Resources

Sector Reports 2018-05-11T21:16:02+00:00

To make it easier for you to stay on top of key healthcare sectors, the Bourne Partners team generates an ongoing series of comprehensive market analyses, covering macro industry trends, financial performance, deal activity, and other relevant topics.

Jan
4

The 2018 Q4 Pharma Services Sector Snapshot reports the latest industry trends for a wide range of Pharma Services. The report includes comparable trading multiples and recent transactions in the CDMO, CRO, Distribution, and Clinical Labs spaces. The report provides insight into valuation trends and industry performance relative to the S&P 500.

Compare to the Q1, Q2 and Q3 2018 Pharma Services Sector Snapshots to see changes in industry valuations and activity.

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Jan
3

CDMO multiples continue to hit record highs as companies pursue consolidation in an effort to become full-service providers. Similarly, CRO multiples remain at historically elevated levels with sponsors continuing to look toward outsourcing as pharma companies find it increasingly difficult to navigate the regulatory landscape.

For additional research in the CRO and CDMO spaces, please review our full sector snapshots.

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Nov
28

There are two types of compounding pharmacies, 503A and 503B. A 503A is a compounding pharmacy that makes or alters drugs that are prescribed by doctors for specific patients with needs that can’t be met by commercially available drugs. 503Bs are “outsourcing facilities” that manufacture large batches with or without specific prescription demand to be sold to healthcare facilities for medical office use in hopes of bridging the gap between traditional pharmacy compounding and industrial manufacturing. In 2017, the Compounding Pharmacies Market as a whole was valued at ~$8.5bn and is expected to grow to ~$12.5bn by 2024, an implied CAGR of ~5.0%. The 503B market currently sits at < $1.5bn.

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Nov
9

The specialty pharmaceutical industry has seen a lot of major developments so far in 2018. After years of pain on both the branded side (down 53% from July 2015 highs) and in the generics space (down 46% from peak valuations in April 2015), there are finally signs of stability –and growth –for both.

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Oct
11

The 2018 Q3 Pharma Services Sector Snapshot reports the latest industry trends for a wide range of Pharma Services. The report includes comparable trading multiples and recent transactions in the CMO, CRO, Distribution, and Clinical Labs spaces. The report provides insight into valuation trends and industry performance relative to the S&P 500.

Compare to the Q1 and Q2 2018 Pharma Services Sector Snapshots to see changes in industry valuations and activity.

Click here to view this report in its entirety.
Jul
30

The 2018 Q2 Pharma Services Sector Snapshot reports the latest industry trends for a wide range of Pharma Services. The report includes comparable trading multiples and recent transactions in the CMO, CRO, Distribution, and Clinical Labs spaces. The report provides insight into valuation trends and industry performance relative to the S&P 500.

Compare to the Q1 2018 Pharma Services Sector Snapshot to see changes in industry valuations and activity.

Click here to view this report in its entirety.
May
18

Despite the recent decline in M&A transactions in Q1 2018, activity is expected to ramp up in the second half of 2018. After two years of intense consolidation in the CDMO industry, companies are finding that in order to be successful, they must find new ways to add value. In an attempt to stand out against competition, CDMOs are evolving their businesses to expand beyond core capabilities while moving into adjacent categories.

This report examines the dynamic CDMO market landscape and recent M&A activity in the sector.

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May
8

As more pricing pressure builds, PBMS have maneuvered toward more transparent pricing models to appease regulators and customers despite IQVIA data proving that net brand price growth didn’t match the CPI for the first time in years. Of all PBM services, Medicare Part D and Medicaid have realized significant growth. Sharp increases in specialty drug prices should pay dividends to the greater specialty pharmacy market. Specialty drug spend has materially grown in retail and mail-order channels.

The report also features relevant precedent transactions that have occurred in the recent past.

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Apr
25

The 2018 Q1 Pharma Services Sector Snapshot reports the latest industry trends for a wide range of Pharma Services. The report includes comparable trading multiples and recent transactions in the CMO, CRO, Distribution, and Clinical Labs spaces. The report provides insight into valuation trends and industry performance relative to the S&P 500.

