Week of October 3, 2016 | Vol. 5, Issue 39
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The list of drugmakers reportedly eying Bayer's up-for-sale dermatology unit is growing even longer.
Mylan, New Jersey's Leo Pharma and India's Lupin, Cadila Healthcare and Torrent Pharmaceuticals are all weighing offers for the unit, which could bring in more than $1.1 billion for the German drugmaker as it looks to fund the $66 billion Monsanto acquisition it recently agreed to, Bloomberg reports.
Previous reports listed Nestle's Galderma, Spain's Almirall, India's Sun Pharma, Teva
, Allergan
and Perrigo
as potential suitors on the pharma side, while private equity firms such as KKR and Bain Capital have featured in the rumors, too.
The companies may not have much more time to decide whether to officially jump into the fray, though. Bids may be due as soon as this week, sources told the news service.
Both Mylan and Leo have made recent deals in the dermatology space. Bayer's portolio--which includes eczema therapy Desonate and rosacea treatment Finacea--could bolster the €675 million worth of skincare assets Leo Pharma agreed last year to to buy from Japan's Astellas, or those Mylan in May announced it would be buying with a $1 billion deal for Renaissance Acquisition Holdings.
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TRACON Pharmaceuticals Announces a Strategic Licensing Collaboration for Two Janssen Oncology Assets and a $5 Million Equity Investment from Johnson & Johnson Innovation.
TRACON Pharmaceuticals, a clinical stage biopharmaceutical company focused on the development and commercialization of novel targeted therapeutics for cancer, wet age-related macular degeneration and fibrotic diseases, today announced a strategic licensing collaboration with Janssen Pharmaceutica N.V. for two novel oncology assets from Janssen's early development portfolio, with Janssen retaining certain rights to potentially reacquire the programs. Johnson & Johnson Innovation facilitated the collaboration. Johnson & Johnson Innovation also made a $5 million equity investment in TRACON through the purchase of common stock at a price of $5.95 per share.
The transaction grants TRACON the rights to develop two Janssen oncology programs: TRC253, a novel small molecule high affinity competitive inhibitor of wild type androgen receptor and multiple AR mutations that confer drug resistance, which is intended for the treatment of men with prostate cancer, and TRC694, a novel, potent, orally bioavailable inhibitor of NF-kB inducing kinase, which is intended for the treatment of patients with hematologic malignancies, including myeloma.
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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 or use the download link above. Total transaction values are provided in USD millions.
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Pharma & Biotech
14 transactions totaling $306
million
Supplies, Equipment & Services
15 transactions totaling $509 million
Healthcare IT & Managed Care
1 transactions totaling $0
Healthcare Facilities & Distributors
15 transactions totaling $853 million
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Pharma & Biotech
25 private placements totaling $233 million
Supplies, Equipment & Services
19 private placements totaling $193 million
Healthcare IT & Managed Care
7 private placements totaling $57 million
Healthcare Facilities & Distributors
2 private placements totaling $42 million
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Pharma & Biotech
10 public offerings totaling $371 million
Supplies, Equipment & Services
4 public offerings totaling $9 million
Healthcare IT & Managed Care
1 public offering totaling $86 million
Healthcare Facilities & Distributors
0 public offerings
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 Each week, w
e provide updated trading
comps for leading comp
anies from numerous healthcare subsectors.
To the right you will see a high-level breakdown of median revenue and EBITDA multiples for each of the specific subsectors
For a complete trading comp analysis (including the individual equities that comprise the subsectors), click on the table to the right or use the download link from the top of this newsletter.
Note: data reflects prior week close.
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RECENT INDUSTRY HEADLINES
A Sampling of Relevant Industry Headlines from the Last Week
Below are snippets from relevant industry news articles from the past week presented in chronological order. For additional information or the article's complete text, click the headline link to view the original publication.
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September 26, 2016 - Bio Space
Pfizer has been considering splitting into two companies since at least 2012. This was clearly at the forefront during its attempts to merge with Dublin-based Allergan. The company announced today, however, that after lengthy evaluation, it has decided not to split the company. The idea was to split off its newer, high-growth drug and its more mature, often off-patent drugs, into two separate companies. This way the high-growth would not be dragged down by the mature brands. The two units are known as Pfizer Innovative Health and Pfizer Essential Health.
