Week of February 3, 2020 | Vol. 9, Issue 5
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.
AbbVie and Allergan have sold rights to an experimental digestive disease drug to AstraZeneca, a move aimed at getting ahead of possible antitrust concerns related to their pending $63 billion deal.
AbbVie previously promised to divest the drug, called brazikumab, in order to complete the deal. The company's post-acquisition ownership of brazikumab could have raised antitrust concerns because it acts on the same biological target as AbbVie's new psoriasis medication, Skyrizi.
The parties did not disclose financial terms of the transaction. AstraZeneca on Monday also announced it had sold commercial rights to five of its older, off-patent hypertension drugs for $350 million.

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 $109 million
Supplies, Equipment & Services
18 transactions totaling $192 million
Healthcare IT & Managed Care
3 transactions totaling $675 million
Healthcare Facilities & Distributors
13 transactions totaling $137 million
Pharma & Biotech
31 transactions totaling $529 million
Supplies, Equipment & Services
16 transactions totaling $90 million
Healthcare IT & Managed Care
16 transactions totaling $136 million
Healthcare Facilities & Distributors
2 transactions
Pharma & Biotech
30 transactions totaling $1,725 million
Supplies, Equipment & Services
10 transactions totaling $1,070 million
Healthcare IT & Managed Care
2 transactions totaling $160 million
Healthcare Facilities & Distributors
1 transaction totaling $196 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.
January 30, 2020 - Memphis Business Journal
AmerisourceBergen Corp. announced today, Jan. 30, that its PharMEDium business unit will shut down permanently in 2020, including its Memphis facility.
In January 2019, PharMEDium  laid off 225  of its 440 Memphis staff. That number then dropped to their current headcount of 165 workers. With today’s news, those remaining workers will now be affected by the announced business unit closure.
PharMEDium’s facility in Memphis, at 6100 Global Drive, had been idle since December 2017 after voluntarily ceasing operations due to a drug recall related to sterility concerns. Executives said in January 2018 that the Memphis plant — which makes compounded sterile preparations (CSP) of drugs in doses not commercially available — is the largest in that business line and produced about half of the company’s CSP products when open for production.
January 30, 2020 - Fierce Biotech
Roche has dropped an antisense hepatitis B drug shortly after licensing a rival therapy from Dicerna Pharmaceuticals. RG6004 fell off Roche’s  pipeline  as part of a periodic cull that affected a handful of other experimental programs. 
Synthetic locked nucleic acid modified antisense oligonucleotide RG6004 moved into the clinic early in 2017, opening up another front in Roche’s attack against the hep B virus. New information about the drug dried up over the next few years, although Roche’s decision to pay $200 million (€182 million) upfront to license Dicerna’s phase 1 RNAi therapy suggested the Swiss Big Pharma saw gaps in its hep B pipeline.
January 29, 2020 - BioPharma Dive
Novartis' gene therapy Zolgensma costs $2.1 million per patient. But that record price tag hasn't impeded the Swiss drugmaker from recording a strong commercial launch for the one-time treatment in the U.S.
Sales numbers released Wednesday show Zolgensma, which was approved last year for the fatal neuromuscular disease spinal muscular atrophy, earned $186 million in the fourth quarter. Zolgensma's commercial performance to date should offer some reassurance to investors that Novartis can successfully sell the gene therapy, which poses unique challenges to a system built around drugs for chronic diseases. Not only is Zolgensma's cost dramatically higher than typical, its value is tied to its potential to be a genetic cure for a disease that typically leads to death before the age of two.
January 27, 2020 - FierceBiotech
GlaxoSmithKline has licensed a tuberculosis vaccine to the Bill & Melinda Gates Medical Research Institute (MRI). The deal sets the stage for a push to build on recent phase 2b data and make the vaccine available in low-income countries where TB is prevalent.
The vaccine, M72/AS01E, is made up of an immunogenic fusion protein based on two TB antigens. GSK combined that protein with the adjuvant found in its shingles prophylactic Shingrix to create a subunit vaccine. Last year, a phase 2b trial  linked  the vaccine to 50% protection against progression to active pulmonary tuberculosis for three years in adults infected with the mycobacterium.
Gates Foundation funding supported one of the organizations involved in the phase 2b. Now, Gates MRI, the nonprofit biotech offshoot of the foundation, has struck a deal to play a bigger role in the next steps in the development of the vaccine.

Bourne Partners Corporate Video
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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