Click here to view this report in its entirety.
Apr
20

Both the livestock/farm animal and pet/companion animal segments of the industry have experienced tremendous growth in recent years. This market snapshot includes highlights of key trends and developments shaping the industry as well as an overview of capital markets activity.

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Apr
18

Sports nutrition has expanded well beyond the niche bodybuilder demographic to include a broad range of workout and wellness supplements for all ages – and both genders. With a growing population looking to stay fit and balance active lifestyles with healthy diets, this report examines the evolving sports nutrition market landscape and recent M&A transactions.

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Jun
24

The June 2017 Pharma Services Sector Snapshot reports the latest industry trends for a wide range of Pharma Services. The report includes recent transactions in the CMO, CRO, and Distribution spaces. The report provides insight into valuation trends and industry performance relative to the S&P 500.  

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Jun
22

The pharmacy benefit manager sector remains highly fragmented with a few dominant players competing for the largest payers and the remainder of firms in the space battling for smaller health plans. Due to escalating healthcare costs, manufacturers and some regulators continually point a finger in PBMs direction despite evidence to the contrary.

Recent valuations for PBMs and related subsectors have diminished slightly in the last twelve months back to historic norms. Despite this decrease, these companies haven’t experienced the same levels of volatility as most pharmaceutical companies.

This industry snapshot includes both precedent transaction comps and public trading comps for PBMs and companies in tangential sub-sectors, as well as valuation and market trends in the overall PBM space.

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May
2

With the global market for consumer health products in excess of $200bn, the sector is expected to continue to grow at a rapid pace driven by increased awareness around personal health, growing preference for over the counter medical remedies over prescription drugs, and the potential for decreased regulation around consumer health products.

Consumer health companies are seeing high valuations in both the public markets and M&A markets. This is largely driven by 2 factors: scarcity of quality brands with a loyal customer base and increased interest from pharmaceutical companies to diversify product portfolios into the consumer health space. Given factors on both the supply of and demand for consumer health products, we expect valuations to remain healthy.

The sector snapshot includes additional information on both the public markets and recent transactions in the consumer health space.

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Dec
2

The specialty pharmaceutical sector continues to offer strong future growth as specialty pharmaceuticals become an ever increasing piece of the global healthcare puzzle. Worldwide Spec Pharma sales reached $655 billion in 2015. Prescription drug sales are expected to reach almost one trillion dollars by 2020 (CAGR: 4.8% between 2014 and 2020).

Despite a decrease in equity performance over the last twelve months, the Spec Pharma market has experienced high growth in the last five years. After a spike in M&A activity and record-high multiples in 2014 and 2015, the market has returned to normalized levels. The recent slowdown can also be attributed to the negative publicity surrounding pricing practices, which has become a political issue in the election year.

The full report includes a detailed market overview, current market trends, headwinds and tailwinds facing industry participants, industry trading and transaction comps, recent deal profiles, and a collection of future growth drivers within the space.

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Feb
3

The consumer health market is comprised of OTC products (48%), nutraceuticals (41%), weight management products and other (7%), and sports nutrition products (4%). Both the OTC market and nutraceuticals market are broken out individually throughout this report

Increases in global healthcare costs are leading more individuals to focus on preventative care, self diagnosis, and self medication. US households spend an average of $340 per year on Consumer Health products, and research shows that 81% of adults use Consumer Health products as a first response to minor ailments. Physicians say that 10% of visits to their offices – millions of unnecessary appointments – each year could be avoided by treating common ailments with OTC medicines.

The nutraceutical market is being utilized to augment an increasingly robust OTC market, and growing competition among market participants has led to industry consolidation and a frothy M&A environment. High growth rates and attractive margins have fueled interest from “Big Pharma/Food” companies, eager to enter the market through strategic acquisition. Recent years have seen acquisitions, joint ventures and partnerships between and among industry players accelerate, particularly in the Nutrition segment.

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