M&A Newsletter MedTech, Pharma and Pharma Services
www.pwc.de
Information on transactions in the European MedTech, Pharma and Pharma Services industry
Edition 6, February 2018
Transaction environment
M&A activity in the European MedTech, Pharma and Pharma Services
industries increased by over 10% in 2017 compared to the previous year
reaching a new high with 230 relevant transactions.
The elevated level of deal activity resulted from the vibrant M&A markets in the
MedTech and Pharma Services industries, which outweighed a rather dampened
M&A activity in the Pharma industry this year. Additional to various industry-
specific trends, the current macroeconomic environment continues to drive
European M&A deal momentum in these sectors, fostered by the ECB’s ongoing
low-interest policy and attractive financing conditions. As a consequence,
despite the high level of political and economic uncertainty in connection with
the implications of Brexit, the Trump’s administration policies as well as several
European elections, the number of billion-euro acquisitions rose from 5 to 13.
UK, Germany and France went head to head when it comes to the number of
hosted deals, together accounting for 43% of the total M&A deal number in the
MedTech, Pharma and Pharma Services industries.
Deals
MedTech
In 2017 we observed over 100 transactions in the European MedTech industry with over
€37.8bn cumulated enterprise value. This represents a strong increase in both the number of
transactions as well as the deal volume compared to the previous year (82 deals with a total
enterprise value of €4.3bn) and the fourth consecutive increase in MedTech deal activity since
2014.
2017 was marked with a number of large-sized MedTech deals. Essilor, the France-based global
ophthalmic company, merged with Luxottica, the Italian-based eyewear company (EV
€24.0bn). EQT Partners, the Swedish private equity firm, acquired a 20% stake in Otto Bock
HealthCare (EV €3.0bn), a German developer, manufacturer and distributor of prosthetics,
orthotics and mobility solutions, while PerkinElmer, the US-based provider of solutions in the
diagnostics, environmental and laboratory services industry, completed a €1.2bn strategic
acquisition of EUROIMMUN Medical Laboratory Diagnostics, a German producer of
diagnostics test systems for autoimmune diseases, infectious diseases and allergies.
While in 2016 private equity funds participated in 46 transactions, which constituted 56% of all
deals, in 2017 only 36 deals (34%), deals were backed by financial sponsors. The overall deal
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
volume with private equity participation in 2017, however, increased to €10.7bn, implying that
fewer but larger transactions were conducted in this segment. Prominent examples include the
acquisition of a 19.95% stake in ConvaTec Group, the UK-headquartered provider of solutions
for management of chronic conditions, by Novo A/S, the private equity and venture capital arm
of Novo Nordisk, for €1,170m as well as the acquisition of a 20% stake in Otto Bock HealthCare
GmbH by EQT Partners AB mentioned above.
Accounting for nearly half of all MedTech deals in 2017 and including all top three deals by
size, Germany, UK, and France were the most active geographical MedTech M&A markets with
21, 15 and 15 deals respectively contributing €12.4bn (33%) of €37.8bn total deal value. Last
year top three countries by the number of deals represented only 20% of the total enterprise
value transacted.
(For more information on recent MedTech deals, please refer to page 5)
Pharma
In 2017 the European Pharma M&A market was dominated by three megadeals, which
accounted for 90.1% of the total €39.3bn deal volume. Firstly, Johnson & Johnson acquired
Actelion Pharmaceuticals, a Switzerland-based biopharmaceutical company, for €27.6bn,
ending Johnson & Johnson’s years-long search for a target large enough to accelerate the
sluggish growth in recent years as well as to counter the risk of potential sales losses due to the
patent cliff and the introduction of biosimilar versions of Johnson & Johnson’s best-selling
arthritis drug Remicade by Pfizer and Merck & Co. Secondly, Cinven and Bain Capital, a US-
based private equity consortium, were finally successful in acquiring the required majority of
stocks for the takeover of STADA Arzneimittel, the German manufacturer of generic and
branded pharmaceuticals, for €5.2bn. Thirdly, Novartis acquired Advanced Accelerator
Applications, a France-based radiopharmaceutical company, for €2.9bn, thereby strengthening
own expertise and product portfolio in radiopharmaceuticals and related diagnostics.
