Week of June 15th, 2020 | Vol. 9, Issue 24
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports (See below)
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.

For more information about our consumer healthcare JV with The Emerson Group, Daybreak Consumer Care, click here .
AbbVie  and  Genmab  have entered a collaboration to jointly develop and commercialize three of Genmab's early-stage investigational bispecific antibody product candidates, and to research future differentiated antibody therapeutics for cancer. The companies will partner to develop Genmab's next-gen bispecific antibody programs, epcoritamab (DuoBody®-CD3xCD20), DuoHexaBody®-CD37 and DuoBody-CD3x5T4 leveraging Genmab's discovery and development expertise and AbbVie's clinical expertise, antibody-drug conjugate (ADC) platform and global commercial leadership in hematological cancers.

AbbVie will pay Genmab $750 million upfront payment with the potential for Genmab to receive up to $3.15 billion in additional development, regulatory and sales milestones for all programs as well as royalties on sales for epcoritamab outside the U.S. and Japan. Except for these royalty-bearing sales, the parties share profits from the sale of products on a 50:50 basis.

The discovery collaboration will combine proprietary antibodies from both companies along with Genmab's DuoBody technology and AbbVie's payload and ADC technology to select and develop up to four additional differentiated next-gen antibody-based product candidates, potentially across both solid tumors and hematological malignancies. Genmab's DuoBody-CD3 technology engages and directs cytotoxic T cells selectively to tumors to elicit an immune response towards malignant tumor cells. AbbVie's ADC technology allows the delivery of a therapeutic toxin directly to cancer cells while sparing normal, healthy cells, providing for a more targeted, less toxic treatment approach.

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 $2,919 million
Supplies, Equipment & Services
13 transactions totaling $56 million
Healthcare IT & Managed Care
3 transactions totaling $29 million
Healthcare Facilities & Distributors
8 transactions totaling $48 million
Pharma & Biotech
30 transactions totaling $938 million
Supplies, Equipment & Services
15 transactions totaling $986 million
Healthcare IT & Managed Care
14 transactions totaling $340 million
Healthcare Facilities & Distributors
3 transactions
Pharma & Biotech
33 transactions totaling $3,212 million
Supplies, Equipment & Services
13 transactions totaling $1,657 million
Healthcare IT & Managed Care
2 transactions totaling $25 million
Healthcare Facilities & Distributors
1 transaction totaling $450 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.
June 11, 2020 - Fierce Pharma
AstraZeneca made waves last week when it signed a massive $750 million deal to ramp production of a University of Oxford COVID-19 vaccine up to 2 billion doses per year. Now, as part of a Trump administration effort to get shots into U.S. hands as soon as possible, AstraZeneca has agreed to another major manufacturing tie-up.
AstraZeneca and Emergent BioSolutions have  inked  an $87 million deal to manufacture doses of the University of Oxford's adenovirus-based COVID-19 shot for U.S. supply, the companies said Thursday.
The manufacturing accord is part of the Trump administration's Operation Warp Speed initiative to develop and rapidly scale production of targeted vaccines before the end of 2020.

June 11, 2020 - STAT News
Scientists stress that just because someone has recovered from Covid-19 and produced antibodies to the coronavirus does not mean they are protected from contracting it a second time. No one’s yet proven that.
That, then, leaves open the question: What does immunity look like?
Experts anticipate an initial coronavirus infection will lend people some level of immunity for some amount of time. But they still don’t know what potpourri of antibodies, cells, and other markers in a person’s blood will signify that protection. And determining those “correlates of protection” is crucial both so individuals can know if they are again at risk, and so researchers can understand how well potential vaccines work, how long they last, and how to accelerate their development.

June 11, 2020 - Fierce Biotech
Novo Nordisk plunked down $725 million for France’s Corvidia Therapeutics and its lead program, an anti-IL-6 antibody for the treatment of heart disease related to kidney disease. The Danish drugmaker aims to start a phase 3 study for the drug in 2021 and, if all goes well, Corvidia’s shareholders could ultimately cash out $2.1 billion.
The antibody, ziltikevimab, is in a phase 2b dose-finding trial to reduce the risk of heart problems in patients with chronic kidney disease who also have atherosclerosis, the buildup of fats, cholesterol and other substances in the artery walls. Having led six cardiovascular outcomes trials for its own medicines, like Victoza and Ozempic, which were both were developed for diabetes, Novo is prepared to move its new antibody into phase 3.

June 10, 2020 - Fierce Biotech
AbbVie is set to pay Genmab $750 million upfront for a stake in a pipeline of anti-cancer bispecifics led by epcoritamab. The  deal , which features up to $3.2 billion in milestones, positions AbbVie to race Regeneron to market with a bispecific antibody that could compete with CAR-T therapies.
Genmab has consistently targeted a mid-2020 agreement covering the rights to CD3xCD20 bispecific antibody epcoritamab, telling investors that it aimed to book U.S. sales, retain a 50% split and secure promotion rights through a deal with a “blue-chip” partner. As recently as this month, Genmab CEO Jan van de Winkel said multiple parties were still in the running.
Now, AbbVie has landed rights to epcoritamab by agreeing to Genmab’s redlines for the deal, putting up $750 million upfront and committing to a partnership that extends far beyond epcoritamab.
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 Aspen
Sell-side | Pharma Services | Multi-national contract manufacturing and packaging organization

Project Athena
Sell-side | Medical Device | Novel medical device for the treatment of pelvic organ prolapse

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 Olympus
Sell-side | Pharma | Portfolio of generic injectable products

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