Week of October 10, 2016 | Vol. 5, Issue 40
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Allergan, not content with a series of big and small deals throughout the last month, has started October with, you've guessed it, another deal.
This time it will pay upfront a
quarter of a billion dollars, and as much as an extra $1.27 billion in total if all targets are met, for an exclusive worldwide license to develop and commercialize
MEDI2070 from AstraZeneca. On top of the upfront payout, there is also a $435 million and sales-based milestone payments of up to $725 million
The candidate is under testing for Crohn's disease and could also be used against ulcerative colitis, with testing currently in Phase II.
AstraZeneca, through its MedImmune biologics unit, has been working on MEDI2070 for more than four years after signing a pact with Amgen in 2012 to work on the med. This means that AstraZeneca will not see all the money from this deal, as it will need to stump up one-third of all of the payments coming out of the Allergan deal to Amgen.
Bahija Jallal, EVP at MedImmune, said: "This agreement demonstrates our sharp focus on three main therapy areas while creating value from the increased R&D productivity and innovative science in our pipeline through collaborations. Allergan has significant experience in gastrointestinal and inflammatory diseases and is the right partner to progress the development and commercialization of MEDI2070."
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Pfizer offloads Hospira infusion therapy unit to ICU Medical for $1B
The deal will see ICU Medical picking up all of Hospira's infusion offerings, including intravenous drugs and infusion pumps.
Pfizer started
entertaining offers for the pumps and devices unit
in May this year, saying at the time that it could reel in about $2 billion for the business. It initially acquired Hospira with eyes on its biosimilars and generic injectable drugs, but the devices that came with it don't fit in with the pharma company's established products business.
San Clemente, CA-based ICU Medical offers devices for use in areas such as critical care, oncology and infusion therapy. The acquisition will create a "pure-play infusion therapy company" with estimated combined revenues of $1.45 billion,
according to a statement
. The deal is expected to close in the first quarter of 2017. Shortly after Pfizer started taking bids for Hospira, it announced it would shut four distribution sitesin the U.S., laying off 104.
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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
15 transactions totaling $3,362
million
Supplies, Equipment & Services
18 transactions totaling $1,060 million
Healthcare IT & Managed Care
8 transactions totaling $439 million
Healthcare Facilities & Distributors
14 transactions totaling $100 million
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Pharma & Biotech
23 private placements totaling $700 million
Supplies, Equipment & Services
16 private placements totaling $60million
Healthcare IT & Managed Care
7 private placements totaling $11 million
Healthcare Facilities & Distributors
1 private placement totaling $0
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Pharma & Biotech
7 public offerings totaling $2,324 million
Supplies, Equipment & Services
2 public offerings totaling $1,813 million
Healthcare IT & Managed Care
0 public offerings
Healthcare Facilities & Distributors
1 public offering totaling $1 million
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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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October 3, 2016 - Fierce Biotech
Celgene has bought out Swiss biotech EngMab as the Big Biotech looks to broaden its research arsenal into blood cancers. In a brief update on its website, EngMab said that it is "proud to announce that it is now a wholly owned subsidiary of Celgene Corporation." Rumors about the deal had been growing over the past month. The fledgling upstart, which only started life back in 2013, focuses on T-cell bispecific antibodies (TCBs) that bind simultaneously to a target on a tumor cell and to the T-cell receptor complex, leading to killing of the malignant cell.
October 3, 2016 - Fierce Biotech
Specialty pharma spinout Castle Creek Pharmaceuticals has raised its first institutional round of $48 million entirely from active biotech crossover investor Fidelity Management and Research Company. Founded last year, the company has in-licensed a series of dermatology as well as ear, nose and throat candidates specifically for rare diseases with limited therapeutic options. The New Jersey-based biotech comes out of Marathon Pharmaceuticals; it was founded by Michael Derby, who founded Norphan Pharmaceuticals that was acquired by Marathon in 2013, and Jeffrey Aronin, who is the CEO of Marathon and previously founded Ovation Pharmaceuticals, which sold to Lundbeck in 2009.
October 3, 2016 - Fierce Biotech
The fall IPO filings are ramping up with two biotechs lining up to go out. These include an up to $172.5 million offering for the recently formed women's health player Myovant Sciences and an up to $86.3 million IPO for rare disease company Ra Pharmaceuticals. The former is aiming for a NYSE listing, while the latter is slated for the Nasdaq. There aren't any biotech IPO pricings lined up for this week--but there is a $75 million med tech IPO in the works for swallowable intragastric balloon maker Obalon Therapeutics, which had its device recently approved by the FDA.
October 3, 2016 - Bio Space
Dublin-based Carrick Therapeutics blasts out of the gate, launching with $95 million in funding. The company, which will be based in Dublin but have a research-and-development center in Oxford, UK, is taking a slightly different approach to the cancer biotech startup business. Instead of focusing on a single compound or biological mechanism, Carrick plans to build a portfolio of first-in-class therapeutics and by developing academic and pharma partnerships. It is currently working on three programs, although it hasn't specified what those are.
October 4, 2016 - Pharmaceutical Business Review
Allergan could pay as much as $1.52bn to MedImmune, the global biologics research and development arm of AstraZeneca, for the worldwide rights to an inflammatory diseases drug.The drug, MEDI2070, is currently being tested in mid-stage clinical trials for patients with moderate-to-severe Crohn's disease and ulcerative colitis.