However, the total number of deals in 2017, decreased from 65 to 54, representing a 17% drop
compared to the previous year, with the proportion of strategic and financial bidders remaining
approximately the same. A potential explanation for a lower level of European Pharma M&A
activity in 2017 could be the overall reluctance due to uncertainty about the effects of the
upcoming US tax reform and implications of the efforts of Trump’s administration to repeal
Affordable Care Act.
In 2017 the highest M&A activity was observed in the UK (15%), Switzerland (15%) and Russia
(11%), whereby the latter appeared in the list of top countries for the first time since the first
edition of this newsletter. Though 3 of 6 deals in Russia were cross-border, we consider this as
a temporary spike in activity without proper underlying macroeconomic trends. Moreover, the
recent issue brought to attention by international pharmaceutical giants operating in Russia,
relating to state procurement of generic drugs with patented active ingredients, puts into
question the future of foreign investments into the Russian pharmaceutical industry.
(For more information on recent Pharma deals, please refer to page 7)
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Pharma Services
The European M&A market for Pharma Services was vibrant in 2017 with 70 transactions, an
increase of more than 15 deals compared to 2016. The majority of these deals (69%) were of
strategic nature, indicating the ongoing consolidation phase in the industry. This trend is
reflected in the acquisition of Patheon, the Dutch contract manufacturing and development
company, by Thermo Fisher Scientific, the leading maker of diagnostic and testing equipment
for €6.5bn and Chiltern International Limited, a UK-based contract researcher being acquired
by Laboratory Corporation of America Holdings (“LabCorp”), the US-based provider of clinical
laboratory services and clinical tests, for €1.3bn later in the year.
The proportion of deals with private equity participation remained on a low level (31%),
however, at the same time financial investors more than doubled last year’s €1.1bn deal
volume, reaching €2.4bn in 2017. The level was mainly reached by the acquisition of Cerba
HealthCare, a France-based operator of medical biology laboratories by Partners Group
Holding, a listed Switzerland-based alternative asset management company and private equity
firm, together with Public Sector Pension Investment Board, a Canada-based state-owned
pension investment managing firm, for a total consideration of €1.8bn.
In line with the last year, UK and France remained the countries of choice when it comes to
acquiring a Pharma Services company. The two countries comprise one third of the whole deal
number, hosting 13 and 11 deals respectively with the total enterprise value of €3.6bn. Almost a
half of these deals (45%) were cross-border, which indicates the global character of the
consolidation trend and a strong foreign interest in the services capabilities and technological
know-how in UK and France.
(For more information on recent Pharma Services deals, please refer to page 9)
Outlook 2018
MedTech
M&A activity in the MedTech industry increased again in 2017, as it had been doing since 2014,
and the trend is not expected to stop any time soon in 2018, as the industry still remains rather
fragmented with small players, occupying individual product and geographical niches. With the
pace of internal innovation slowing down, bigger MedTech companies are likely to continue
strategic acquisitions of smaller, but more innovative peers as a way to stay at the forefront of
the industry.
In the era of rapid evolution of information technologies, we observe the emergence of
MedTech companies that focus their business efforts on development of software solutions for
diagnostics, analysis and presentation of medical data utilising modern advancements in big
data analytics and artificial intelligence. As the line between hardware medical devices and
applications is eroding, such companies are likely to be targeted for acquisitions by MedTech
device companies looking for a way to digitalise their product offerings and create an integrated
solution platform.
Furthermore, an increasing cost pressure fuelled by various drivers such as low-cost MedTech
providers and higher negotiation power of clients will further catalyse deal activity in 2018.
Greater interest in MedTech companies is expected from Pharma players, urged to digitalise
their business models and willing to complement drug products with value-add technological
features offering personalised drug-device product combinations.
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Pharma
In 2018 we expect the Pharma industry to remain one of the driving forces in the European
M&A market as leading Pharma companies struggle to realise higher organic growth rates and
are at the same time urged to fuel product pipelines.
The necessity to identify inorganic sources of revenues is driven by the impending expirations
of blockbuster drug patents and subsequent pressure from manufacturers of generics and
biosimilars. As a consequence, we are likely to see higher competition from middle and big
Pharma companies for acquisition of smaller drug pipelines to manage the risk of investing
money in own R&D activities. Especially lucrative are those drugs that cleared Phase I and
Phase II of the clinical research process or those that are intended for treatment of rare
diseases. Furthermore, in 2018 we may see further divestments of excess production capacities
and non-core segments to focus on key therapeutic areas in the urge to increase efficiency and
to free financial resources to be reinvested in higher margin activities.
