Week of April 6th, 2020 | Vol. 9, Issue 14
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
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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.
Pharmaceutical Associates Inc (“PAI”), a leader in liquid unit-dose, bottle prescription, and over-the-counter medications, announced today the appointment of Paul Campanelli, former CEO of Endo Pharmaceuticals to its Board of Directors.
Paul is the former President, Chief Executive Officer and Director of Endo International [NASDAQ: ENDP] with over 30 years of healthcare experience. Paul transformed the organization, with a vision of becoming a highly focused generics and specialty branded pharmaceutical company. Endo delivers quality medicines to patients in need through excellence in development, manufacturing, and commercialization in multiple business segments including U.S. Branded Pharmaceuticals, U.S. Branded Sterile Injectables, U.S. Generic Pharmaceuticals, and International Pharmaceuticals. Paul led the company’s strategic focus on organic growth through investments in hard-to-produce generic assets and technologies, a highly specialized branded business, and a concentration on differentiated and intelligent product selection. Prior to joining Endo, he had served as Chief Executive Officer of Par Pharmaceutical following the Company’s September 2012 take-private acquisition by TPG. Prior to the TPG acquisition, Mr. Campanelli served as Chief Operating Officer and President of Par Pharmaceutical from 2010 to 2012.
“Paul is a long-time friend and industry colleague of our firm. He brings a great deal of knowledge and experience that will be invaluable to the continued growth and success of PAI,” said Banks Bourne, CEO of Bourne Partners Strategic Capital (“BPSC”). “Paul is joining the board at a pivotal time as we work together to carry out the company’s growth initiatives that include strategic acquisitions, expanding our provider base, and broadening the variety of services that we provide. We are looking forward to working together to ensure that the business continues to prosper.”

Read the full article here .
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
13 transactions totaling $1,294 million
Supplies, Equipment & Services
19 transactions totaling $213 million
Healthcare IT & Managed Care
9 transactions totaling $17 million
Healthcare Facilities & Distributors
8 transactions totaling $17 million
Pharma & Biotech
32 transactions totaling $878 million
Supplies, Equipment & Services
16 transactions totaling $88 million
Healthcare IT & Managed Care
5 transactions totaling $73 million
Healthcare Facilities & Distributors
4 transactions totaling $12 million
Pharma & Biotech
19 transactions totaling $400 million
Supplies, Equipment & Services
13 transactions totaling $1,988 million
Healthcare IT & Managed Care
1 transaction totaling $25 million
Healthcare Facilities & Distributors
1 transaction totaling $700 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.
April 3, 2020 - Fierce Biotech
Horizon Therapeutics has added to its growing acquisitive pipeline with the  buyout  of Curzion Pharmaceuticals for just $45 million.
It gains the privately held biotech’s oral selective lysophosphatidic acid 1 receptor antagonist, which was known as CZN001 and is now renamed HZN-825. Though a small upfront fee, biobucks are wedded to that drug’s success further down the line.
April 2, 2020 - Fierce Biotech
Although front-line treatments for multiple myeloma work well for most patients, many of them eventually relapse, running out of drugs to treat their cancer. Gilead Sciences’ Kite Pharma is working on new CAR-T therapies for these patients—and it’s enlisted Teneobio’s antibody technology to do so.
Under the  deal , Kite is licensing a suite of antibodies from Teneobio that target BCMA, including one currently in a phase 1 study for multiple myeloma at the National Cancer Institute. The pair will also use Teneobio’s Human Heavy-Chain Antibodies (UniAb) platform to discover antibodies for up to four more targets to be used in CAR-T treatments for multiple myeloma. It’s part of a strategy to translate the response rates Kite has seen with Yescarta in blood cancers that express CD19—such as diffuse large B-cell lymphoma—to patients with multiple myeloma, Peter Emtage, Ph.D., Kite’s senior vice president of research, told FierceBiotech.
April 2, 2020 - BioPharma Dive
Swiss pharma Novartis said on Wednesday it's terminating a potential $1 billion agreement to sell its Sandoz U.S. generic oral solids and dermatology businesses to Aurobindo Pharma after failing to win Federal Trade Commission approval.
The deal, announced in September 2018, couldn't get the OK from the FTC "within anticipated timelines," Novartis said in an April 2 statement.
April 2, 2020 - Fierce Biotech
The companies entering the race to develop a COVID-19 vaccine will not only have to prove efficacy quickly, they’ll also have to figure out how to scale up production in time to help stem the current epidemic. Researchers at the University of Pittsburgh School of Medicine say they’ve made progress on both fronts with their new COVID-19 vaccine candidate.
The team developed a vaccine that can be delivered into the skin with a Band-Aid-like patch made of 400 tiny needles. When they tested it in mice, the vaccine produced antibodies to fend off the virus within two weeks, they  reported  in the journal EBioMedicine. The researchers are now applying for an investigational new drug designation from the FDA in the hopes of starting a phase 1 clinical trial shortly, they said in a  statement .
April 1, 2020 - BioPharma Dive
Ultragenyx, a rare disease drug developer, has agreed to out-license its gene therapy technology to Tokyo-based Daiichi Sankyo in a deal worth at least $225 million.
The deal provides Daiichi with non-exclusive access to Ultragenyx's manufacturing platform for adeno-associated viruses, which are used in gene therapy to deliver the functioning genetic material into target cells. In exchange, Ultragenyx receives $200 million upfront, plus an option to co-develop and co-commercialize any rare disease gene therapies made through the platform.

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

Project Vintage
Asset Divestiture | Generic Pharma | Numerous therapeutic categories

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