Summary

Other Scenarios:

Buyer: ZymoGenetics, Inc. (ZGEN) Last Price: 20.75 Market Cap.: 1.39B
Target: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 39.05 Market Cap.: 1.36B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 864
Biopharmaceuticals 321

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 10)
  • rFactor XIII
  • FGF-18
  • IL-31
  • Interleukin 20 (IL-20)
Target (Total: 8)
  • Erdosteine
  • Delsym (Dextromethorphan Polistirex)
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
Buyer

n/a
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 3)
  • Alexandria Real Estate Equities, Inc. (ARE)
  • Patheon, Inc. (PTI:CA)
  • XOMA Limited (XOMA)
Target (Total: 1)
  • Cardinal Health, Inc. (CAH)
Buyer (Total: 6)
  • Johnson & Johnson (JNJ)
  • Novo Nordisk A/S (ADR) (NVO)
  • Eisai Co., Ltd (ADR) (ESALY)
  • Serono S.A. (ADR) (SRA)
Target (Total: 11)
  • Wal-Mart Stores, Inc. (WMT)
  • Walgreen Company (WAG)
  • CVS Corporation (CVS)
  • McKesson Corporation (MCK)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 468 176
Revenue Per Employee 68,843.9 1,693,573.0
Total Revenue 8.1 76.0
Total Expenses 39.7 48.4
Other Revenue 0.0 0.0
Cost of Revenue 31.4 16.2
SG&A Expense 8.3 28.4
Research & Development 0.0 3.8
Other Operating Expense 0.0 -0.1
Operating Income -31.6 27.6
Unusual Income 0.0 0.0
LT Debt to Capital 0 0
Fwd P/E -10.19 21.71
Fwd P/Rev 42.27 3.72
Book Value 288.4 212.2
Curr Portion of LTD/Cap Lease 0.0 0.0

Key Ratios

  Buyer Target
Gross Margin % -193.97 80.01
Operating Margin % -267.48 31.04
Quick Ratio 13.58 7.76
Current Ratio 13.73 8.45
Coverage Ratio -0.06 0
Total Assets 397.3 239.4
Return on Equity % -33.66 20.25
Return on Assets % -24.43 17.95
Cash+ ST Inv. Per Share 4.64 4.17
Total Debt 0.0 0.0
Total Debt to Equity % 0 0
Total Debt to Tangible Equity % 0 0
Debt to Asset % 0.00 0.00

Individual Company Summary

Focused

Buyer

Sector Pure-Play (): *Healthcare > Biopharmaceuticals

Target

Focused (): *Healthcare > Biopharmaceuticals > Respiratory System > Upper Respiratory Tract Disorders > Coughs/Colds

Business Description

Buyer

ZymoGenetics, Inc. is engaged in the discovery, development, manufacture and commercialization of therapeutic proteins for the treatment of human diseases. The Company focuses in the areas of hemostasis, inflammatory and autoimmune diseases, cancer and viral infections. Its pipeline of products includes a replacement for plasma-derived protein products and several novel proteins, which it is developing on its own or in collaboration with partners. The Company's most advanced internal product candidate is recombinant human thrombin (rhThrombin), a topical hemostatic agent intended for the control of moderate bleeding during surgical procedures. It is a recombinant version of a blood-clotting protein that is marketed in the United States as a stand-alone product in a form derived from bovine (cow) plasma.

Target

Adams Respiratory Therapeutics, Inc. is a specialty pharmaceutical company focused on the late-stage development, commercialization and marketing of over the counter (OTC) and prescription pharmaceuticals for the treatment of respiratory disorders. During the fiscal year ended June 30, 2005, the Company marketed two OTC products, Mucinex SE and Mucinex DM, under its Mucinex brand. Mucinex SE is a long-acting, single-ingredient guaifenesin product. Guaifenesin is an expectorant that thins bronchial secretions and makes coughs more productive. Mucinex DM combines long-acting guaifenesin with the cough suppressant, dextromethorphan. In February 2005, Adams Respiratory Therapeutics, Inc. acquired the Humibid trademark and transferred its AlleRx product line in exchange for the Humibid name.

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Dermatology
The Dermatology Subsector includes therapeutics that treat disorders affecting the skin.
  
Digestive System
The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive system.
  
Immunology
The Immunology Subsector includes therapeutics that treat disorders affecting the immune system.
  
Infectious Diseases
The Infectious Diseases Subsector includes therapeutics that treat diseases caused by the invasion and reproduction of microorganisms in the body.
  
