Week of Aug 5, 2019 | Vol. 8, Issue 31
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.
Pfizer has  agreed to  merge its off-patent drugs franchise, Upjohn, with Mylan, the companies said Monday. The deal would allow Pfizer and Mylan to combine two under-pressure businesses into a new giant with projected 2020 revenues of $19 billion to $20 billion. And with that heft, it may have a better chance at weathering growing pricing pressure in the U.S. generics market.

The two parties are looking at a stock transaction, in which Mylan investors will get 43% of the combined company and Pfizer investors the rest. Upjohn plans to issue $12 billion in new debt to wrap up the deal, and the proceeds will go to Pfizer. Mylan and Pfizer already collaborate on EpiPen, though that partnership has lately suffered from  manufacturing problems .

The company will have 51 manufacturing sites, including 25 solid dose, seven injectable, eight complex dosage forms and 11 API sites. In total they can produce more than 80 billion doses annually. 

Read more at Fierce Pharma
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 $3,426 million
Supplies, Equipment & Services
26 transactions totaling $1,102 million
Healthcare IT & Managed Care
3 transactions
Healthcare Facilities & Distributors
13 transactions totaling $3,620 million
Pharma & Biotech
26 transactions totaling $492 million
Supplies, Equipment & Services
18 transactions totaling $71 million
Healthcare IT & Managed Care
5 transactions
Healthcare Facilities & Distributors
4 transactions totaling $19 million
Pharma & Biotech
17 transactions totaling $445 million
Supplies, Equipment & Services
4 transactions totaling $899 million
Healthcare IT & Managed Care
1 transaction totaling $62 million
Healthcare Facilities & Distributors
1 transaction totaling $550 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.
August 2, 2019 - Fierce Pharma
Fujifilm has sealed the deal. With the completion of an $890 million, all-cash exchange with Biogen, the CDMO is now in possession of a biologics production facility in Denmark with about 800 employees. The 90,000-L capacity facility in Hillerød marks the fourth biologics manufacturing site for Tokyo-based Fujifilm Diosynth Biotechnologies, a partnership between Fujifilm and Mitsubishi. The site has six 15,000L bioreactors as well as assembly, labeling and packing capabilities, quality control laboratories and warehouses. 

August 1, 2019 - Fierce Pharma
With Celgene making the big move under Bristol-Myers Squibb’s umbrella, the drugmaker is looking to clear its books before the merger. Two antitrust settlements totaling more than $100 million could help soothe BMS’ mind. Celgene will pay Mylan  $62 million  to settle claims that it intentionally stifled generic competition for its blockbuster multiple myeloma med Revlimid and predecessor Thalomid. The Big Biotech refused to sell samples of the two drugs to generics makers, the lawsuit said—and those samples are necessary for copycats to win FDA approval.

July 31, 2019 - BioPharma Dive
The Trump administration on Wednesday proposed allowing the importation of lower-priced drugs from foreign countries in its latest bid to lower patient out-of-pocket costs. The proposal rests on the belief that manufacturers would offer imported drugs at a lower price if they sold them under a different National Drug Code than products designated for the U.S. market, a claim that analysts disputed. The pharmaceutical sector's leading trade group, meanwhile, opposed the plan on safety grounds.

July 30, 2019 - Outsourcing-Pharma
PRA Health Sciences has bought out its joint venture with Takeda, establishing a new subsidiary based in Japan – a rapidly growing market, says EVP.

July 29, 2019 - BioPharma Dive
Exact Sciences will buy fellow cancer technologies firm Genomic Health in a $2.8 billion deal announced Monday. Between the companies' currently marketed tests — Exact Sciences' Cologuard for colorectal cancer diagnosis and Genomic Health's Oncotype DX tests for predicting response to cancer treatments — executives forecast the combined company would generate $1.6 billion in revenue next year.

Recent Materials Providing Insight Into Healthcare Related Industries
July 2019