September 26, 2016 - Fierce Biotech
Sino-American biotech MicuRx Pharmaceuticals has raised $55 million to fund a pair of late-phase trials of its antibiotic. The Series C round will enable MicuRx to wrap up Phase III trials of the antibiotic in the U.S. and China, before going on to file for approval in the latter of the two countries.GP Healthcare Capital led the round, which also attracted the support of three new investors: GP TMT Capital, 3E Bioventures Capital and Delian Capital. The financiers have come on board to give MicuRx the means to execute some of the final steps in its 9-year drive to bring the antibiotic MRX-I to market, first in China and then potentially in the U.S. and further afield.
September 26, 2016 - Fierce Biotech
iRhythm, the maker of the Zio wearable heart monitor, plans an initial public offering to raise up to $86 million it will use to step up the commercial and clinical reach of the device, the company said in an SEC filing. The San Francisco-based company registered its intentions with the regulatory agency last week and will trade under "IRTC" on the Nasdaq exchange. Bookrunners for the offering are JP Morgan and Morgan Stanley.
September 26, 2016 - Pharmaceutical Business Review
BioLineRx has signed an exclusive, worldwide agreement with BGN Technologies, the Technology Transfer Company of Ben-Gurion University, and Hadasit, the Technology Transfer Company of Hadassah Medical Organization, for the in-licensing of a novel treatment for various liver failure conditions such as end-stage liver disease and for conditions potentially leading to liver failure such as non-alcoholic steatohepatitis. This novel treatment, to be named BL-1220, is the second project in-licensed under the framework of the Company's strategic collaboration with Novartis Pharma AG for the screening and development of novel drug candidates.
September 26, 2016 - Pharmaceutical Business Review
Ligand Pharmaceuticals has licensed rights to four programs to Seelos Therapeutics a newly formed biopharmaceutical firm focused on central nervous system (CNS), respiratory and other disorders. The licensed therapeutic programs include Ligand's aplindore program for the treatment of various CNS disorders, a CRTH2 antagonist program for the treatment of respiratory disorders, a Captisol-enabled acetaminophen program for pain and fever management and an H3 receptor antagonist program for the treatment of narcolepsy. Under the license agreement, Ligand is entitled to receive initial payments in equity or cash of $1.3 million upon Seelos' completing a minimum of $7.5 million financing and up to an additional $3.5 million if Seelos becomes a public company and up to $145 million of additional cash milestones.
September 27, 2016 - Fierce Biotech
Boston Scientific has agreed to acquire EndoChoice for approximately $210 million in a deal that will see the latter folding into Boston Sci's endoscopy business. "The addition of EndoChoice products and services to our portfolio supports our strategy to provide comprehensive solutions to gastroenterology caregivers and the patients they serve," said Art Butcher, senior vice president and president of endoscopy at Boston Scientific, in a statement. "We expect the acquisition to expand our leadership into new categories in the endoscopy market, and to drive strong, continued growth of our endoscopy business."
September 27, 2016 - Pharmaceutical Business Review
PAREXEL International has entered into a definitive agreement to acquire ExecuPharm, a global functional service provider serving the biopharmaceutical industry. The acquisition is expected to close in the next three weeks. Terms of the transaction were not disclosed. Established in 1995, ExecuPharm provides clients with qualified professionals across functional areas, such as clinical monitoring or study management, along with associated operational activities including onboarding, training, line management, performance management and policy administration.
September 27, 2016 - Fierce Biotech
Startup Fortis has emerged from stealth mode with an $18 million Series A financing led by Avalon Ventures. Based on tech licensed from the University of California at San Francisco (UCSF), the immuno-oncology company aims to get an antibody drug conjugate into the clinic during 2018. The company will be based at Avalon's San Diego, CA, biotech incubator, known as COI Pharmaceuticals. It's specifically focused on developing ADCs for late-stage cancers including late-stage metastatic castration-resistant prostate cancer and multiple myeloma.
