q2 2009 advisory signs of appetite -...
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Bionest Partners19 rue du Général Foy75008 ParisFranceTel: +33 1 58 05 14 00
Tower 49, 12th floor12 East 49th StreetNew York, NY 10017 USATel: +1 (646) 386 2900
Frédéric Desdouits
Managing Partner
Georges-David Medina
Partner
Catherine Pichereau
Manager
Nicolas Brodetsky
Associate Manager
Thomas Ranson
Associate
Louis Labriffe
Analyst
Myriam Makhloufi
Analyst
Contact:[email protected]
Financial
Advisory
Newsletter
► Research-based Companies Valuation
Europe valuation is catching-up
► Initial Public Offerings
-
► Follow-on Offerings
The US market remains active
► Equity Indices and Sub-Sector Trackers
Confirmed Q1 Biotech rebound
Equity Markets
Mergers & Acquisitions in Biotech
► Transactions
Slowdown versus 2008
► Partnerships at and above $100m
Preclinical : the place to be
► Buy Outs
Bottom reached in Q1?
Private Equity in Europe
► We bring quality financial services to the healthcare industry
Selected Bionest Track Record
Pages 2 to 5
Page 8
Page 9
Pages 6 & 7
Q2 2009
Signs of appetite
2007
Has Sold Ginkor Fort
to
2008
Assessment of
Oncology Franchise
For Acquisition from
Sole Advisor Sole Advisor
2008
Sole Advisor
Has Out-licensed
Preclinical OP-R003
to
112
50
150
250
350
15 20 25 30
Average Pipeline Size (*)
Average M
PV in USDm
USEU
Cancer
40%
Neurology
16%
Anti-Infectious
13%
Cardiovascular
12%
Inflammatory &
Autoimmune
12%
Vaccines
5%
Others
2%
Research-based Companies Valuation
Contact:[email protected]
June 2009Page 2 of 10
Equity Markets
Global Overview
EU vs. US – All Therapeutic Areas EU & US – Breakdown by Therapeutic Area
Regional
What is Bionest MPVTM?
► Bionest MPV™ (Market Pipeline Value) is a proprietary
benchmarking approach that compares the value of 162
research-based, mainly loss making, publicly listed
companies in Europe and in the United States
► Bionest MPVTM is based on a pipeline scoring system and the
value of publicly traded companies
► This approach allows to quickly assess the value of a clinical-
stage portfolio of products with a limited amount of information
Regional & Therapeutic Historical Breakdown
* Based on Bionest's proprietary scoring system Note: Bubble size represents the number of companies
Sources: Bionest Research, FactSet, BioCentury, Dowjones
Sources: Bionest Research, FactSet, BioCentury, Dowjones
► Europe outperformed the US until early June
► Cardiovascular and anti-infectious remain highly ranked
Bionest MPV™ Universe
Therapeutic Area
► The spread between Europe and US is narrowing down
EU & US EU US
+11%
+11%
2423
26
32
10 77
Global Average
Cardiovascular
Neurology
Infl. & Autoimmune
Anti-Infectious
Vaccines
Cancer
0
100
200
300
400
500
600
0 10 20 30 40 50 60
Average Pipeline Size (*)
Average MPV in USDm
16221
23
10
31
69
21
0
5
10
15
20
25
03/04/09
10/04/09
17/04/09
24/04/09
01/05/09
08/05/09
15/05/09
22/05/09
29/05/09
05/06/09
12/06/09
19/06/09
26/06/09
Point Value in USDm
Cardiovascular Infl. & Autoimmune Anti-Infectious Cancer
0
5
10
15
01/04/09 01/05/09 01/06/09
Point Value in USDm
Initial Public Offerings
Contact:[email protected]
June 2009Page 3 of 10
Equity Markets
Cumulative Amount Raised and Number of IPOs
European Biotech Listings
Sources: Bionest Research, FactSet, BioCentury, Dowjones
EU vs. US – Amount Raised EU vs. US – Number of IPOs
US EUUS EU
Sources: Bionest Research, FactSet, BioCentury, Dowjones
Company Country
Company Name
Trading Place
� How to read it?
