Week of July 22, 2019 | Vol. 8, Issue 29
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
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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.
Gilead will pay $5.1 billion to greatly deepen research ties with Belgian drugmaker Galapagos,  announcing Sunday  a 10-year deal that ups its ownership stake in the biotech and secures access to a pipeline of experimental drugs targeting inflammation and fibrosis.

Gilead head Daniel O'Day, eschewing major M&A in his first development deal as chief executive, opted for a partnership approach that shares similarities to past biotech collaborations struck between Roche and Genentech, and Sanofi and Regeneron.

Faced with declining sales of its hepatitis C drugs, Gilead has faced investor pressure to explore large-scale dealmaking. O'Day, however, argued in favor of a deal that preserves the independence of Galapagos: "I believe you are going to create more value than [with] an acquisition," O'Day said on a Sunday conference call with analysts. "This will assure that we have a motivated Galapagos driving the portfolio."

Read more at BioPharma Dive
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
13 transactions totaling $1,059 million
Supplies, Equipment & Services
21 transactions totaling $288 million
Healthcare IT & Managed Care
9 transactions totaling $102 million
Healthcare Facilities & Distributors
7 transactions totaling $9 million
Pharma & Biotech
20 transactions totaling $1,488 million
Supplies, Equipment & Services
15 transactions totaling $237 million
Healthcare IT & Managed Care
10 transactions totaling $82 million
Healthcare Facilities & Distributors
6 transactions totaling $28 million
Pharma & Biotech
17 transactions totaling $1,348 million
Supplies, Equipment & Services
4 transactions totaling $54 million
Healthcare IT & Managed Care
0 transactions
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.
July 15, 2019 - BioPharma Dive
AbbVie has expanded its oncology pipeline with the acquisition of Mavupharma, a privately held biotech targeting cancer through an immune pathway called STING. The companies did not disclose the terms of the transaction when  announcing the deal  Monday. Mavupharma had been nearing the start of clinical trials later this year for its lead candidate, an oral agent that it believes will have fewer side effects than the injectable STING stimulators that have so far been tested in the clinic.

July 15, 2019 - Fierce Pharma
Novartis has been busy doing M&A to focus on higher-margin, innovative medicines under CEO Vas Narasimhan. Toward that goal, the Swiss drugmaker has taken another step and offloaded three endocrine drugs to Recordati. The drugs on the chopping board are Signifor, its long-acting sister Signifor LAR and in-development follow-up osilodrostat (LCI699). For the three of them, Novartis is  getting  $390 million upfront, with milestone payments tied to osilodrostat.

July 16, 2019 - BioPharma-Reporter
Boehringer takes on AMAL to gain access to its cancer vaccine technology, with a lead candidate due to enter first-in-human studies this month.

July 16, 2019 - Fierce Biotech
After spinning out two companies at the start of the year, Sosei Heptares has now inked a new deal with Roche biologics unit Genentech. The headline $1 billion biobucks is, as ever, heavily backloaded, with the upfront a mere $26 million. Under the deal, the pair will seek to work on new meds that modulate G protein-coupled receptor (GPCR) targets “across a range of diseases.” For its part, Sosei Heptares will wed its GPCR-focused structure-based drug design work to Genentech’s expertise as they look for GPCR targets of interest to the Big Biotech.

July 18, 2019 - Outsourcing-Pharma
Marken has purchased three European logistics firms and is assessing additional locations at which the CEO said it plans to either build or buy.

July 18, 2019 - Fierce Pharma
Takeda’s ax is about to fall again, this time on some over-the-counter and off-patent prescription drugs in Western Europe. The Japanese pharma, still working to pay down debt it incurred for its Shire buy, tapped J.P.Morgan to help it find a buyer—or buyers—for some European consumer and prescription drugs, Reuters  reported , citing sources close to the matter. It hopes to fetch around €1.5 billion ($1.68 billion) for the products, most of which have already lost patent protection, the newswire said.

July 18, 2019 - Contract Pharma
A company backed by the  Permira Funds  has signed a definitive agreement to acquire a majority stake in  Quotient  from companies controlled by GHO Capital and other investors for an undisclosed sum. The investment provides substantial new funding to support the next stage of Quotient’s growth plan, which includes broadening core services, expanding formulation development and manufacturing capabilities.
Recent Materials Providing Insight Into Healthcare Related Industries
June 2019