Week of November 18, 2019 | Vol. 8, Issue 47
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.
Novartis’ Sandoz has yet to nail down its generics selloff to Aurobindo Pharma, but that hasn't stopped it from pursuing deals outside the troublesome U.S. market.
The Novartis generics unit has penned a deal to buy Aspen Pharmacare subsidiary Aspen Global’s Japanese operations for up to €400 million ($442 million).
“The acquisition of Aspen’s Japanese operations would significantly strengthen our position in this country, a stable but growing generics market,” Sandoz CEO Richard Saynor said in a Monday statement.
Altogether, about 20 off-patent drugs that raked in ZAR 2.1 billion ($141 million) in revenue for the fiscal year ended in June will land in Sandoz’s pocket once the two wrap up the deal, which is expected in the first half of 2020. These primarily encompass anesthetics and specialty brands, such as topical drug Xylocaine (lidocaine) and organ rejection prevention med Imuran (azathioprine).

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
20 transactions totaling $1,216 million
Supplies, Equipment & Services
24 transactions totaling $714 million
Healthcare IT & Managed Care
4 transactions totaling $43 million
Healthcare Facilities & Distributors
19 transactions totaling $1,420 million
Pharma & Biotech
27 transactions totaling $302 million
Supplies, Equipment & Services
15 transactions totaling $170 million
Healthcare IT & Managed Care
7 transactions totaling $224 million
Healthcare Facilities & Distributors
1 transaction
Pharma & Biotech
25 transactions totaling $3,256 million
Supplies, Equipment & Services
10 transactions totaling $1,351 million
Healthcare IT & Managed Care
2 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.
November 11, 2019 - Fierce Pharma
Megamergers are reshaping the drug industry, and now AbbVie—which inked a massive Allergan buyout earlier this year—is set to embark on a hefty bond offering as it seeks to close its deal, Bloomberg reports . The company plans to issue $28 billion in bonds, possibly by Tuesday, a source told the news service. AbbVie and Allergan anticipate closing their deal in early 2020. The offering would rank fourth among the largest in history, Bloomberg reported.  

November 15, 2019 - Fierce Pharma
Roche is spending up to $1.4 billion to snap up a scarring-focused biotech, nabbing an FDA breakthrough-tagged therapy in the process. The Swiss major, known for its work in cancer research, has in recent years been branching out into new areas, notably into idiopathic pulmonary fibrosis (IPF) with the approval of its drug Esbriet for the lung-scarring disease. Now, it’s looking to boost its pipeline with Lexington, Massachusetts-based Promedior and its group of experimental meds designed to treat fibrosis (scarring). These all come out of its pentraxin-2 platform that works as an endogenous human protein specifically active at the site of tissue damage.

November 14, 2019 - Fierce Pharma
Dewpoint Therapeutics, the biotech working to drug biomolecular condensates, has struck its first big deal. It’s teaming up with Bayer on new treatments for a pair of neglected fields: heart disease and women’s health. The multiyear deal could be worth up to $100 million , but the duo did not break that figure down further. They will put Dewpoint’s condensates technology and Bayer’s small molecule library and R&D expertise to work, with the German pharma picking up the option to license a “specified number” of programs from the deal. Dewpoint isn’t disclosing which specific diseases the partners are interested in, but CEO Amir Nashat pointed to pathways in both areas that are well known but have been difficult to drug safely. Using condensates will open up new targets, new epitopes and new binding sites for drug discovery and development, he said. 

November 14, 2019 - Fierce Biotech
Biotech ATAI Life Sciences has partnered with artificial intelligence drug discovery specialist Cyclica to form a new joint venture aimed at battling mental health. The two companies will use Cyclica’s AI approach and ATAI’s biotech and funding know-how to design and synthesize new compounds from psychoactive seed small molecule compounds (SMCs) to find the next generation of drugs to augment mental health care and combat diseases such as depression, bipolar disorder and schizophrenia. To do that, the pair have created Entheogenix Biosciences, which will be based in Delaware, to discover and work on both traditional and nontraditional drug approaches—such as tapping into psychedelics—to create better therapies for an area pretty much abandoned by Big Pharma, alongside much of its neuroscience work, in favor of oncology and rare diseases.  

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 Eagle
Sell-side | Consumer Health | Topical pain ointment, creams, patches and fertility testing devices
Recent Materials Providing Insight Into Healthcare Related Industries