Alternext
Eurolist A
Eurolist B
Eurolist C
Other Exchanges
Genfit
Alternext
Cytotools
Frankfurt
4SC
Frankfurt Zurich
NorDiag
Oslo Copenhagen
BioAlliance Wilex
Euronext Euronext Frankfurt
Ipsen Bioxell AlphaHelix Santhera Vita 34 Vivalis
Euronext Zurich Stockholm Zurich Frankfurt Euronext
Exonhit Curalogic Biovitrum Innate Tigenix AMT
Alternext Copenhagen Stockholm Euronext Euronext Euronext
NascaCell Genovis Biofrontera Cosmo Exiqon Hybrigenics
Oslo Frankfurt Stockholm Frankfurt Zurich Copenhagen Alternext
Orexo Geneart Liponova Algeta Addex Merrion PCI Biotech
Stockholm Frankfurt Oslo Frankfurt Oslo Zurich Dublin Oslo
Speedel Jerini Renovo OctoPlus Cellectis GenOway MolMed Ipsogen
Zurich Frankfurt London Euronext Euronext Alternext Alternext Euronext Milan Alternext
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Onco
Methylome
Newron
Pharma
Lifecycle
Pharma
AblynxThrombo-
genics
Clavis
Pharma
Biotec
Pharmacon
31%
82%
50%
64%
55%
31%
30%
28%94%
69%
18%
50%
36%
45%
69%
70%
72%
19
135
430
221
388
106
641
469
749
37
360
61
0
100
200
300
400
500
600
700
800
3Q054Q051Q06 2Q063Q064Q061Q072Q073Q07 4Q07 1Q082Q083Q084Q081Q09 2Q09
Cumulative Amount Raised
Bars
- in E
URm
0
200
400
600
800
1,000
1,200
1,400
Last 12 Months Cumulative Amount Raised
Lin
es - in E
URm
1
8
10
5 5
2
4
25
2
6
8
10
2
7
13
65 5 2
5
10
5
11
7
16
13
15
2
10
2
0
2
4
6
8
10
12
14
16
18
20
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Number of IPOs
Bars
0
5
10
15
20
25
30
Last 12 Months Cumulative Number of IPOs
Lin
es
1
Follow-On Offerings
Contact:[email protected]
June 2009Page 4 of 10
Equity Markets
Europe
United States
2Q09: 9 for the US vs. 1 for EU
Sources: Bionest Research, FactSet, BioCentury, Dowjones
Sources: Bionest Research, FactSet, BioCentury, Dowjones
Sources: Bionest Research, FactSet, BioCentury, Dowjones
150
55
99
253
0
261635
2611
1
2
1
4
111
1
4
0
50
100
150
200
250
300
350
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Amount Raised
Bars
- in E
URm
0
50
100
150
200
250
300
350
Last 12 Months Cumulative Amount Raised
Lines - in E
URm
1039
771
1950
467
1062
537
941
707
468
693
377 384
547
64
537
94
2
7
711
17
20
9
11
11
12
16
16
4
0
500
1,000
1,500
2,000
2,500
3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Amount Raised
Bars
- in E
URm
0
1,000
2,000
3,000
4,000
5,000
Last 12 M
onths Cumulative Amount Raised
Lines - in E
URm
Equity Indices and Sub-Sector Trackers
Contact:[email protected]
June 2009Page 5 of 10
Equity Markets
Pharmaceutical Sector Absolute & Relative Performance
Bionest Therapeutic Trackers
European Pharmaceutical Sector Performance
Sources: Bionest Research, FactSet, BioCentury, Dowjones
Sources: Bionest Research, FactSet, BioCentury, Dowjones
Sources: Bionest Research, FactSet, BioCentury, Dowjones
EU Pharmaceutical Sector Performance US Pharmaceutical Sector Performance
Absolute Performance Relative Performance to Nasdaq Biotech
Animal Health Sector Performance Biotech Sector Performance
► Flattish performance this quarter
► The rebound seen in the first quarter is confirmed
► Strong performance of Animal Health and Biotech compared to the first quarter
60
70
80
90
100
110
120
130
140
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Absolute Perform
ance
Bionest Vaccines Bionest Inf. and Autoimmune
Bionest Cancer Bionest Neurology
+21%
+34%
+31%
+16%
60
70
80
90
100
110
120
130
140
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Rel. Perf. to Nasdaq Biotech
Bionest Vaccines Bionest Inf. and Autoimmune
Bionest Cancer Bionest Neurology
+28%
+19%
+27%
+12%
200
250
300
350
400
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Perform
ance
EUR Pharma Stoxx (Abs.)