The expectation of an elevated level of the future M&A activity in the Pharma industry is
further justified by the approval of the US tax reform late in 2017, allowing the allocation of
abundant overseas cash capital held by US pharma industry players. However, the uncertainty
regarding the efforts of the Trump’s administration to revamp healthcare insurance industry
has not come to end. If successful, it may push Americans into purchasing cheaper insurance
plans, thus reducing demand for innovative, but expensive pharmaceutical products.
Pharma Services
We expect M&A activity in the Pharma Services industry to remain at its elevated level in 2018
as there are no signs for the ongoing industry consolidation process to come to a halt. This is
primarily driven by two specific industry trends. First of all, as pharma companies are
continuing to outsource non-core activities, such as production or specific development steps,
they are also striving to reduce the number of external suppliers, thus driving the need for
consolidation. Given that, CROs and CMOs are striving to become one-stop solution platforms
to fulfil the demand of pharma companies and to secure strategic partnerships with high
volumes and long-term commitment.
At the same time, Pharma Services providers need to hold available technological capabilities
and fitting capacities to be able to handle new requests of particularly large pharma companies.
As a result, the leading players and platforms held by private equity investors seek further
complementary assets to close existing gaps in their production network. In addition to
technology considerations, Pharma Services companies benefit from larger-scale operations by
optimising utilisation of their capacities according to the respective volume requests.
Inorganic growth is commonly considered to be more efficient to achieve the objectives above
than organic growth as it saves time and typically brings existing customer relationships to the
buyer. Therefore, we anticipate a high appetite for Pharma Services companies who bring
specific technologies, right scale and/or an attractive customer base to the buyer.
Sources: PwC research (company information, market reports, Mergermarket, press releases)
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
MedTech Selected European M&A transactions in the MedTech industry
(01/2017–12/2017)
Transaction volume and value 2017*
Top countries by deal volume Percentage of deals with PE participation
Selected transactions in 2017 in the MedTech industry:
MedTech
Date Acquirer Target Country Target description EV
(EURm) EV/
Revenues EV/
EBITDA
Dec-17
Magnum Capital Industrial Partners
Indiba S.A. ES
Designer and manufacturer of medical and aesthetic equipment
55 2.8x 7.9x
Dec-17 Medtronic Inc.
Crospon Limited
IE
Producer of medical devices for endoscopic diagnostics
38 n.a. n.a.
Oct-17 Ambu A/S invendo medical GmbH
DE Developer of sterile, single use colonoscopies
185 n.a. n.a.
Oct-17 CryoLife Inc. Jotec GmbH DE
Manufacturer of medical devices for aortic and peripheral vascular diseases
192 n.a. n.a.
Oct-17 Stryker Corporation
Vexim SA FR
Developer of invasive medical instruments used in treatment of vertebral fractures
146 8.4x n.a.
Jul-17 Koninklijke Philips N.V.
TomTec Imaging Systems GmbH
DE
Diagnostic medical imaging software solutions for cardiology
n.a. n.a. n.a.
PwC was the exclusive financial advisor on the sale of TomTec Imaging Systems to Koninklijke Philips. For more information please refer to page 12.
9 8 911
6
10
17
3
911
4
9
24.3
0.0
7.7
0.2 0.0
4.60.3
0.00.0 0.5 0.0 0.2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecVolume Value (EUR bn)
19%
14%
14%12%
41%
DE UK FR NL Other
34%
66%
PE Strategic only
* Transaction value refers to those transactions for which data on enterprise values are available
106 deals 106 deals
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
MedTech
Date Acquirer Target Country Target description EV
(EURm) EV/
Revenues EV/
EBITDA
Jul-17 Fortissimo Capital
Tuttnauer Europe B.V.
NL
Manufacturer of autoclave and plasma sterilizers and washer disinfectors
88 1.8x n.a.
Jun-17 Roche Holding AG
mySugr GmbH
AT
Provider of an app-based all-around solution for diabetes management
n.a. n.a. n.a.
Jun-17 EQT Partners AB
Otto Bock HealthCare GmbH (20% Stake)
DE
Developer and manufacturer of prosthetics, orthotics and mobility solutions
3,015 3.4x n.a.