Musculoskeletal System
The Musculoskeletal System Subsector includes therapeutics that treat disorders of the bones, joints, ligaments, tendons, and soft tissue involved with them.
  
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
  
Respiratory System
The Respiratory System Subsector includes therapeutics that treat disorders affecting both the upper and lower respiratory tract, including the nose, throat, larynx, trachea, bronchi, and lungs.
  
Surgery
The Surgery Subsector includes therapeutics that treat complications associated with surgical procedures.
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of heart and circulatory system disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • rFactor XIII
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of heart and circulatory system disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • FGF-18
  
Dermatology  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of skin disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • IL-31
  • Interleukin 20 (IL-20)
  • IL-22/IL-22R
  
Digestive System  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of digestive disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Interleukin-29 (IL-29)
  
Immunology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of immune disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • Atacicept/TACI-Ig
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of immune disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Interleukin 20 (IL-20)
  • IL-31
  • IL-22/IL-22R
  • Atacicept/TACI-Ig
  
Infectious Diseases  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of infectious diseases in very early stages of research where no human subject is involved.

Buyer Products:

  • Interleukin-29 (IL-29)
  
Musculoskeletal System  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of skeletal system disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • Platelet-Derived Growth Factor
  • Atacicept/TACI-Ig
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of skeletal system disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • FGF-18
  
Oncology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment and management of cancer in early stages of clinical research where human subject is involved.

Buyer Products:

  • Interleukin 21 (IL-21)
  • Atacicept/TACI-Ig
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment and management of cancer and are currently in an early research or preclinical stage of development.

Buyer Products:

  • rFactor XIII
  
Respiratory System  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of respiratory disorders in early stages of clinical research where human subject is involved.

Target Products:

  • Erdosteine
  
Upper Respiratory Tract Disorders  
Coughs/Colds  
Antitussives
Therapeutics that relieve or prevent coughs.

Target Products:

  • Delsym (Dextromethorphan Polistirex)
  
Antitussives/Expectorants
Therapeutics that treat coughs and colds by suppressing coughs and helping ejection of the mucous.

Target Products:

  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  
Decongestants/Expectorants
Therapeutics that treat coughs and colds by reducing mucous build up and help in ejection of mucous.

Target Products:

  • Maximum Strength D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  • Mucinex D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  
Expectorants
Therapeutics that treat coughs and colds by helping in the ejection of mucous.

Target Products:

  • Mucinex SE (Guaifenesin Extended Release)
  • Humibid (Guaifenesin Extended Release)
  
Surgery  
General  
Complications  
Hemorrhage  
Clotting Agents
Therapeutics used prior to surgery to help prevent excessive bleeding from occurring during the surgery.

Buyer Products:

  • rhThrombin
  
Hemorrhage  
Coagulating Agents (Coagulants)
Therapeutics that treat bleeding during a surgical procedure by promoting blood clotting.

Buyer Products:

  • rhThrombin
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Schering-Plough Corporation n/a 29,937.537 40.73 26.99 3.00 2.89 4.03
Buyer
  Genentech, Inc. n/a 84,236.485 51.03 42.88 10.76 9.43 13.08
Amgen, Inc. n/a 79,036.948 28.17 18.29 5.97 5.54 47.50
Eli Lilly & Co. n/a 62,239.769 19.75 17.59 4.13 4.03 5.22
Schering-Plough Corporation n/a 29,937.537 40.73 26.99 3.00 2.89 4.03
Human Genome Sciences n/a 1,354.614 n/a -5.99 55.93 37.50 4.48
Medarex, Inc. n/a 1,234.030 n/a -6.87 22.03 25.32 3.35
Maxygen, Inc. n/a 281.704 n/a -9.43 13.24 10.94 1.60
Omrix Biopharmaceuticals, Inc. n/a 243.384 29.27 13.56 5.60 4.13 6.61
CuraGen Corporation n/a 156.638 n/a -2.46 4.27 4.07 8.10
Compugen Ltd. (USA) n/a 73.236 n/a n/a 32.01 n/a 2.29
ChemGenex Pharmaceuticals Limited (ADR) n/a 59.523 n/a n/a 19.51 n/a 19.91
Target
  The Procter & Gamble Company n/a 199,743.078 23.19 20.35 2.93 2.67 -7.65
Pfizer Inc. n/a 198,546.211 18.31 13.62 4.20 4.17 9.32
Johnson & Johnson n/a 189,161.161 17.30 17.62 3.69 3.59 6.89
Novartis AG (ADR) n/a 132,881.474 23.43 18.59 3.80 3.66 3.58
Wyeth n/a 64,134.058 16.94 15.29 3.30 3.20 6.79
Bayer AG (ADR) n/a 36,546.310 18.76 16.36 1.03 1.13 6.63
Schering-Plough Corporation n/a 29,937.537 40.73 26.99 3.00 2.89 4.03