EUR Pharma Stoxx (Rel. to Stoxx)
-14%
-7%
200
250
300
350
400
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Perform
ance
US Pharma S&P 500 (Abs.)
US Pharma S&P 500 (Rel. to S&P 500)
-9%
-4%
20
60
100
140
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Perform
ance
Bionest Animal Health (Rel. to Pharma S&P 500)
Bionest Animal Health (Abs.)
+20%
+24%
20
60
100
140
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Perform
ance
European Biotech (Abs.)
European Biotech (Rel. to Stoxx Pharma)
+9%
+15%
Target Location:
European Acquirors
85%
5%10%
2
169 6 3 5
0
10
20
30
40
50
60
70
80
90
100
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Deal Value
EURbn
19
30
24 25
18 19
7
6
3
8
26
34 34
31
21
27
410
0
5
10
15
20
25
30
35
40
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Number of Deals
Transactions
Contact:[email protected]
June 2009Page 6 of 10
M&A in Biotech
Global Overview: Towards Smaller Deals
Deal Split per Size
Major Operations in Q209
Sources: Bionest Research, FactSet, BioCentury, Dowjones, MergermarketNote: Numbers on the top indicate the number of transactions
Note: Numbers on the top indicate the number of transactions
Disclosed transactions only
Undisclosed Deals
Disclosed Deals
Corporate deals worldwide in the pharma/biotech industryScope of our Analysis
Deals < €100m Deals > €500mDeals €100 < 500m
Sources: Bionest Research, FactSet, BioCentury, Dowjones, Mergermarket
Targets Localization vs. Acquirers Region
US
In % of deals volume
RoW AcquirorsNorth American Acquirors
Merck/Schering
Pfizer/WyethRoche/
Genentech
15
18
12
19
10
11
0
400
800
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Deal Size
EURm
3
8
8
5
3
6
0
400
800
1,200
1,600
2,000
2,400
2,800
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Deal Size
EURm
1
4
4
1 2
5
0
10
20
30
40
50
60
70
80
90
100
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Cumulative Deal Size
EURbn
13%
49%
38%
75%
25%
GSK – Stiefel Laboratories / April 2009 Express Scripts – WellPoint NextRx / April 2009
► GSK acquired Stiefel Laboratories for a cash consideration
of $ 2.9 billion in cash and will assume $0.4 billion of net
debt upon closing. A potential further $0.3 billion cash
payment is contingent on future performance.
► Cost synergies for the new business are expected from
combining manufacturing and administrative functions.
Besides, Stiefel’s products will benefit from GSK’s global
distribution and commercial organisations in the BRIC
countries while GSK’s products will benefit from Stiefel’s
experience in dermatology.
► Express Script acquired WellPoint NextRx in a cash-and-
stock transaction valued at approximately $4.7billion.The
transaction includes a 10-year contract for Express
Scripts to provide services to WellPoint, following closing
of the transaction.
