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Deals, Investments                                                                                                                                    

There were 585 deals representing a total reported transaction value of $110.7 billion during the third quarter of 2020, within the market for healthcare and healthcare service businesses that support the life sciences industry.  This compares to 715 deals with a reported value of $85.2 billion during Q3 of 2019, an 18% decline in quarter-over-quarter number of deals, but a 30% increase in deal size.  This trend — fewer but larger deals — already ongoing seems to have been accelerated by the pandemic in the United States.

The largest publicly reported deal during the quarter was Gilead’s $21 billion purchase of biotech Immunomedics, including its highly valued breast-cancer drug. Also noteworthy was Kohlberg’s investment in PCI Pharma Services, Odyssey’s purchase of ProPharma from Linden Capital and the $18.5 billion strategic investment by Teladoc of Livongo. Other deals included Doximity, Fishawack, Healthline and W20; deal verticals included continuing medical education, data analytics and software services.

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Kohlberg Becoming Owner of PCI Pharma Services in $3B+ deal

• The Partners Group, previously PCI’s PE majority owner, will retain a minority stake. In 2016 The Partners group acquired a majority interest in PCI Pharma from Frazier Healthcare, based on a $1.1B valuation, according to The Wall Street Journal.
• PCI Pharma Services provides a broad range of integrated pharmaceutical supply chain solutions from the earliest stages of drug development through to commercial launch.
• The company supports services that includes clinical trials and commercial packaging — with 25 facilities across six countries has more than roughly 3,000 employees worldwide.
• The firms did not disclose terms.

PE Hub, The Wall Street Journal

Odyssey acquires ProPharma Group

• The company’s primary service offerings include regulatory affairs, life science consulting, pharmacovigilance and medical information services.
• Financial terms were not disclosed.

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