Week of October 7, 2019 | Vol. 8, Issue 40
In This Issue
Featured Headlines
Recent Industry Transactions
Industry Trading Comps
Recent Industry Headlines
Market Reports
Upcoming Events

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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 drugmakers look to build out certain therapeutic areas, there are two options: Create your own and buy someone else’s. For Stockholm-based Sobi, getting a leg up in hematology meant making an aggressive play to acquire Dova Pharmaceuticals and its so-far-underperforming Doptelet.

Sobi will  buy out  Dova in a tender offer valued at up to $915 million, the companies said. It's a play to grow Sobi's hematology portfolio, with liver cancer and low blood platelet med Doptelet at the center.

Sobi figures the Dova pick-up will add significantly to its commercial hopes, given a projected $2 billion market for oral thrombopoietin receptor agonists (TPO) like Doptelet. The drug is expected go up for European review in ITP in 2020.

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
17 transactions totaling $1,543 million
Supplies, Equipment & Services
15 transactions totaling $192 million
Healthcare IT & Managed Care
5 transactions
Healthcare Facilities & Distributors
13 transactions totaling $699 million
Pharma & Biotech
22 transactions totaling $453 million
Supplies, Equipment & Services
12 transactions totaling $79 million
Healthcare IT & Managed Care
6 transactions totaling $76 million
Healthcare Facilities & Distributors
1 transaction totaling $6 million
Pharma & Biotech
16 transactions totaling $509 million
Supplies, Equipment & Services
5 transactions totaling $94 million
Healthcare IT & Managed Care
1 transaction totaling $100 million
Healthcare Facilities & Distributors
1 transaction
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.
October 4, 2019 - Fierce Biotech
Takeda has  formed  an inflammatory bowel disease (IBD) R&D pact with Prometheus Biosciences. The agreement tasks Prometheus with identifying and validating three IBD drug targets in return for up to $420 million in milestones.
Prometheus, formerly known as Precision IBD, has a repository of samples on about 20,000 IBD patients plus linked clinical and research data. Using the resource, Prometheus identifies subgroups of IBD patients and develops drugs to affect disease pathways most relevant to them. The company, which also develops diagnostics, bought Prometheus Laboratories from Nestlé Health Science in July.

October 2, 2019 - BioPharma Reporter
Shanghai Pharma and Biocad established a joint venture to commercialize the latter’s portfolio of biosimilars and biologic treatments for the Chinese market.

October 2, 2019 - Fierce Pharma
As the first bellwether trial in the national opioid litigation nears, Johnson & Johnson has become the latest drugmaker to ink a small settlement with the plaintiffs, dodging it altogether.
In a  d e al  with Ohio’s Cuyahoga and Summit counties, the drug giant will pay $20.4 million to resolve their claims and not admit liability for a role in the opioid epidemic that's ravaged the country. With the deal, four drugmakers—Allergan, Endo, Mallinckrodt and J&J—have handed the counties a combined sum of more than $60 million.  

October 2, 2019 - Fierce Pharma
The FDA has changed its tune about the levels of a suspected carcinogen in Zantac and generic ranitidine drugs. Instead of just a little NDMA with a very low risk, the agency says its new “early, limited testing” has found  unacceptable levels  of NDMA in ranitidine samples.
The FDA is recommending the drugmakers follow its lead and use a low-heat method of testing the antacids and not the high-temperature method used by a “third-party laboratory,” which it says actually generates NDMA and so displays much greater levels of the impurity. It also has asked drugmakers to send samples to the agency for testing. 

October 1, 2019 - BioPharma Dive
NewLink Genetics will combine with privately held Lumos Pharma, announcing Tuesday a reverse merger that fuses the two companies' management teams and give Lumos shareholders 50% ownership of the new business. 
The merged company will be renamed Lumos Pharma and trade on the Nasdaq under the ticker 'LUMO." Lumos' CEO and chief scientific officer, along with with NewLink's CFO and chief medical officer, will make up the new company's top leadership.

Thank You to Our Speakers and Attendees!
Bourne Partners 9th Annual Global Healthcare Summit
A special thank you to everyone who was able to attend out 9th Annual Bourne Partners Executive Healthcare Conference in Charlotte, North Carolina last week. The event was a great success!
 Click here to learn more about our annual, invitation-only conference.
Recent Materials Providing Insight Into Healthcare Related Industries