► WellPoint will retain control of medical policy, formulary
and integrated disease management, and will work
alongside Express Scripts to offer best-in-class pharmacy
management and data analytics
EU
RoW
Note: Numbers on the top indicate the number of transactions; One deal therapeutic area not disclosed in 3Q08, one in 1Q09 and one in 2Q09
Disclosed partnerships only with deal values equal to $100m or above
Partnerships at and above $100m
Contact:[email protected]
June 2009Page 7 of 10
Global Overview
Partnerships by Development Phase
Partnerships by Therapeutic Area
► Date 14/05/2009
► Acquirer Sanofi-Aventis
► Target Kyowa Hakko Kirin
► Products Anti-LIGHT MAb
► Status Preclinical
► Area Infl. & Autoimmune
► Deal Value €232m
Sanofi-aventis and Kyowa Hakko Kirin enter into a collaboration and licensing agreement on an Anti LIGHT fully human monoclonal antibody
Top Story Focus
Sources: Bionest Research, FactSet, BioCentury, Dowjones, Recombinant Capital
Sources: Bionest Research, FactSet, BioCentury, Dowjones, Recombinant Capital
Sources: Bionest Research, FactSet, BioCentury, Dowjones, Recombinant Capital
Note: Numbers on the top indicate the number of partnerships
Disclosed partnerships only with deal values equal to $100m or above
Note: Numbers on the top indicate the number of transactions; Two deal phases not disclosed in 3Q08
Disclosed partnerships only with deal values equal to $100m or above
M&A in Biotech
Biotech or pharma product transaction between global parties, for which the terms are disclosed, with a total deal value reaching $100m at least
Scope of our Analysis
► Impressive decreasing number of deals in Phase I and Phase II
► Small deals but deals… in Gastrointestinal and Gynaecology!
132
409
194
292
375
183
87
217
335
119
373
795
264
646
299
590
692
328
153
344305
76
336
174
454
605
223
172
92
318
250
530
0
100
200
300
400
500
600
700
800
Anti-Infectious Cancer Cardiovascular CNS Dermatology Gastrointestinal Gynaecology Inflammatory &Autoimmune
Metabolic Ophthalmology Respiratory &Allergy
Other
Average Deal Value in EURm
3Q08 4Q08 1Q09 2Q09
44 1
52
135
1
1
0
1 1 3 3 1 2 4 3 2 1 1 1 7 31 2 7 4 1 10 5 1 6 2 1 22 4 4142
215349
204285281
833
431272
2,184
95173
251392
217
436
119113
463
113254
430419
196173
463
151315
163
361
0
500
1,000
1,500
2,000
2,500
MarketedApprovedFiledPhase IIIPhase II/IIIPhase IIPhase I/IIPhase IPreclinicalDiscovery
Average Deal Value in EURm
3 8 3 4 1 5 6 2 4 2 1 1 1 25 5 2 2 3 2 1 8 2 116 2 1 37
3Q08 4Q08 1Q09 2Q09
314
400
280304
360423
313
208253
364
22
26
22
25
1919
2625
18
28
0
100
200
300
400
500
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Average Deal Size in EURm
0
5
10
15
20
25
30
Number of Deals
Buy Out Transactions in EuropePrivate Markets
Contact:[email protected]
June 2009Page 9 of 10
Global Overview of Q2 09 Buy Out Healthcare Transactions
Top 10 European Private Equity Buyouts: 3 in the Healthcare Field !
0
10
20
30
40
50
60
70
Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
Va
lue
(€
bn
)
►For the first time since Q2 2007, overall value of European Private EquityBuyouts has increased.
►The numbers are still far fromthose in 2007, but thisincrease from €2bn in Q1 to €3.6bn in Q2 (overall buyouts) could be the first signs of a potential private equitybuyouts upturn…
End of decline ?
Target Company Value €m Target Country Equity Providers
Wood Mackenzie 637 United Kingdom Charterhouse Capital Partners
Chesapeake Corporation 366 United Kingdom Irving Place Capital, Oaktree Capital Management
Grupo SAR 200 Spain G Square Capital, Palamon Capital Partners
Bol.com 110 Netherlands Cyrte Investments
Grupo Diagnóstico Recoletas 100 Spain Mercapital
Moret Industries 100 France Céréa Mezzanine, Unigrains
TMD Friction 100 Germany Pamplona Capital Management
Bounty Group Ltd 70 United Kingdom Barclays Private Equity
Vanguard Healthcare Solutions 34 United Kingdom MML Capital Partners
The Amor Group 31 United Kingdom Close Growth Capital, Scottish Enterprise
European Private Equity Buyouts: End of decline ?
