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 Vintage
Asset Divestiture | Generic Pharma | Numerous therapeutic categories
Recent Materials Providing Insight Into Healthcare Related Industries