Introduction
We are excited to release the first issue of our monthly newsletter Sector Spotlight
This is a comprehensive newsletter coupled with decks for the current or aspiring investment banker/PE investor, diving deep into the qualitative and quantitative nature of transactions, businesses, and trends across sectors, from the POV of an investment banker/PE investor. The groups are led by incoming investment banking summer analysts & analysts across a range of bulge bracket, elite boutique, and middle market banks.
Unlike other finance newsletters, this will not just simply mention or briefly summarize deals and news but will link to decks that include in depth analysis on a given topic. As this is the first issuance, we’ll be covering three sectors: 1.) Media & Entertainment, 2.) , and 3.) Healthcare. We hope you enjoy this month’s edition and look forward to bringing you monthly updates moving forward. Enjoy!
Best,
Jagger Lambert lambertjagger@gmail.com
James Concepcion jamesconcepcion217@gmail.com
Healthcare
September 2023 Deals:
- Private equity firm Thoma Bravo acquired health records software company NextGen for $1.8bn in a take private transaction. Morgan Stanley advised NextGen and William Blair advised Thoma Bravo
- Boston Scientific acquires chronic back pain therapy maker Relievant for $850mm, all cash
- Private Equity firm Cinvin and Bain announce plans to sell or IPO drugmaker Stada which will likely be valued at >$15bn
- Health-plan administrator HealthComp and digital wellness platform operator Virgin Pulse announced plan for $3bn valuation merger. J.P. Morgan is advising HealthComp and Evercore is advising Virgin Pulse
- J&J Consumer IPO (see deck above for breakdown and analysis). Johnson and Johnson completed the sale of their majority stake in their former consumer health branch Kenvue. This yielded a total of $13.2bn for J&J to add to their balance sheet for a potential blockbuster move to bolster their medtech or pharma portfolios. The main bookrunners of the initial IPO were Goldman Sachs, J.P. Morgan, and Bank of America
September 2023 Trends
- Illumina x Grail: Illumina has faced an incredible amount of backlash from investors such an Carl Icahn for closing the acquisition of Grail for $7.1bn before having regulatory approval. Two years since announcing the completion of the deal in August 2021, Illumina is still being probed by both the SEC and FTC regarding their acquisition, leaving many outlooks on the company largely unknown. Illuminas portfolio includes high-throughput sequencing platforms, genetic testing kits, and data analysis software, making them a crucial player in the genomic industry
- Royalty Financing: September has seen multiple transactions in the space, deal values in excess of $50mm indicating possible resurgence of this alternative financing instrument
- Obesity Drugs: The anti-obesity drugs market is set to reach $77.2bn by 20230. The U.S. has a major percentage of the obese population in the world, despite being only the 3rd largest country in the world. The U.S. has an obesity rate of 41.5%. The Market is at $2.4bn in size as of 2022, with an expected 31.7% CAGR from ‘24-30. Recent skyrocketing in obesity Drug Demand
