Summary

Buyer: Genentech, Inc. (?248964) Last Price:   Market Cap.:  
Target: OSI Pharmaceuticals Inc (CH716923BCN8001:MSTAR:US) Last Price:   Market Cap.:  

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

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Business Relationship Summary:

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Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees n/a n/a
Revenue Per Employee n/a n/a
Total Revenue 3,707.0 106.6
Total Expenses 2,343.0 87.6
Other Revenue n/a 14.2
Cost of Revenue 503.0 2.6
SG&A Expense 718.0 39.7
Research & Development 757.0 42.0
Other Operating Expense 365.0 n/a
Operating Income 1,364.0 18.9
Unusual Income n/a 3.1
LT Debt to Capital 12.94 15.58
Fwd P/E n/a n/a
Fwd P/Rev n/a n/a
Book Value 15,671.0 770.4
Curr Portion of LTD/Cap Lease n/a 169.4

Individual Company Summary

Focused

Buyer
Target

Business Description

Buyer

Genentech, Inc. (Genentech) is a biotechnology company that discovers, develops, manufactures and commercializes pharmaceutical products to treat patients with unmet medical needs. It commercializes multiple biotechnology products and also receives royalties from companies that are licensed to market products based on the Company?s technology. Genentech commercializes various products in the United States, including Avastin, Rituxan, Herceptin, Lucentis, Xolair, Tarceva, Nutropin, Activase, TNKase, Cathflo Activase, Pulmozyme and Raptiva. The Company?s licensed products include Trastuzumab, Rituximab, Bevacizumab, Dornase alfa, recombinant, Alteplase and Tenecteplase, Somatropin, Daclizumab, Ranibizumab, Etanercept, Adalimumab and Infliximab. In March 2009, Roche Holding Ltd. completed the acquisition of Genentech.

Target

OSI Pharmaceuticals, Inc. (OSI) is a biotechnology company focused on the discovery, development and commercialization of molecular targeted therapies addressing unmet medical needs in oncology, diabetes and obesity. The Company's focus is on oncology and its flagship product is Tarceva (erlotinib), a small molecule inhibitor of the epidermal growth factor receptor (EGFR). OSI also has research and development programs in diabetes and obesity, which are conducted through Prosidion Limited, the Company's United Kingdom subsidiary. Roche Holding Ltd. and OSI announced that Tarceva (erlotinib) has been approved in Japan for the treatment of patients with nonresectable, recurrent and advanced non-small cell lung cancer (NSCLC), which is aggravated following chemotherapy.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 87.02 97.8
Operating Margin % 39.72 32.18
Quick Ratio 2.29 2.51
Current Ratio 3.25 2.77
Coverage Ratio n/a n/a
Total Assets 21,787.0 1,259.7
Return on Equity % 87.47 41.92
Return on Assets % 62.92 25.64
Cash+ ST Inv. Per Share 5.82 8.91
Total Debt 2,829.0 311.7
Total Debt to Equity % 18.05 40.45
Total Debt to Tangible Equity % 21.64 43.01
Debt to Asset % 12.98 24.74

Product Summary

Sector Buyer Target

Product Details

Sector Buyer Target

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value

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Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value

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Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value

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Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value