Jun-17 Ahlstrom Capital Oy
Detection Technology Plc (38.77% Stake)
FI Provider of X-ray imaging systems, i.a. for medical imaging
237 3.1x 13.7x
Jun-17 PerkinElmer Inc.
Euroimmun Medical Laboratory Diagnostics
DE
Manufacturer of medical diagnostics devices, software and consumables
1,200 n.a. n.a.
Jun-17 Novanta Inc.
W.O.M. World of Medicine GmbH
DE
Manufacturer of medical devices for minimal invasive surgery
115 1.6x 10.0x
Apr-17 Hamilton Thorne Inc.
Gynemed GmbH & Co. KG
DE
Manufacturer of surgery and conservative gynaecology products
14 1.6x 5.3x
Apr-17 Bio Telemetry Inc.
LifeWatch AG
CH Provider of remote cardiac monitoring solutions
234 2.2x n.a.
Mar-17 Boston Scientific Corporation
Symetis SA CH Developer of heart valve replacement devices and systems
405 n.a. n.a.
Mar-17 Novo A/S
ConvaTec Group PLC (19.95% Stake)
UK
Developer of medical products and technologies against chronic diseases
7,254 4.7x 23.4x
Mar-17
Shanghai Fosun Pharma. Co. Ltd.
Breas Medical AB (80% Stake)
SE Manufacturer of respiratory support medical devices
n.a. n.a. n.a.
Mar-17 GE Healthcare Ltd.
Monica Healthcare Limited
UK
Manufacturer of early-stage wireless maternal-fetal monitoring devices
n.a. n.a. n.a.
Jan-17 AEVIS VICTORIA SA
LifeWatch AG (88.01% Stake)
CH Provider of remote cardiac monitoring solutions
211 2.0x n.a.
Jan-17 Essilor International SA
Luxottica Group S.p.A.
IT
Designer and manufacturer of fashion, luxury and sports eyewear
23,965 2.6x 12.9x
Average 3.1x 12.2x
Median
2.6x 11.4x
Sources: PwC research (Capital IQ, company information, Mergermarket, press releases)
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Pharma Selected European M&A transactions within the Pharma industry
(01/2017–12/2017)
Transaction volume and value 2017*
Top countries by deal volume Percentage of deals with PE participation
Selected transactions in 2017 in the Pharma industry:
Pharma
Date Acquirer Target Country Target description EV
(EURm) EV/
Revenues EV/
EBITDA
Dec-17
Hefei SARI V-Capital Management Co. Ltd
Nerviano Medical Sciences SRL (90% Stake)
IT
Pharmaceutical research and development company
n.a. n.a. n.a.
Dec-17 Novartis AG
Advanced Accelerator Applications SA
FR Developer of molecular nuclear medicine diagnostic
2,921 26.7x n.a.
Nov-17 EMS S.A. Galenika a.d. (93.7% Stake)
RS Manufacturer of generic drugs
42 n.a. n.a.
Oct-17 Investor consortium
ADC Therapeutics SA
CH Developer of proprietary antibody drug conjugates
170 n.a. n.a.
Sep-17 Derma-pharm AG
RIEMSER Pharma GmbH (unit only)
DE Hyperthermic medical devices business unit
n.a. n.a. n.a.
Sep-17 Clinigen Group Plc
Quantum Pharma Plc
UK
Developer of niche medicines and provider of services to the healthcare sector
167 1.7x 48.4x
Aug-17 Karo Pharma AB
Weifa ASA NO
Manufacturer of non-prescription, OTC pharmaceutical products
168 3.8x 19.0x
3
12
7
9
3
54
7
5
3
5
27.8
0.00.0
2.70.0 0.0
5.3
0.2 0.3 0.0 0.02.9
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecVolume Value (EUR bn)
15%
15%
11%
9%
50%
UK CH RU NL Other
48%52%
PE Strategic only
* Transaction value refers to those transactions for which data on enterprise values are available
54 deals 54 deals
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Pharma
Date Acquirer Target Country Target description EV
(EURm) EV/
Revenues EV/
EBITDA
Aug-17
Investor consortium led by SoftBank
Roivant Sciences, Inc.
CH
Late-stage clinical development of nonstrategic drug candidates
n.a. n.a. n.a.
Jul-17 Emergent BioSolutions Inc.
Sanofi SA (unit only)
FR FDA-approved ACAM2000 smallpox vaccine business unit
85 n.a. n.a.