Target Company Sub Sector Value €mTarget
CountryDeal Type Acquirer
Elysee Dental Solutions BV Medical Equipment ND Netherland IBO Synergia Capital Partners BV
Société d'Etudes de Recherche
et de Fabrication SASMedical Supplies ND France Build-up Turenne Capital via Dedienne Sante SAS
Korian SA (three housing facil.) Healthcare Provider ND France Build-upAzulis Capital / BNP Developpement / Dominique Pelle
via Domidep
Grupo SAR Healthcare Provider 200 Spain IBI G Square Capital / Palamon Capital Partners LP
Grupo Iberica de Diagnostico y
CirurgiaHealthcare Provider 100 Spain IBI Mercapital SL
No Significant Deals
Articles de Laboratoire de
Precision SASMedical Supplies ND France Build-up American Capital Ltd / Axygen Scientific
Aesculabor-Karlsruhe GmbH Healthcare Provider ND Germany Build-up 3i Group Plc via Labco
Vanguard Healthcare Solutions Medical Equipment 34 UK MBO MML Capital Partners LLP
June 2009
May 2009
April 2009
This publication has been prepared by Bionest Partners (19 rue du Général Foy – Paris, France) and is provided solely for the information of the recipients who are expected to make their own investment decisions without undue reliance on this report. The information herein is not intended as an offer to buy or sell, or a solicitation to buy or sell any financial instrument. The information herein has been obtained from, and any opinions herein are based upon, sources believed to be reliable, but Bionest Partners makes no representation as to its relevance, accuracy or completeness and it should not be relied upon as such. As a result, Bionest Partners accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents.
This report shall not be reproduced, distributed or published by any recipient for any purpose without the prior consent of Bionest Partners.
All opinions and estimates herein reflect the judgement of Bionest Partners on the date of this report and are subject to modifications without notice. Any investments referred to herein may involve significant risks and are not necessarily available in all jurisdictions, may be illiquid and may not be suitable for all investors. The value of, or income from, any securities referred to herein may fluctuate and/or be affected by changes in exchange rates. Past performance is not indicative of future results. Investors are expected to make their own investment decisions without relying on this publication. Only investors with sufficient knowledge and experience in financial and business matters to evaluate the relevant merits and risks should consider an investment in any issuer or market discussed herein.
The information contained in this publication is not available to a person who would be categorized as a private customer under the rules of the FSA. To the extent that any securities, or any broker-dealer, investment adviser or other services, are deemed to be offered herein for purposes of U.S. law, such securities or services are not being offered in the United States or to U.S. persons absent from an exemption under applicable U.S. law. This report is not intended for distribution to, or use by, U.S. persons without such an exemption.
Bionest Partners: (a) may have managed or co-managed a public offering of the subject companies securities in the past 12 months; (b) may have received compensation for investment banking services from the subject companies in the past 12 months; and (c) expect to receive or intends to seek compensation for investment banking services from the subject companies in the next 6 months.
Disclaimer
Contact:[email protected]
June 2009Page 10 of 10
Selected Bionest Financial Advisory Transactions
2008
Has Out-licensed
Research L-Asparaginase
to
Sole Advisor
2007
Has Sold Ginkor Fort
to
Sole Advisor
2006
Co-Advisor
Raised €15m
Listed on Alternext
2008
Oncology
-
Assessment of
Product Franchise
Sole Advisor
2008
Has Divested
MAb Research Business
to
Sole Advisor
2008
Oncology
(Financing Round)
Corporate
Valuation
2008
Mature Products
(Financing Round)
Corporate
Valuation
2008
Has been acquired
by
Due Diligence
2007
Commercial Due Diligence
for
Due Diligence
2007
Has been acquired
by
Due Diligence
2006
Due Diligence
Has been acquired
by
Due Diligence
2009
Entered
financial agreements
with
Notes
Notes