Week of February 8th, 2021 | Vol. 10, Issue 6

In This Issue Featured Headlines Recent Industry Transactions Industry Trading Comps Recent Industry Headlines Market Reports Upcoming Events Quick Links Who We Are LinkedIn Corporate Site LinkedIn M&A Discussion Group Daybreak Consumer Care Contact Information Xan Smith Managing Director Business Development xsmith@bourne-partners.com Jeremy C. Johnson Managing Director Head of M&A and Capital Advisory jjohnson@bourne-partners.com

INDUSTRY M&A SNAPSHOT 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.

For more information about our consumer healthcare JV with The Emerson Group, Daybreak Consumer Care, click here.

MARKET REPORTS Recent Materials Providing Insight Into Healthcare Related Industries

Jazz Pharmaceuticals | GW Pharmaceuticals February 2021

Teligent | Series C Noteholders | Senior Leaders January 2021

Nordic Capital | Advanz Pharma Deal Profile January 2021

EOY Pharma Services Sector Snapshot January 2021

Current M&A Pipeline Representative Current Retained Sell-Side And Partnering Opportunities

Project Trident Buy-side | Generic Pharma | Manufacturing liquid generics Project Aspen Sell-side | CDMO | Multinational CDMO headquartered in US Project Athena Sell-side / Licensing | Medical Device | Novel device for pelvic organ prolapse Project Bulldog Sell-side | Pharma Services| Life sciences consulting firm

Jazz leaps into epilepsy with $7.2B buyout of cannabinoid drugmaker GW Pharma

Earlier this year, Jazz Pharmaceuticals floated a "dramatic" shift to new drug revenue by 2022—a plan buoyed by its own cancer and sleep disorder launches in 2019 and 2020, and a fourth targeted for 2021. Now, the company is laying out a hefty chunk of change to expand its treatment focus and bring an entirely new drug into the mix. Jazz agreed to pony up $7.2 billion for cannabinoid hotshot GW Pharmaceuticals, whose epilepsy med Epidiolex could be on its way to blockbuster sales. The deal will move Jazz into the epilepsy market, expanding its current offerings beyond sleep disorders and cancer. The acquisition breaks down like this: Jazz will shell out $220 per American depositary share of GW, $200 of that in cash and $20 in Jazz common stock. That works out to a roughly 50% premium over GW's Tuesday closing price. Read more at Fierce Pharma.

RECENT INDUSTRY TRANSACTIONS 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.

M&A TRANSACTIONS

Pharma & Biotech 21 transactions totaling $10,671 million Supplies, Equipment & Services 31 transactions totaling $424 million Healthcare IT & Managed Care 8 transactions Healthcare Facilities & Distributors 17 transactions totaling $95 million

PRIVATE PLACEMENTS

Pharma & Biotech 28 transactions totaling $1,313 million Supplies, Equipment & Services 25 transactions totaling $450 million Healthcare IT & Managed Care 14 transactions totaling $126 million Healthcare Facilities & Distributors 2 transactions totaling $16 million

PUBLIC OFFERINGS

Pharma & Biotech 39 transactions totaling $4,714 million Supplies, Equipment & Services 18 transactions totaling $3,437 million Healthcare IT & Managed Care 0 transactions Healthcare Facilities & Distributors 2 transaction totaling $161 million

INDUSTRY TRADING COMPS 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.

RECENT INDUSTRY TRANSACTIONS 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.

With €1.7B in savings in the bank, Sanofi pumps up its cost-cutting target by €500M February 5, 2021 - Fierce Pharma In 2020, Sanofi's cost savings amounted to €1.7 billion as it ratcheted back certain businesses, improved efficiency in its operations and focused on “smart spending," the company said. That's 85% of its stated 2022 goal of €2 billion—so Sanofi is adding €500 million to that 2022 target, execs said Friday. 23andMe intertwines with Branson's Virgin Group to go public in $3.5B SPAC deal February 4, 2021 - Fierce Biotech 23andMe is going public through a $3.5 billion deal spearheaded by Sir Richard Branson’s Virgin Group. The consumer-focused genetic testing provider will be claimed by a special purpose acquisition company, or SPAC, launched by the multinational conglomerate: the descriptively dubbed VG Acquisition Corp. The cash-and-stock deal is set to close by the end of June, with plans to trade on the New York Stock Exchange under the ticker “ME.” Kaiser Permanente taps Microsoft, Accenture for multiyear cloud partnership February 3, 2021 - Fierce Healthcare Kaiser Permanente is collaborating with Accenture and Microsoft to beef up its cloud computing capabilities and improve digital experiences for clinicians and patients. The multiyear agreement will leverage Microsoft Azure to enable stronger cloud computational power and data insights readily available to care teams, so Kaiser’s members—and patients—will benefit from more timely and personalized healthcare, the health system said. Edesa Biotech Receives C$14 million for COVID-19 Study February 2, 2021 - Access Wire Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, has secured a commitment of up to C$14 million (US$ 11 million) from the Government of Canada to complete the Phase 2 portion of a Phase 2/Phase 3 clinical study of its investigational drug, EB05, for the treatment of hospitalized COVID-19 patients. The funding will also help fund certain pre-clinical research intended to broaden the utility of the company's experimental therapy, including treatments for other respiratory pathogens. Olatec Therapeutics’ Lead Compound, Dapansutrile, a Selective NLRP3 Inhibitor, Prevents the Inflammatory Response and Restores Cognitive and Behavioral Deficits in a Mouse Model of Alzheimer’s Disease December 29, 2020 - Business Wire Olatec Therapeutics LLC announced the publication of data demonstrating the benefits of its selective NLRP3 inhibitor, dapansutrile, in a mouse model of Alzheimer’s Disease. The data are published in the journal Proceedings of the National Academy of Sciences of the United States of America. The study shows oral dosing with dapansutrile inhibits pathophysiological inflammatory processes, recovers significant cognitive losses and prevents neuroinflammation in the brains of transgenic mice induced with Alzheimer’s Disease.

Welcome to Bourne, let's talk. Since our founding in 2001, Bourne Partners has remained focused on fulfilling the unique needs of established, middle-market healthcare and pharmaceutical companies across the globe. Our track record includes advising middle market companies in healthcare M&A assignments totaling more than $7 billion, and growing companies into successful and well-positioned pharmaceutical enterprises.