Jul-17 Alvogen Inc. Bittner Pharma OOO
RU
Manufacturer of medicinal balm and homeopathic products
29 1.0x n.a.
Jul-17
Investor consortium of Cinven and Bain
STADA Arzneimittel AG
DE
Developer of APIs and manufacturer of generic pharmaceuticals
5,191 2.4x 13.0x
May-17 Chiesi Farmaceutici S.p.A.
Horizon Pharma plc (European subsidiaries)
NL
NL, FR and DE-based subsidiaries focused on respiratory diseases
n.a. n.a. n.a.
Apr-17 Cathay Fortune Corp
Epigenomics AG
DE
Developer of blood-based tests for screening and diagnosis of cancer
159 37.9x n.a.
Apr-17 Fresenius Kabi AG
Merck KGaA (unit only)
CH Biosimilar business unit
170 n.a. n.a.
Apr-17 Creat Group Corporation
Biotest AG DE
Provider of bio therapeutic drugs and plasma protein products
1,203 2.2x 13.9x
Apr-17
Shareholders of Actelion Pharma-ceuticals Ltd
Idorsia Ltd CH
Firm specialising in discovery and development of small molecules
694 n.a. n.a.
Apr-17 Astellas Pharma Inc.
Ogeda SA BE
Clinical-stage drug discovery company developing small molecule drugs
500 n.a. n.a.
Jan-17 Piramal Enterprises Limited
Mallinckrodt Plc (unit only)
IE Intrathecal therapy business unit
160 3.8x n.a.
Jan-17 Johnson & Johnson
Actelion Pharma-ceuticals Ltd
CH
Developer of pharmaceuticals for the treatment of unmet medical needs
27,591 12.2x 27.4x
Jan-17 Agile Pharma B.V
Generis Farma-ceutica S.A.
PT Manufacturer of generic pharmaceuticals
135 n.a. n.a.
Average 10.2x 24.3x
Median
3.8x 19.0x
Sources: PwC research (Capital IQ, company information, Mergermarket, press releases)
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Pharma Services Selected European M&A transactions within the Pharma Services industry
(01/2017–12/2017) Transaction volume and value 2017*
Top countries by deal volume Percentage of deals with PE participation
Selected transactions in 2017 in the Pharma Services industry:
Pharma Services
Date Acquirer Target Country Target description EV
(EURm) EV/
Revenues EV/
EBITDA
Nov-17
Almac Sciences Group Limited
Bioclin Research Laboratories Limited
IE
Provider of analytical services and rapid reporting for drug development
n.a. n.a. n.a.
Oct-17
Avara Pharma-ceutical Services Inc.
AstraZeneca Plc (facility in Reims)
FR
Pharmaceutical manufacturing and distribution facility of AstraZeneca Plc
n.a. n.a. n.a.
Sep-17 Ergomed plc PSR Group B.V.
NL
CRO specialising in the development of drugs for orphan diseases
6 1.2x 16.8x
Sep-17 Recipharm AB
Roche Holding AG (facility in Leganes)
ES
Solid dose pharmaceuticals manufacturing facility of Roche Holding AG
n.a. n.a. n.a.
Aug-17 Immuno- Precise Antibodies
U-Protein Express BV
NL
CRO engaged in production of proteins and antibodies
7 4.1x n.a.
Jul-17
Laboratory Corporation of America Holdings
Chiltern International Limited
UK Contract research organisation
1,344 3.2x 24.7x
Jul-17
Avara Pharma-ceutical Services Inc.
Pfizer Italia Srl (facility in Liscate)
IT Sterile manufacturing facility of Pfizer Italia Srl
n.a. n.a. n.a.
6
8
3
7
9
7
9
7
3
6
32
2.0
0.4 0.3 0.1
6.5
0.41.5
0.0 0.0 0.1 0.0 0.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecVolume Value (EUR bn)
19%
16%
10%10%
46%
FR UK IT DE Other
31%
69%
PE Strategic only
* Transaction value refers to those transactions for which data on enterprise values are available
70 deals 70 deals
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Pharma Services
Date Acquirer Target Country Target description EV
(EURm) EV/
Revenues EV/
EBITDA
Jul-17 TPI Enterprises Limited
Vistin Pharma ASA (unit only)
NO Opioids and tablet manufacturing business
17 1.5x n.a.