September 27, 2016 - Pharmaceutical Business Review
The Biomedical Advanced Research and Development Authority within the Office of the Assistant Secretary for Preparedness and Response in the US Department of Health and Human Services is giving Sanofi $43.2m to fund the manufacture of a Zika vaccine for phase II development. Sanofi Pasteur committed to researching and developing a vaccine to prevent Zika in February, shortly after the World Health Organization declared an emergency. In July 2016, Sanofi Pasteur announced a Cooperative Research and Development Agreement with the Walter Reed Army Institute of Research on the co-development of a Zika vaccine candidate.
September 27, 2016 - Bio Space
Drug giant Bristol-Myers Squibb forged a research pact with Nektar Therapeutics to explore immunotherapy treatments for five different tumor types by combining its blockbuster immuno-therapy Opdivo with Nektar's investigational medicine, NKTR-214. NKTR-214, a CD122-biased immune-stimulatory cytokine, is an investigational immuno-stimulatory therapy designed to expand specific cancer-fighting T cells and natural killer cells directly in the tumor micro-environment and increase expression of PD-1 on these immune cells. Opdivo is a PD-1 immune checkpoint inhibitor designed to overcome immune suppression. A combination of the two drugs could result in greater treatment results for cancer patients, particularly in areas where PD-1 inhibitors have already shown promise.
September 28, 2016 - Fierce Biotech
Boehringer Ingelheim is making a bid in oncolytic viruses in a deal with preclinical ViraTherapeutics that's worth up to €210 million ($236 million). As part of the deal, the pharma gains the right to buy the biotech after Phase I development is finished. The partners will work together to develop a next-gen oncolytic virus therapy platform--as well as to advance ViraTherapeutic's lead candidate VSV-GP glycoprotein alone and in combination with other treatements.
September 28, 2016 - Fierce Biotech
GlaxoSmithKline has found a buyer for a French drug discovery site rendered redundant by its revamped dual-hub R&D model. Bristol-Myers Squibb partner Oncodesign has agreed to take over the Paris facility on the condition GSK pays $40 million over the next four years to support the transition. The ax has hung over the Les Ulis site on the southern outskirts of Paris and its employees ever since GSK made Stevenage, U.K. and Upper Providence, PA, the twin centers of its R&D strategy last year. This time last year, GSK gave itself 6 months to find a buyer for Les Ulis before starting the arduous process of shuttering a facility in a country with strong labor laws.
September 28, 2016 - Fierce Biotech
LSP and LifeCare Partners have co-led a €17.5 million eries A investment in Immunic, a 5-month-old immunology biotech. The cash has enabled Immunic to buy cytokine inhibitor and Crohn's disease programs from 4SC, kick-starting its push to develop into a clinical-stage biotech. Immunic, which like 4SC, MorphoSys and Rigontec is based in Planegg-Martinsried on the outskirts of Munich, has raised the money to develop oral, small molecule immunomodulators against immune and autoimmune diseases. By developing oral drugs for diseases such as Inflammatory bowel disease and psoriasis, Immunic thinks it can give patients a more convenient treatment option than the intravenous formulations many people rely on today.
September 28, 2016 - Healthcare IT News
Seven organizations will split the funds in multiple efforts to use health IT for projects ranging from a patient-centered data model to interoperable, bi-directional behavioral health data exchange.
September 28, 2016 - Pharmaceutical Business Review
Sareum's co-investment partner, the CRT Pioneer Fund, has licensed exclusive and worldwide rights for the Chk1 inhibitor cancer drug candidate CCT245737 to ProNAi Therapeutics. Under the terms of the agreement, an immediate upfront payment of US$7.0 million is due to the co-investment partners and an additional fee of up to US$2.0 million will be payable upon the successful transfer of the two ongoing Phase 1 clinical trials to ProNAi. Additional payments in the aggregate amount of up to US$319.5 million may become payable upon achievement of certain development, regulatory and commercial milestones. ProNAi will also owe high single to low double digit royalties on the net sales of any product successfully developed.
September 28, 2016 - Pharmaceutical Business Review
C4X Discovery has entered into a multi-target, risk-sharing alliance with Evotec, a drug discovery alliance and development partnership firm. The new Agreement builds on the strategic collaboration between the two companies announced in January 2015 and will see C4XD and Evotec work together to develop new small molecule drugs across a range of targets, therapeutic areas and stages of development, with the initial programmes targeted towards the treatment of cancer and autoimmune diseases.
