Week of December 9, 2019 | Vol. 8, Issue 51
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
Upcoming Events

Quick Links

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.
Japanese drugmaker Astellas on Monday became the latest large pharmaceutical company to buy its way into a burgeoning gene therapy field,  announcing a $3 billion deal  to buy the San Francisco-based biotech Audentes Therapeutics.
Acquiring Audentes will give Astellas an experimental treatment for a rare neuromuscular disease, as well as an  entry point  into the increasingly competitive race to develop genetic medicines for Duchenne muscular dystrophy.
Astellas' buyout bid could also help lift a sector that's been  weighed down by investor concerns  resulting in part from delays to Roche's proposed takeover of Luxturna maker Spark Therapeutics, which remains pending review by U.S. regulators.​
At $60 per share, the Japanese pharma's takeover offer is more than double the $28.61 at which shares in Audentes traded at Monday's market close — a multiple on par with  Roche's bid for Spark  but higher than the premium  Novartis offered for AveXis , and Biogen for Nightstar Therapeutics.

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
15 transactions totaling $3,327 million
Supplies, Equipment & Services
17 transactions totaling $444 million
Healthcare IT & Managed Care
4 transactions
Healthcare Facilities & Distributors
18 transactions totaling $111 million
Pharma & Biotech
29 transactions totaling $670 million
Supplies, Equipment & Services
15 transactions totaling $167 million
Healthcare IT & Managed Care
8 transactions totaling $80 million
Healthcare Facilities & Distributors
0 transactions
Pharma & Biotech
5 transactions totaling $125 million
Supplies, Equipment & Services
0 transactions
Healthcare IT & Managed Care
1 transaction totaling $200 million
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.
December 5, 2019 - Outsourcing Pharma
Agilent Technologies talks up prospect of striking takeovers that exceed old $1bn ceiling on acquisitions.

December 3, 2019 - Fierce Biotech
Rapt Therapeutics is gaining a development partner and a foothold in Asia through a partnership potentially worth $118 million. The biotech is handing Hanmi Pharmaceutical the rights to its lead cancer program in South Korea and greater China in exchange for $10 million upfront and the promise of millions more in milestones. 
It’s a win for both companies: Rapt gains entry to markets in the Asia-Pacific region, and Hanmi picks up a program that could become a “keystone” in its immuno-oncology portfolio. In addition to the $10 million upfront fee and a near-term research payment, Rapt stands to net another $48 million in development milestones and $60 million in sales milestones, as well as royalties. 

December 2, 2019 - Fierce Biotech
Sanofi has moved to offload its Seprafilm surgical barrier business, setting up a large infusion of cash for early next year as its new CEO prepares to unveil his new strategic priorities for the company. The French drugmaker aims to trade the unit to Baxter International in return for $350 million.

December 2, 2019 - BioPharma Dive
For the second time this year, Neurocrine Biosciences has expanded its pipeline via a licensing deal, announcing Monday it will buy the rights to a clinical-stage drug the companies hope could become the first approved treatment for a rare type of pediatric epilepsy.
Neurocrine will pay $30 million in cash and up to $1.7 billion in potential milestone payments to Xenon Pharmaceuticals, a small biotech located just outside of Vancouver. In return, Neurocrine gains an exclusive license to the company's experimental therapy XEN901 as well as a number of preclinical assets.
Xenon develops medicines for rare neurological disorders. Its deal with Neurocrine focuses on compounds that inhibit a sodium channel called Nav1.6. Neurocrine plans to begin testing XEN901 in children with the rare epilepsy condition after filing an Investigational New Drug application in mid-2020.

Thank You MedTex Taiwan!

Our CEO, Banks Bourne presented at the MedTex Taiwan conference last week. It was an incredible event that we were honored to be a part of!
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.
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 Eagle
Sell-side | Consumer Health | Topical pain ointment, creams, patches and fertility testing devices

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 | Pharma | Numerous therapeutic categories
Recent Materials Providing Insight Into Healthcare Related Industries