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Alexandria Real Estate Equities, Inc. n/a 2,561.109 51.22 18.66 9.52 n/a 2.25
Patheon, Inc. n/a 530.149 159.94 n/a 0.75 n/a 2.03
XOMA Limited n/a 167.546 n/a -4.02 7.09 4.80 -6.09
Target
  Cardinal Health, Inc. n/a 28,118.069 28.12 18.35 0.35 0.32 8.04

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Johnson & Johnson n/a 189,161.161 17.30 17.62 3.69 3.59 6.89
Novo Nordisk A/S (ADR) n/a 26,938.235 26.48 21.36 4.24 n/a 5.51
Eisai Co., Ltd (ADR) n/a 13,550.471 38.25 21.79 3.82 n/a 3.31
Serono S.A. (ADR) n/a 10,380.356 15.83 14.87 3.88 3.74 4.64
BioMimetic Pharmaceuticals n/a n/a n/a n/a n/a n/a n/a
Government - Thailand n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. 10.00% 182,881.976 17.15 15.02 0.55 0.52 4.24
Walgreen Company 10.00% 48,202.846 28.91 28.16 1.05 1.03 4.92
CVS Corporation 10.00% 27,074.036 20.63 21.79 0.69 0.64 5.96
McKesson Corporation 10.00% 15,379.688 20.13 19.37 0.17 0.16 3.86
Target Corporation n/a 40,230.822 15.86 15.11 0.73 0.68 2.80
Cardinal Health, Inc. n/a 28,118.069 28.12 18.35 0.35 0.32 8.04
Sears Holdings Corporation n/a 22,345.146 18.94 16.65 0.42 0.43 3.56
The Kroger Co. n/a 16,820.131 17.36 16.37 0.27 0.26 6.97
Safeway Inc. n/a 13,773.708 20.11 17.91 0.35 0.34 4.52
AmerisourceBergen Corp. n/a 8,812.396 24.13 20.88 0.15 0.15 5.32
Rite Aid Corporation n/a 2,199.008 1.81 n/a 0.13 0.13 2.86