October 4, 2016 - Fierce Biotech
ConvaTec, a medical products company that makes wound care dressings and colostomy bags, is looking to raise $1.8 billion in a public offering on the London Stock Exchange that could be London's largest this year. The IPO is also seen as a test of investor confidence in the wake of Britain's vote to leave the European Union, Reuters reported. As part of the public offering, Sir Christopher Gent, former chairman of GlaxoSmithKline, would be named chairman of ConvaTec. Back in 2008, GSK agreed to sell its ConvaTec division to a private equity partnership for $4.1 billion.
October 4, 2016 - Fierce Biotech
Recursion Pharmaceuticals has raised $12.9 million to scale up its computer-driven approach to drug development. The idea is to pull in phenotypic data from cellular images, build disease models and then feed in the effects of potential drug candidates to discover which compounds could treat a particular condition. As with many tech-focused drug discovery shops, Recursion is initially looking to apply its approach to the repurposing of existing compounds, a model it claims has already enabled it to snag partnerships with three of the top 10 pharma companies, including Sanofi. This approach allows Recursion to use data generated the first time an asset advanced down the pipeline to inform its own activities, giving it a head start as it tries to figure out which compounds are worth pursuing.
October 4, 2016 - Fierce Biotech
Amgen has become the latest big-name drugmaker to strike a deal to access Nuevolution's discovery platform. The Big Biopharma will work with Nuevolution to discover and develop oncology and neuroscience therapeutics, before going on to license promising programs in return for up to $410 million apiece in upfront and milestone payments. Having inked the pact, Nuevolution will apply its drug discovery platform to the task of identifying cancer and neuroscience compounds of interest to Amgen. The platform adds DNA tags to billions of small molecules, exposes them to the target and isolates the hits. By sequencing the DNA tag, Nuevolution can deduce the structures of the hit compounds, at which stage the most promising candidates are fine-tuned ahead of final lead optimization.
October 4, 2016 - Fierce Biotech
Daiichi Sankyo has partnered with startup AgonOx to develop novel drugs against an undisclosed immuno-oncology target. The pair is slated to work together on the preclinical development, and then after that the Japanese biopharma has the option to license the program for worldwide development and commercialization. This is the Portland, OR-based company's second major biopharma deal. It has another that dates back to 2011 with AstraZeneca's MedImmune arm. That deal is to develop a tumor-specific T-cell immunity stimulator based on AgonOx's OX40 agonist programs.
October 4, 2016 - Fierce Biotech
Buoyed by its recent, and controversial, FDA approval for its Duchenne drug Exondys 51, Sarepta has signed a pact potentially worth more than half a billion dollars with the U.K.'s Summit Therapeutics, giving it rights to its Duchenne candidate in Europe and elsewhere. Specifically, the two have penned the exclusive license to allow Sarepta rights in Europe, as well as in Turkey and the Commonwealth of Independent States to Summit's utrophin modulator pipeline, including its lead DMD clinical candidate--the midstage ezutromid.
Evotec invests $6M, deepens ties with cancer upstart Carrick
October 5, 2016 -
Fierce Biotech
Evotec says it has stumped up $6 million and set up a new collab with the embryonic biotech Carrick this week, helping it reach its total $95 million from the Series A funding round. The biotech-CRO hybrid says it has teamed up with the Dublin, Ireland-based company with the cash and also by providing "its full range of discovery and oncology services, through its discovery and preclinical platform," according to a joint statement. This builds on a pact the two already have.
October 6, 2016 - Fierce Biotech
Medicxi is putting up €10 million to support Kymo Therapeutics through to clinical proof of concept. Newly founded Kymo will use Medicxi's money to further Metabrain Research's work on inhibitors of kynurenine metabolism, a mechanism of action the partners think could address metabolic diseases including Type 2 diabetes. The agreement spins off research France's Metabrain has conducted on the kynurenine pathway into a startup focused squarely on getting an asset derived from the work to clinical proof of concept. Once Kymo has the data in hand, it plans to seek out partners capable of taking the program on through the clinic and onto the market.
October 6, 2016 - Pharmaceutical Business Review
Metabrain Research has signed an agreement with Medicxi, an European life sciences venture capital firm, for the inception of Kymo Therapeutics, incorporated in Cambridge. Kymo Therapeutics's ambition is to move forward Metabrain Research's proprietary program on kynurenine metabolism inhibitors towards clinical proof of concept, before seeking partners to complete development and ensure commercialization. Medicxi has committed up to € 10 million to Kymo Therapeutics.
October 7, 2016 - Fierce Pharma
AstraZeneca clearly isn't interested in what critics have to say about its rights-licensing and divestment strategy. Friday, it announced yet another selloff, giving it three on the week at a total value of up to $2 billion. The British drugmaker has inked a pact to hand over ex-U.S. rights for nasal spray Rhinocort Aqua to Johnson & Johnson affiliate Cilag GmbH, and it'll net $330 million in return. Rhinocort, used to treat inflammation inside the nose and swelling of the nasal lining, uses budesonide as its active ingredient--a compound better known as asthma and COPD med Pulmicort.
October 7, 2016 - Healthcare IT News
Welltok pulled in $33.7 million in a new round of funding and said it plans to use the investment to build out its CafeWell Health Optimization Platform. CaféWell enables population health managers to coach and inspire their clients to get healthier. The enterprise-level platform curates and connects consumers with benefits, resources and rewards, and it provides personalized action plans for each individual.
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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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