September 30, 2016 - Fierce Biotech
SQZ Biotech has closed a $16 million Series B round to develop next-gen cell therapies. The financing will go to preclinical development for immunotherapy programs in oncology and other diseases. Founded in 2013, the Boston, MA-based company raised $5 million in a Series A led by Polaris Partners last year. Polaris also co-led the latest round alongside nanotech-focused investor NanoDimension with participation from other existing and new investors.
September 30, 2016 - Fierce Biotech
Boehringer Ingelheim has backed out of the $730 million lung cancer pact it struck with Hanmi Pharmaceutical last year. The decision follows a reevaluation of available clinical data and the competitive landscape, a process that led Boehringer to conclude it should cut its losses and focus on other pipeline programs. The news comes four months after Boehringer unveiled what it described as an "ambitious" clinical trial program designed to build on "the encouraging clinical data" generated by the third-generation EGFR therapy olmutinib in non-small cell lung cancer to date. At that time, Boehringer was talking up the prospects of pairing the drug with Merck's anti-PD-1 therapy Keytruda and was set to initiate two Phase III trials before the end of the year.
September 30, 2016 - Pharmaceutical Business Review
Catabasis Pharmaceuticals and Sarepta Therapeutics have announced a joint research collaboration to explore a combination drug treatment approach for Duchenne muscular dystrophy. The two companies will contribute their respective expertise to study an exon skipping treatment developed by Sarepta, together with an oral NF-kB inhibition treatment developed by Catabasis in a mouse model of DMD. Jill C. Milne, Ph.D., chief executive officer of Catabasis, said: "We are excited to work with Sarepta on this joint research collaboration, which to our knowledge is the first time two companies are testing a combination of investigational therapies to treat Duchenne. Although we believe edasalonexent has the potential to be a disease-modifying monotherapy, we think there is benefit to exploring innovative ways to make the most meaningful difference in this devastating disease.
September 30, 2016 - Pharmaceutical Business Review
Hanmi Pharmaceutical has entered into an exclusive development and license agreement with Genentech for the development and commercialization of its pan-RAF inhibitor, HM95573 which is currently in Phase I clinical development. Under the terms of the agreement, Genentech will obtain exclusive worldwide rights, except South Korea, to develop and commercialize HM95573. Hanmi will receive an initial upfront payment of $80 million and is eligible to receive payments based on achievement of certain predetermined development, regulatory and commercialization milestones totaling up to $830 million.
September 30, 2016 - Pharmaceutical Business Review
Bayer and DelSiTech have partnered to develop innovative drug delivery technology for ophthalmology. The companies have signed a collaboration and technology licence agreement for the worldwide application of DelSiTech's Silica Matrix drug delivery platform to a number of Bayer's compounds in ophthalmology. Andreas Busch, member of the Executive Committee of Bayer's Pharmaceuticals Division and Head of Drug Discovery, said: "Successful ocular drug delivery is one of the biggest challenges in developing novel drug therapies for ophthalmic diseases.This agreement will support our work on innovative treatment options for a range of different eye diseases.
September 30, 2016 - Fierce Biotech
Gene therapy player bluebird bio has been expanding more broadly into cancer immunotherapy and gene editing. As part of that, it's partnered with German biotech Medigene to develop and commercialize T cell receptor immunotherapies against four targets. A Phase I investigator-sponsored TCR trial with Medigene participation is expected to start next year. Medigene also plans to advance its own TCR into Phase I next year, with another planned for the following year. But none of these are part of the Medigene deal, for which clinical timing remains undisclosed.
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As an international, healthcare-focused merchant bank and financial advisory firm, we provide world-class services and capital to middle-market healthcare companies around the globe. We aim to keep our clients well-informed of healthcare news and events. With this additional insight in mind, together, we can recognize trends and opportunities that benefit our clients. We hope that you will reach out to Bourne Partners to help execute your healthcare operational and transactional needs. To learn more about our firm, visit our website or utilize the links below to engage with us on social media.
Sincerely,
The Bourne Partners Team
Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407
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