Jul-17 Eurofins Scientific SE
Amatsigroup SAS
FR CDMO that provides preclinical and clinical phase services
130 n.a. n.a.
Jun-17 CapVest Partners LLP
NextPharma Technologies Limited
UK
Provider of pharma contract manufacturing and distribution services
n.a. n.a. n.a.
Jun-17
Zhejiang Xianju Pharma. Co. Ltd.
Newchem S.P.A.; Effe-chem S.r.l.
IT
API CMO with focus in fields of steroids, progestogens and prostaglandins
n.a. n.a. n.a.
Jun-17 Novacap SAS PCAS SA FR
Developer of complex molecules for life sciences and specialty chemicals markets
305 1.6x 11.2x
May-17 Investor consortium
Minafin Group (minority stake)
BE Manufacturer of APIs, organic intermediates and fine chemicals
n.a. n.a. n.a.
May-17 Lonza Group Limited
PharmaCell B.V.
NL CMO focusing on cell therapy and regenerative medicine
n.a. n.a. n.a.
May-17 ABA Chemicals Corporation
Amino Chemicals Limited
MT Manufacturer of APIs and provider of CMO services
19 1.4x 5.8x
May-17
Thermo Fisher Scientific Inc.
Patheon N.V. NL
Contract manufacturing and development organisation
6,481 3.8x 22.8x
Apr-17 Mitsui & Co. Ltd.
CJSC R-Pharm (10% stake)
RU Manufacturer of APIs and finished dosage forms
n.a. n.a. n.a.
Feb-17
Lianhe Chemical Technology Co. Ltd.
Fine Industries Limited
UK
Manufacturer of fine chemicals and active pharmaceutical ingredients
n.a. n.a. n.a.
PwC was the exclusive financial advisor on the sale of Fine Industries to Lianhe Chemical Technology. For more information please refer to page 13.
Jan-17 Sonic Healthcare Limited
Medi-zinisches Labor Bremen GbR
DE
Provider of laboratory testing services in the areas of drug monitoring
63 2.1x n.a.
Jan-17 Investor consortium
Cerba HealthCare SAS
FR Provider of medical biology testing services
1,800 2.9x n.a.
Average 2.4x 16.3x
Median
2.1x 16.8x
Sources: PwC research (Capital IQ, company information, Mergermarket, press releases)
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Public comparables Multiples of European listed MedTech, Pharma and Pharma Services companies (sorted by market cap)
Multiples of European public companies
Company EBITDA
margin1) Market
Cap2) EV2)
EV/Revenues EV/EBITDA
LTM3) 2018E1) LTM3) 2018E1)
MedTech
Medtronic 31% 91,021 104,065 4.2x 4.3x 13.6x 13.8x
Essilor 20% 24,645 27,322 3.7x 3.8x 15.8x 14.9x
Coloplast 36% 14,069 14,180 6.8x 6.4x 18.7x 18.4x
Smith & Nephew 29% 12,677 14,063 3.5x 3.4x 12.4x 11.8x
bioMérieux 21% 8,839 9,121 4.1x 3.8x 19.5x 18.2x
Sonova 22% 8,496 8,912 4.0x 3.8x 18.7x 16.5x
William Demant 22% 6,035 6,694 3.9x 3.6x 17.9x 16.5x
DiaSorin 39% 4,052 3,939 6.3x 5.6x 16.4x 14.6x
Getinge 22% 3,298 4,827 1.6x 2.2x 8.6x 10.8x
Elekta 17% 2,633 2,830 2.4x 2.5x 14.4x 12.5x
Average 4.1x 3.9x 15.6x 14.8x
Median 4.0x 3.8x 16.1x 14.7x
Pharma
Roche 39% 179,694 193,916 4.2x 4.1x 10.6x 10.4x
Novartis 29% 163,877 181,117 4.4x 4.3x 13.9x 13.7x
Sanofi 28% 90,016 97,727 2.7x 2.8x 9.4x 9.1x
Bayer 24% 85,899 90,453 1.9x 2.5x 8.2x 9.3x
AstraZeneca 28% 72,976 85,045 4.5x 4.6x 17.2x 16.1x
GlaxoSmithKline 34% 72,866 92,840 2.7x 2.7x 9.3x 8.1x
Allergan 46% 45,308 70,157 5.4x 5.6x 13.0x 11.5x
Shire 42% 39,617 56,724 4.6x 4.5x 11.0x 10.4x
Merck 29% 39,021 49,563 3.2x 3.2x 11.1x 11.3x
Mylan 26% 18,902 30,523 3.1x 3.0x 9.7x 8.8x
Average 3.7x 3.7x 11.3x 10.9x
Median 3.7x 3.6x 10.8x 10.4x
Pharma Services
Fresenius Medical Care 17% 26,926 34,863 2.1x 1.9x 11.3x 10.3x
Lonza 18% 16,727 15,470 4.1x 3.0x 19.0x 11.6x
Steris 22% 6,196 7,162 3.3x 3.4x 15.7x 13.9x
ICON 23% 5,058 5,105 3.5x 2.7x 15.4x 13.9x
Orion 31% 4,406 4,424 4.1x 4.2x 13.8x 13.7x
Dechra Pharmaceuticals 23% 2,205 2,341 5.8x 5.1x 26.8x 19.2x