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Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 13,418.0 452.6 13,870.6
Other Revenue n/a 87.6 87.6
Total Revenue 13,418.0 540.1 13,958.1
Cost of Revenue 1,742.0 11.9 1,753.9
SG&A Expense 2,405.0 143.7 2,548.7
Depreciation & Amortization n/a 1.1 1.1
Research & Development 2,800.0 195.5 2,995.5
Interest Expense n/a n/a n/a
Other Operating Expense 1,401.0 n/a 1,401.0
Unusual Expense (Income) -259.0 14.1 -244.9
Total Expenses 8,089.0 366.3 8,455.3
Operating Income 5,329.0 173.8 5,502.8
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -83.0 -22.7 -105.7
Other, Net 185.0 -9.9 175.1
Income Before Taxes 5,431.0 141.2 5,572.2
Income Taxes 2,004.0 60.5 2,064.5
Income After Taxes 3,427.0 80.7 3,507.7
Net Income - Excl. Xord. Items 3,427.0 80.7 3,507.7
Discontinued Operations n/a 0.2 0.2
Net Income - Incl. Xord. Items 3,427.0 80.9 3,507.9
Income Avail. to Common 3,427.0 80.9 3,507.9
Share Items
Basic Avg. Shares Outstanding 1,052.0 58.7 1,110.7
Basic EPS - Excl. Xord. Items 3.26 1.39 3.16
Basic EPS - Incl. Xord. Items 3.26 1.39 3.16
Full Dilution Adjustment n/a 1.8 1.8
Fully Diluted Shares Outstanding 1,065.0 59.5 1,124.5
F.D. EPS - Excl. Xord. Items 3.21 1.36 3.12
F.D. EPS - Incl. Xord. Items 3.21 1.37 3.12
Balance Sheet
Assets
Cash and Equivalents 4,533.0 199.1 4,732.1
ST Investments 1,665.0 331.4 1,996.4
Accounts Receivable 902.0 115.4 1,017.4
Inventory 1,299.0 18.1 1,317.1
Prepayments and Advances 135.0 17.3 152.3
Other Current Assets 500.0 30.3 530.3
Current Assets 10,073.0 711.6 10,784.6
Accum D&A n/a n/a n/a
PPE, Net 5,404.0 135.4 5,539.4
Goodwill & Intangibles 2,598.0 45.7 2,643.7
Long Term Investments 3,347.0 n/a 3,347.0
Other Assets n/a n/a n/a
Other LT Assets 365.0 367.0 732.0
Total Assets 21,787.0 1,259.7 23,046.7
Liabilities
Accounts Payable 228.0 n/a 228.0
Payable/Accrued n/a 76.0 76.0
Accrued Expenses 2,099.0 n/a 2,099.0
ST Debt 500.0 n/a 500.0
Curr Port of LTD & Cap Lease Oblg n/a 169.4 169.4
Other (Current) Liabilities 268.0 11.8 279.8
Current Liab. 3,095.0 257.2 3,352.2
LT Debt 2,329.0 142.2 2,471.2
Total LT Debt 2,329.0 142.2 2,471.2
Deferred Taxes n/a 49.8 49.8
Other LT Liab. 692.0 40.1 732.1
Total Liabilities 6,116.0 489.3 6,605.3
Shareholders Equity
Common Stock 21.0 0.6 21.6
Additional Paid in Capital 12,044.0 1,846.8 13,890.8
Retained Earnings 3,482.0 -976.3 2,505.7
Treasure Stock n/a -102.2 -102.2
Other Equity 124.0 1.5 125.5
Total Equity 15,671.0 770.4 16,441.4
Total Liab. & Equity 21,787.0 1,259.7 23,046.7
Shares Outstanding 1,053.0 59.8 1,112.8
Cash Flow
Operating Cash Flow
CF Net Income 3,427.0 64.4 3,491.4
CF Depreciation 592.0 11.3 603.3
CF Amortization n/a 0.7 0.7
CF Deferred Taxes 90.0 45.4 135.4
Other Non-Cash Items 50.0 55.0 105.0
Change in Working Capital -204.0 11.8 -192.2
Total Cash From Operating Activities 3,955.0 188.6 4,143.6
Investing Cash Flow (not calculated)
Capital Expenditures -751.0 -109.5 -860.5
Other Investing Cash Flows -916.0 -60.3 -976.3
Total Cash From Investing Activities -1,667.0 -169.8 -1,836.8
Financing Cash Flow (not calculated)
Dividends Paid n/a n/a n/a
Purchase Or Sale of Stock -100.0 56.4 -43.6
Purchase and Retirement of Debt -99.0 -75.0 -174.0
Other Financing Cash Flow -70.0 -4.0 -74.0
Total Cash From Financing Activities -269.0 -22.7 -291.7
Exchange Rate Effects n/a -2.5 -2.5
Net Change in Cash 2,019.0 -6.3 2,012.7
Cash Taxes Paid 1,779.0 3.9 1,782.9
Cash Interest Paid 74.0 10.3 84.3