Week of May 18th, 2020 | Vol. 9, Issue 20
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 .
After scoring an early authorization for its COVID-19 therapy remdesivir, Gilead Sciences has been on the hunt for manufacturing partners to help boost production. Through a series of licensing agreements with generics makers, Gilead has taken the first steps to build that network. 

Gilead  signed  nonexclusive licensing agreements with five generic drug makers operating in India and Pakistan to produce COVID-19 therapy remdesivir for 127 countries, the drugmaker said. 

Gilead will work with Cipla, Mylan, Ferozsons Laboratories, Hetero Labs and Jubilant Lifesciences to manufacture the drug primarily for low- and lower-middle income countries. The list also includes higher-income countries "that face significant obstacles to healthcare access," Gilead said.

Under the agreements, Gilead will share its manufacturing know-how with the five companies to help them gear up remdesivir production. Each company will be allowed to set the price for its own generic version of the drug.

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 $582 million
Supplies, Equipment & Services
16 transactions totaling $1,827 million
Healthcare IT & Managed Care
4 transactions
Healthcare Facilities & Distributors
7 transactions totaling $76 million
Pharma & Biotech
23 transactions totaling $530 million
Supplies, Equipment & Services
17 transactions totaling $372 million
Healthcare IT & Managed Care
14 transactions totaling $47 million
Healthcare Facilities & Distributors
4 transaction totaling $141 million
Pharma & Biotech
27 transactions totaling $4,031 million
Supplies, Equipment & Services
13 transactions totaling $4,944 million
Healthcare IT & Managed Care
5 transactions totaling $4,897 million
Healthcare Facilities & Distributors
6 transactions totaling $1,120 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 15, 2020 - Fierce Pharma
Gilead Sciences had barely rushed its COVID-19 drug remdesivir into mass production when it started touting the potential benefits of alternate formulations of the IV drug, including an inhaler that moderately ill patients could use at home. The company says it’s already working on developing inhaled remdesivir as well as a version that could be injected under the skin.
But for those easy-to-administer renditions of remdesivir to contribute to Gilead’s top line, the company will first have to demonstrate the drug makes a meaningful impact on moderately ill patients—and that won’t be easy, JPMorgan analyst Cory Kasimov warned investors in a note earlier this week.
In fact, Kasimov said, “remdesivir is unlikely to result in tangible long-term cash flows,” and the expected $5 billion short-term boost to sales from the drug will have a “marginal impact” on the company’s valuation going forward, Kasimov added.

May 13, 2020 - BioPharma Dive
Instruments maker Thermo Fisher plans to spend $180 million to build a 290,000-square-foot site that will double capacity to make viral vectors, the inactivated viruses used to convey gene therapies into human cells. The contract development and manufacturing organization plans to complete work on the facility in Plainville, Massachusetts, in 2022 and add more than 200 jobs.
Thermo's investment is the latest in a series of expansions designed to meet growing demand for gene therapies and vaccines, the company said in a May 11 statement.

May 12, 2020 - Fierce Biotech
In what will be of little surprise to anyone, the FDA has hitched its fast-track tag to Moderna’s speedy attempt at an mRNA COVID-19 vaccine.
The  label , which aims to help speed up the time a new drug or vaccine takes to hurdle the normal regulatory barriers, is specifically for mRNA-1273, which is hoping for a phase 3 summer trial to assess whether it can protect people from COVID-19.  
“Fast Track designation underscores the urgent need for a vaccine against the novel coronavirus,” said Tal Zaks, M.D., Ph.D., chief medical officer at Moderna. “As we await the full set of clinical data from the NIAID-led phase 1 study, we are actively preparing for our phase 2 and phase 3 clinical studies to continue learning about the potential of mRNA-1273 to protect against SARS-CoV-2.”

May 11, 2020 - Fierce Pharma
After winning a small grant for early vaccine work in March, Novavax just won the largest-ever investment from CEPI, a global coalition aiding COVID-19 vaccine development. 
The grant of up to $384 million from the Coalition for Epidemic Preparedness Innovations will fund Novavax’s COVID-19 vaccine testing through phase 2, plus early work to scale-up manufacturing. The funding follows a $4 million award back in March. 
The Maryland biotech will use the funds to conduct a phase 1/2 trial on its candidate, NVX-COV2373, starting with the phase 1 portion in Australia this month. After phase 1 results—expected in July—the phase 2 portion is slated for multiple countries, Novavax said.

May 11, 2020 - Fierce Pharma
Pfizer has dedicated enormous resources to churning out hundreds of millions of doses of a possible COVID-19 vaccine. But that massive effort requires a trade-off: Pfizer will have a hard time meeting production goals for its existing meds and will look to its contractor network to help keep up. 
Pfizer plans to outsource production of some of its drug portfolio to make way for a rapidly growing vaccine manufacturing effort, the company said Monday.
The drugmaker will lean on its 200-strong network of contractors as part of a plan to "build a robust U.S.-based supply chain as well as one based in Europe," a Pfizer spokesperson said.
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 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

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