Mallinckrodt 39% 1,785 6,334 2.4x 2.9x 11.6x 6.9x
Bachem 28% 1,783 1,847 8.9x 7.1x 32.4x 23.3x
Siegfried 14% 1,087 1,147 1.9x 1.6x 13.6x 9.6x
Recipharm 13% 630 993 1.8x 1.8x 13.2x 11.6x
Average 3.8x 3.4x 17.3x 13.4x
Median 3.4x 2.9x 14.6x 12.7x
1) At fiscal year end 2) In EURm 3) Last twelve months; Source: Capital IQ, as of 31/12/2017
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M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
PwC M&A is your preferred M&A advisor for European mid-cap transactions
PwC M&A acted as exclusive financial advisor of TOMTEC on its sale to the Netherlands-based health technology conglomerate Philips
Transaction summary:
TOMTEC has successfully extended its business from an
ultrasound modality OEM supplier to a healthcare IT software
suite for cardiovascular image analytics.
PwC advised TOMTEC’s shareholders and management
throughout the whole process.
Aside from the overall process coordination, PwC M&A supported
the client especially during the process preparation phase. The PwC
team was sparring partner for TOMTEC’s business plan and
advised the management team.
PwC M&A acted as the exclusive financial advisor to the shareholders of Sterinova on the sale to B Braun
Transaction summary:
Founded in 2012 and based in St-Hyacinthe, Quebec, Sterinova
develops, manufactures and distributes ready-to-use sterile
injectable and premix intravenous bags. The company meets the
rigorous standards required by the guidelines of Good
Manufacturing Practices (GMP).
PwC acted as exclusive financial advisor to the founders of
Sterinova, running a highly focused international sell-side process
to secure the best solution for the business.
The addition of Sterinova complements B. Braun’s product offering
in the area of ready-to-use products especially prefilled syringes
and premix bags to the medical specialists’ community via one
existing product and a compelling product pipeline. It also
provides a significant increase on the group’s global manufacturing
capacity in the ready-to-use sterile manufacturing market.
2017
The shareholders
2017
have sold
to
Vendor advised by
The shareholders
to
have sold a majority stake in
Vendor advised by
13
M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
PwC M&A acted as the exclusive financial advisor to NorthEdge Capital on the sale of Fine Industries to Lianhe Technology Company
Transaction summary:
UK-based Fine Industries Group is a leading European contract
manufacturer of products and solutions used in agrochemical and
life sciences. It operates an FDA inspected and approved
manufacturing site at Seal Sands, Middlesbrough.
PwC acted as exclusive financial advisor to NorthEdge Capital,
bringing expert tactical advice in management of a bilateral process
under strict timetable, thereby delivering strategic value.
Fine Industries will become Lianhetech’s European base, allowing
the organisation to operate in closer proximity to its customers and
markets in crop protection, pharma and performance chemicals.
The transaction also extends the business’ portfolio of product
development services and manufacturing solutions.
to
2017
has sold
Vendor advised by
14
M&A Newsletter MedTech, Pharma and Pharma Services Edition 6, February 2018
Your PwC MedTech and Pharma team
Please contact our M&A MedTech and Pharma team for any questions, suggestions or comments on the newsletter. We look forward to receiving your feedback.
Alexander von Friesen
+49 69 9585 5487
Alexander Wenzel
+49 69 9585 3466
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