Week of April 27th, 2020 | Vol. 9, Issue 17
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports (See below)
Upcoming Events

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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.

For more information about our consumer healthcare JV with The Emerson Group, Daybreak Consumer Care, click here .
Takeda has inked yet another deal aimed at lowering its debt level after the Shire acquisition.
The Japanese pharma said Friday that is has  agreed to sell  about 110 over-the-counter and prescription drugs in Europe, as well as two manufacturing sites, to Danish company Orifarm for up to about $670 million.
Wrapped in the bundle are some OTC products and food supplements, plus drugs such as blood thinner Warfarin and hypothyroidism med Levaxin, which collectively sold about $230 million in the fiscal year ended last March. These drugs fall outside of Takeda’s focus business areas, namely gastroenterology, rare diseases, plasma-derived therapies, oncology and neuroscience.

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
12 transactions totaling $430 million
Supplies, Equipment & Services
11 transactions totaling $131 million
Healthcare IT & Managed Care
2 transactions totaling $5 million
Healthcare Facilities & Distributors
8 transactions totaling $8 million
Pharma & Biotech
43 transactions totaling $826 million
Supplies, Equipment & Services
17 transactions totaling $148 million
Healthcare IT & Managed Care
9 transactions totaling $34 million
Healthcare Facilities & Distributors
1 transaction totaling $1 million
Pharma & Biotech
16 transactions totaling $1,039 million
Supplies, Equipment & Services
10 transactions totaling $108 million
Healthcare IT & Managed Care
4 transactions totaling $41 million
Healthcare Facilities & Distributors
2 transactions totaling $894 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 23, 2020 - Fierce Pharma
The proposed merger between Mylan and Pfizer’s Upjohn, though facing a delay due to the COVID-19 pandemic, has won antitrust clearance from the European Commission—but not without conditions.
EU regulators said Wednesday they  allowed  the transaction after the pair agreed to sell some Mylan generic drugs across 20 countries in the European Economic Area and the U.K.

April 23, 2020 - STAT
Billionaire philanthropist Bill Gates on Thursday warned that the world’s emergence from coronavirus lockdowns will be slow, and cautioned that it will take innovation before people feel safe enough to attend large public events or flock to restaurants.
“Even as a government relaxes restrictions on behavior, not everyone will immediately resume the activities that are allowed,” Gates, the co-founder of Microsoft and co-chair of the Bill and Melinda Gates Foundation, wrote in a long essay posted Thursday to his blog. “It will take a lot of good communication so that people understand what the risks are and feel comfortable going back to work or school.”
Gates said that the dramatic shutdowns of cities and countries worldwide have been necessary to slow spread of the SARS-CoV-2 virus, which causes Covid-19, despite the enormous societal costs.

April 21, 2020 - Fierce Pharma
Americans have been told daily that researchers are urgently working on COVID-19 vaccines, and that one might be available in 12 to 18 months. That timeline has made its way to high levels of government and through national media coverage.
But one influential biopharma analyst doesn't buy it—and he has plenty of reasons why. 
“We view the current expectations for a vaccine in this timeframe as the equivalent of standing 24 feet (the usual distance is 8 feet) from a dartboard, with one dart in hand, and counting on a bullseye from one throw,” the analyst wrote. “It is theoretically possible, but highly unlikely, that such expectations are correct.” 

April 21, 2020 - Fierce Pharma
Merck KGaA and subsidiary MilliporeSigma are doubling down on their gene therapy bets with a hefty nine-figure investment into expanded viral vector production.
MilliporeSigma will spend $110 million to open a second viral vector facility in Carlsbad, California, to "more than double" its gene therapy manufacturing capacity, the company said Tuesday.
The new, 140,000-square-foot expansion will add to MilliporeSigma's existing work at the site, which has been involved in gene therapy manufacturing since 1997 and currently employs around 175 workers, a spokeswoman said.
April 21, 2020 - Fierce Biotech
Sangamo Therapeutics has  struck  a deal with Mogrify to gain access to a source of cells for use in its allogeneic CAR-Treg therapies. The agreement sees Sangamo pay an upfront fee to get Mogrify to apply its direct cell conversion technology to the generation of regulatory T cells. 
Ready access to sources of cells has emerged as a key area of focus for developers of off-the-shelf cell therapies, leading to deals such as Allogene’s alliance with Notch Therapeutics. That deal, like other moves by allogeneic cell therapy players, reflected a desire to replace the finite donated T cells used in early off-the-shelf prospects with renewable, more scalable sources of starting materials.
Sangamo has identified Mogrify as a provider of such materials. Mogrify put itself on the map early last year when Darrin Disley, the former leader of Horizon Discovery, joined the startup as CEO and invested in its seed round. Months later, Mogrify raised a $16 million series A round.
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