Week of December 16, 2019 | Vol. 8, Issue 50
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.
Sanofi has  struck  a deal to buy Synthorx for $2.5 billion (€2.3 billion). The takeover, the first of Paul Hudson’s time as CEO, will give Sanofi control of an IL-2 drug it thinks can become a foundation of future immuno-oncology combinations. 

Synthorx is one of a clutch of companies trying to overcome the pharmacological limitations of the cytokine IL-2. A recombinant form of IL-2, branded Proleukin, won approval in the 1990s and is sold to this day. However, in its recombinant form IL-2 suffers from an onerous dosing regimen and causes adverse events including vascular leak syndrome.

In THOR-707, Synthorx thinks it has a drug that has IL-2’s power to turn the immune system against cancer but is free from its downsides. Synthorx created the drug by installing a novel amino acid at one position in recombinant IL-2.

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 $5,239 million
Supplies, Equipment & Services
22 transactions totaling $962 million
Healthcare IT & Managed Care
4 transactions
Healthcare Facilities & Distributors
9 transactions totaling $38 million
Pharma & Biotech
39 transactions totaling $836 million
Supplies, Equipment & Services
25 transactions totaling $410 million
Healthcare IT & Managed Care
11 transactions totaling $143 million
Healthcare Facilities & Distributors
4 transactions totaling $3 million
Pharma & Biotech
19 transactions totaling $1,343 million
Supplies, Equipment & Services
6 transactions totaling $871 million
Healthcare IT & Managed Care
3 transactions totaling $254 million
Healthcare Facilities & Distributors
1 transaction totaling $9 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.
December 13, 2019 - Fierce Pharma
The FDA’s attitude toward Sarepta Therapeutics’ Duchenne muscular dystrophy (DMD) therapies is nothing short of dramatic. In just four months, the agency shocked industry watchers twice, first with a rejection and now a reversal for the biotech’s Exondys 51 follow-on.
Out of nowhere, the agency Thursday  granted accelerated approval  to Sarepta’s Vyondys 53 (golodirsen), a drug it turned down in August for safety reasons. The go-ahead covers about 8% Duchenne patients whose dystrophin gene bears a certain mutation amenable to exon 53 skipping.
While the FDA didn’t elaborate on the sudden change of course, Sarepta said it had  launched  a formal dispute resolution request after receiving the agency's complete response letter (CRL) detailing its reasons for the rejection. 

December 11, 2019 - Fierce Pharma
Just months after a C-suite shakeup at Amneal, the generics company has struck a $220 million deal that will not only fill capacity and boost its generics business but is set to disrupt the contract manufacturing market. That is because it is buying a majority stake in AvKare, which sources the private-label drugs it sells the government through dozens of contractors. 
Amneal  says  it is buying a 65.1% stake in the Fountain Run, Kentucky-based business which will become a standalone subsidiary of Amneal. It says the deal sets the enterprise value of AvKare at $340 million. AvKare does business as R&S Northeast. 

December 11, 2019 - Fierce Pharma
Bayer’s eager to send its animal health unit to Elanco so it can focus its healthcare efforts on pharmaceuticals. But that $7.6 billion selloff, like many other recent life sciences deals, has hit an antitrust snag.
The U.S. Federal Trade Commission  sent Elanco  a second request for information about the deal, the Indiana-based veterinary specialist said Monday.

December 10, 2019 - BioPharma Dive
The launch of AbbVie and Johnson & Johnson's Imbruvica transformed treatment of the blood cancer chronic lymphocytic leukemia, helping patients stay disease free for years with a pill rather than chemotherapy combinations.
But with several years of real-world experience, physicians now know that low-frequency side effects like irregular heartbeat and high blood pressure detected in clinical trials are bigger problems for patients on years-long courses of Imbruvica, the first of a class of drugs called Bruton's tyrosine kinase, or BTK, inhibitors.

December 19, 2019 - Fierce Biotech
Merck is set to  buy  ArQule for $2.7 billion. The planned takeover centers on ARQ 531, a BTK inhibitor that triggered durable responses in patients with B-cell malignancies in an early-phase trial. 
ArQule has had plenty of ups and downs over its more than 20 years on public markets but has now found an exit. Merck has agreed to pay $20 a share, a more than 100% premium over ArQule’s Friday closing price, to buy the drug developer, primarily for midphase BTK inhibitor ARQ 531.

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