Week of Sept 30, 2019 | Vol. 8, Issue 39
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.
When Novartis decided to pull its generic Zantac off shelves Tuesday on worries the drug contained a probable carcinogen, an expanding recall of the heartburn med seemed imminent. Now other drugmakers are jumping on board, and a global recall could be approaching.

GlaxoSmithKline, the original maker of branded Zantac, has  halted  global distribution of its generic version of the drug and issued a voluntary recall at the retail level in India and Hong Kong, a spokeswoman said Thursday. GSK does not market its version of the drug on U.S. shelves, the company said.

The recall and supply halt stem from contaminated API sourced from two Indian suppliers—Dr. Reddy’s Laboratories and Saraca—containing-nitrosodimethylamine (NDMA), one of the suspected carcinogens tied a global recall of “sartan” based drugs over the past year.

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 $531 million
Supplies, Equipment & Services
18 transactions totaling $207 million
Healthcare IT & Managed Care
10 transactions totaling $430 million
Healthcare Facilities & Distributors
10 transactions totaling $499 million
Pharma & Biotech
25 transactions totaling $241 million
Supplies, Equipment & Services
17 transactions totaling $118 million
Healthcare IT & Managed Care
11 transactions totaling $58 million
Healthcare Facilities & Distributors
3 transactions totaling $2 million
Pharma & Biotech
12 transactions totaling $574 million
Supplies, Equipment & Services
12 transaction totaling $5,627 million
Healthcare IT & Managed Care
0 transactions
Healthcare Facilities & Distributors
1 transaction totaling $13 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.
September 26, 2019 - BioPharma Dive
GlaxoSmithKline will spend $120 million to expand a biopharmaceutical manufacturing facility in Upper Merion, Pennsylvania, the latest investment made by the British pharma to support a push further into cancer and specialty drugs. The plant, which is located near Philadelphia, will initially focus on making "key pipeline assets" in GSK's drug pipeline, the drugmaker said in a Sept. 25 announcement. Although it did not name any specific experimental products, GSK has prioritized drugs in immunology and oncology. 

September 24, 2019 - Fierce Pharma
Biocon already has a wide pipeline of biosim molecules and partnerships with global drugmakers. Now, it’s picked up a 60,000-square-foot R&D site from Pfizer to advance on its ambitions in biosimilars. The site at the TICEL Bio Park in Chennai, India, will house 250 scientists and will allow the company to “fast-forward development of our biosimilars from lab to pilot scale,” Biocon Biologics CEO Christiane Hamacher said in a  statement

September 23, 2019 - Fierce Biotech
Clovis Oncology has  paid  $12 million for rights to FAP-targeted radiopharmaceuticals in development at 3B Pharmaceuticals. The deal gives Clovis the ex-Europe rights to a cancer candidate that is set to enter the clinic in the second half of next year. In return for the $12 million upfront, plus milestones, Clovis has bagged rights to a peptide-targeted radionuclide therapy in most countries outside of 3B’s home region of Europe. The therapy is aimed at FAP, a target expressed in many epithelial cancers including most tumors of the breast and lung. Clovis will oversee a global clinical development program for the FAP asset.

September 23, 2019 - Fierce Pharma
Allergan encountered years of setbacks before AbbVie swooped in this summer to purchase the company for a whopping $63 billion. But one small-time Allergan investor isn’t happy with the deal—and wants to rally other investors in a class-action suit to block it. In a New Jersey lawsuit, shareholder YuanLan Swei says the proxy statement detailing AbbVie’s proposed Allergan buyout omits key info for shareholders and sets its top managers up for big payouts that could taint their decision-making about the deal.

September 23, 2019 - Fierce Pharma
How do U.S. life sciences companies’ CEOs plan to achieve growth objectives in the next few years? One word—deals—a recent survey by KPMG has found.
About 43% of U.S. biopharma CEOs have a “high appetite” for M&A, an increase from 33% a year ago, KPMG's annual Global CEO Outlook survey found. The poll, carried out with CEOs in a variety of business sectors, included 193 in life sciences and 44 based in the U.S. “Life sciences CEOs realize that it makes sense to find partners with capabilities in research to help bring products to market, whether that is through working with startups or venture partners or looking at technological solutions,” Carole Streicher, KPMG’s deal advisory leader for healthcare and life sciences, said in a statement.

Recent Materials Providing Insight Into Healthcare Related Industries