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Johnson & Johnson n/a 189,161.161 17.30 17.62 3.69 3.59 6.89
Amgen, Inc. n/a 79,036.948 28.17 18.29 5.97 5.54 47.50
Abbott Laboratories n/a 74,541.703 23.78 19.45 3.37 3.33 44.76
Novo Nordisk A/S (ADR) n/a 26,938.235 26.48 21.36 4.24 n/a 5.51
Eisai Co., Ltd (ADR) n/a 13,550.471 38.25 21.79 3.82 n/a 3.31
Serono S.A. (ADR) n/a 10,380.356 15.83 14.87 3.88 3.74 4.64
Regeneron Pharmaceuticals, Inc. n/a 842.609 n/a -7.17 11.85 12.74 10.06
Patheon, Inc. n/a 530.149 159.94 n/a 0.75 n/a 2.03
XOMA Limited n/a 167.546 n/a -4.02 7.09 4.80 -6.09
BioMimetic Therapeutics, Inc. n/a 108.972 n/a -4.49 20.98 0.02 n/a
Avecia Ltd. n/a n/a n/a n/a n/a n/a n/a
University Of Washington n/a n/a n/a n/a n/a n/a n/a
BioMimetic Pharmaceuticals n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. n/a 182,881.976 17.15 15.02 0.55 0.52 4.24
Walgreen Company n/a 48,202.846 28.91 28.16 1.05 1.03 4.92
Target Corporation n/a 40,230.822 15.86 15.11 0.73 0.68 2.80
Cardinal Health, Inc. n/a 28,118.069 28.12 18.35 0.35 0.32 8.04
CVS Corporation n/a 27,074.036 20.63 21.79 0.69 0.64 5.96
Sears Holdings Corporation n/a 22,345.146 18.94 16.65 0.42 0.43 3.56
The Kroger Co. n/a 16,820.131 17.36 16.37 0.27 0.26 6.97
McKesson Corporation n/a 15,379.688 20.13 19.37 0.17 0.16 3.86
Safeway Inc. n/a 13,773.708 20.11 17.91 0.35 0.34 4.52
AmerisourceBergen Corp. n/a 8,812.396 24.13 20.88 0.15 0.15 5.32
Rite Aid Corporation n/a 2,199.008 1.81 n/a 0.13 0.13 2.86
UCB S.A. n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 38.4 225.4 263.8
Other Revenue 0.0 0.0 0.0
Total Revenue 38.4 225.4 263.8
Cost of Revenue 112.9 45.1 157.9
SG&A Expense 28.2 99.4 127.6
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 0.0 14.2 14.2
Interest Expense 0.0 -3.1 -3.1
Other Operating Expense 0.0 -0.1 -0.1
Total Expenses 141.1 155.4 296.6
Operating Income -102.7 70.0 -32.7
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 5.7 0.0 5.7
Other, Net -0.0 0.0 -0.0
Income Before Taxes -97.1 70.0 -27.1
Income Taxes 0.0 27.0 27.0
Income After Taxes -97.1 43.0 -54.1
Net Income - Excl. Xord. Items -97.1 43.0 -54.1
Net Income - Incl. Xord. Items -97.1 43.0 -54.1
Preferred Dividends 0.0 -82.0 -82.0
Income Avail. to Common -97.1 -39.0 -136.1
Share Items
Basic Avg. Shares Outstanding 66.8 34.4 101.2
Basic EPS - Excl. Xord. Items n/a n/a -0.53
Basic EPS - Incl. Xord. Items n/a n/a -0.53
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 66.8 36.8 103.6
F.D. EPS - Excl. Xord. Items n/a n/a -0.52
F.D. EPS - Incl. Xord. Items n/a n/a -0.52
Balance Sheet
Assets
Cash and Equivalents 36.3 133.6 169.9
ST Investments 273.9 19.7 293.6
Accounts Receivable 5.2 41.5 46.7
Inventory 0.0 2.1 2.1
Prepayments and Advances 3.6 9.9 13.4
Other Current Assets 0.0 5.4 5.4
Current Assets 319.1 212.1 531.1
PPE 0.0 4.8 4.8
Accum D&A 0.0 -0.6 -0.6
PPE, Net 71.8 4.2 76.1
Goodwill & Intangibles 0.0 5.3 5.3
Other Assets 0.0 0.0 0.0
Other LT Assets 6.4 17.7 24.1
Total Assets 397.3 239.4 636.7
Liabilities
Accounts Payable 3.5 11.3 14.8
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 11.2 11.8 22.9
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 8.5 2.0 10.6
Current Liab. 23.2 25.1 48.3
LT Debt 0.0 0.0 0.0
Total LT Debt 0.0 0.0 0.0
Other LT Liab. 85.7 2.0 87.8
Total Liabilities 109.0 27.1 136.1
Shareholders Equity
Common Stock 719.7 0.3 720.0
Additional Paid in Capital 0.0 461.1 461.1
Retained Earnings -429.4 -249.2 -678.6
Other Equity -1.9 0.0 -1.9
Total Equity 288.4 212.2 500.6
Total Liab. & Equity 397.3 239.4 636.7
Shares Outstanding 67.0 34.7 101.8
Cash Flow
Operating Cash Flow
CF Net Income -97.1 43.0 -54.1
CF Depreciation 6.5 1.3 7.8
CF Deferred Taxes 0.0 3.0 3.0
Other Non-Cash Items 10.4 6.1 16.5
Change in Working Capital -13.1 -12.5 -25.6
Total Cash From Operating Activities -93.3 40.8 -52.5
Investing Cash Flow (not calculated)
Capital Expenditures -6.4 -3.7 -10.1
Other Investing Cash Flows -53.9 -35.6 -89.4
Total Cash From Investing Activities -60.2 -39.3 -99.5
Financing Cash Flow (not calculated)
Dividends Paid 0.0 -45.0 -45.0
Purchase Or Sale of Stock 136.1 115.2 251.3
Purchase and Retirement of Debt 0.0 0.0 0.0
Other Financing Cash Flow 0.0 15.6 15.6
Total Cash From Financing Activities 136.1 85.8 221.9
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -17.4 87.3 69.9
Cash Taxes Paid 0.0 7.7 7.7
Cash Interest Paid 3.8 0.0 3.8