Week of Sept 9, 2019 | Vol. 8, Issue 37
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.
Purdue Pharma has entered the first major opioid settlement. The company, whose OxyContin played a role in the opioid epidemic, plans to file for bankruptcy imminently and restructure under an agreement with 23 states and nearly 2,300 cities, counties and tribes,  according  to The New York Times.  

Under the deal, Purdue’s founding family—the Sacklers—will pay plaintiffs $3 billion over seven years. Some state attorneys general had wanted them to pay $4.5 billion upfront, but the family refused, the newspaper reports.

Purdue will restructure under the agreement and keep selling OxyContin, with proceeds going back to plaintiffs to help remedy the nationwide opioid and addiction epidemic. The Washington Post  pegged  the total deal value at between $10 billion and $12 billion.

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
22 transactions totaling $184 million
Supplies, Equipment & Services
19 transactions totaling $285 million
Healthcare IT & Managed Care
3 transactions totaling $230 million
Healthcare Facilities & Distributors
12 transactions totaling $110 million
Pharma & Biotech
28 transactions totaling $289 million
Supplies, Equipment & Services
25 transactions totaling $346 million
Healthcare IT & Managed Care
8 transactions totaling $56 million
Healthcare Facilities & Distributors
2 transactions totaling $174 million
Pharma & Biotech
14 transactions totaling $1,488 million
Supplies, Equipment & Services
3 transactions totaling $855 million
Healthcare IT & Managed Care
0 transactions
Healthcare Facilities & Distributors
3 transactions totaling $1,048 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 12, 2019 - Outsourcing Pharma
Covance opens a new facility in Shanghai, its biggest in Asia Pacific, to boost its research and development services offering.

September 11, 2019 - Fierce Pharma
Private equity investor Advent International has picked up another piece of Sanofi that it is shedding as the French drugmaker sharpens its focus on branded drugs. After laying out $2.2 billion for Sanofi’s generics operation Zentiva last year, it has followed up with a much smaller deal. Sanofi India today announced the sale of a manufacturing plant in Ankleshwar, Gujarat to Advent’s Zentiva for Rs 2,617 million ($36.5 million). The 32-year-old plant produces intermediates and formulations and has an annual capacity for more than 6 billion tablets.

September 11, 2019 - Fierce Biotech
GlaxoSmithKline has  struck  a deal to buy Sitari Pharmaceuticals, the first company created through its collaboration with Avalon Ventures. Sitari, a preclinical-stage biotech, is developing inhibitors of the TG2 enzyme as treatments for the autoimmune digestive disorder celiac disease. GSK and Avalon came together to found Sitari in 2013. Sitari raised a $10 million series A round in the same year and then worked within Avalon’s COI Pharmaceuticals incubator to develop intellectual property in-licensed from Stanford University’s Chaitan Kholsa. Having established a preclinical program, Sitari has now generated enough evidence to persuade GSK to acquire its operations.

September 10, 2019 - Fierce Pharma
Mallinckrodt is selling its CDMO unit for up to $250 million to a private equity firm, but that is a drop in the bucket of what it may need as it faces growing exposure to opioid and other litigation and as reports of bankruptcy circulate. The financially battered drugmaker today  said  it has a deal to sell BioVectra, its Canada-based contract manufacturer, to H.I.G. Capital for $250 million. The deal includes $135 million down, a long-term note for $40 million, and contingent payments of up to $75 million. It also comes just months after the U.K.-based drugmaker said it would expand BioVectra’s manufacturing with support from Canada. 

Recent Materials Providing Insight Into Healthcare Related Industries