Summary

Other Scenarios:

Buyer: Pharmion Corporation (PHRM) Last Price: 66.23 Market Cap.: 2.47B
Target: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 59.99 Market Cap.: 2.16B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 927
Biopharmaceuticals 379

- 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: 5)
  • Innohep (Tinzaparin Sodium)
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Oral Azacitidine
  • Vidaza (Azacitidine)
Target (Total: 9)
  • Erdosteine
  • Delsym Orange/Delsym Grape (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: 6)
  • GPC Biotech AG (ADR) (GPCB)
  • Celgene Corporation (CELG)
  • salesforce.com, inc. (CRM)
  • MethylGene Inc. (MYG:CA)
Target (Total: 4)
  • Cardinal Health, Inc. (CAH)
  • UCB S.A.
  • MonoSol, LLC
  • Boehringer Ingelheim GmbH
Buyer (Total: 4)
  • US Oncology, Inc.
  • Cardinal Health, Inc. (CAH)
  • McKesson Corporation (MCK)
  • Government - United Kingdom
Target (Total: 12)
  • Wal-Mart Stores, Inc. (WMT)
  • CVS Caremark Corporation (CVS)
  • Walgreen Company (WAG)
  • Target Corporation (TGT)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 417 463
Revenue Per Employee 647,481.4 952,726.8
Total Revenue 67.3 110.0
Total Expenses 90.4 63.8
Other Revenue 0.0 0.0
Cost of Revenue 18.2 28.5
SG&A Expense 32.5 29.9
Research & Development 29.1 6.3
Other Operating Expense 0.0 0.0
Operating Income -23.0 46.2
Unusual Income 8.0 0.0
LT Debt to Capital 0 0
Fwd P/E -56.00 34.69
Fwd P/Rev 9.28 5.08
Book Value 380.0 307.1
Curr Portion of LTD/Cap Lease 0.0 0.0

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Biopharmaceuticals > Oncology

Target

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

Business Description

Buyer

Pharmion Corporation (Pharmion) is a global pharmaceutical company that acquires, develops and commercializes products for the treatment of hematology and oncology patients. It has established a portfolio of approved products and product candidates focused on the hematology and oncology markets. These include Pharmion?s primary commercial products, Vidaza (azacitidine for injection), which it markets and sells as an approved treatment for myelodysplastic syndromes in the United States, Switzerland, Israel and the Philippines. and Thalidomide Pharmion 50 milligram, a therapy for the treatment of multiple myeloma and certain other forms of cancer, which it sells on a compassionate use or named patient basis in certain countries of Europe. Thalidomide Pharmion is approved in Australia, New Zealand, Turkey, Israel, South Korea and Thailand for the treatment of multiple myeloma after the failure of standard therapies. In November 2006, it acquired Cabrellis Pharmaceuticals Corporation.

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. The Company markets market six oral-solid OTC products for adults under its Mucinex brand, six products in its Mucinex line of products for children, two Mucinex nasal spray products, and two products under its Delsym brand. In July 2007, the Company expanded the Mucinex franchise with its first nasal spray product, Mucinex Full Force Nasal Spray. In August 2007, it also began to market a second nasal spray product, Mucinex Moisture Smart Nasal Spray.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 72.65 72.99
Operating Margin % -40.39 19.45
Quick Ratio 4.49 2.77
Current Ratio 4.89 4.26
Coverage Ratio -0.08 0
Total Assets 451.5 361.2
Return on Equity % -26.47 14.19
Return on Assets % -22.28 12.07
Cash+ ST Inv. Per Share 6.96 1.79
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

Product Summary

Sector Buyer Target
Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Hematology
The Hematology Subsector includes therapeutics that treat blood-based diseases and disorders.
  
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 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.

Product Details

Sector Buyer Target
Healthcare
Biopharmaceuticals
Cardiovascular System  
Vascular Disorders  
Deep Vein Thrombosis (DVT)  
Anticoagulating Agents (Anticoagulants)  
Thrombin Inhibitors
Therapeutics that prevent or treat clots in blood vessels by preventing blood clots from forming.

Buyer Products:

  • Innohep (Tinzaparin Sodium)
  
Thromboembolism  
Anticoagulating Agents (Anticoagulants)  
Thrombin Inhibitors
Therapeutics that treat the obstruction of a blood vessel by preventing blood clots from forming.

Buyer Products:

  • Innohep (Tinzaparin Sodium)
  
Hematology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of hematological disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Oral Azacitidine
  
White Blood Cell (WBC) Disorders  
Myelodysplastic Syndromes (MDS)  
Antimetabolite Agents  
Pyrimidine Analogs
Therapeutics that treat and manage rmyelodysplastic syndrome by interfering with the production of DNA.

Buyer Products:

  • Vidaza (Azacitidine)
  
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:

  • Oral Azacitidine
  • Vidaza (Azacitidine)
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  
Respiratory System/Thoracic  
Lung Cancer  
Small Cell Lung Cancer (SCLC)  
Topoisomerase II Inhibitors
Therapeutics that treat and manage cancers of the small cells in the lung by inhibiting a specific enzyme, topoisomerase II, needed for transcription and replication of DNA.

Buyer Products:

  • Amrubicin (Anthracycline)
  
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 Orange/Delsym Grape (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:

  • Mucinex D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  • Maximum Strength 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 SE (Guaifenesin Extended Release)
  • Mucinex With Codeine (Guaifenesin/Codeine Combination Extended-Release)
  
Surgery  
Musculoskeletal System  
Deep Vein Thrombosis (DVT)  
Anticoagulating Agents (Anticoagulants)  
Thrombin Inhibitors
Therapeutics that treat vascular obstructions due to platelets and cell matter by blocking an enzyme involved in the clotting process.

Buyer Products:

  • Innohep (Tinzaparin Sodium)
  

- 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
Buyer
  Pfizer Inc. n/a 154,421.887 18.62 9.64 3.18 3.31 n/a
GlaxoSmithKline plc (ADR) n/a 129,213.735 12.21 12.17 2.87 2.89 12.60
sanofi-aventis (ADR) n/a 109,679.174 18.58 11.12 2.51 2.86 n/a
Genentech, Inc. n/a 71,389.037 25.77 21.93 6.09 5.57 n/a
Eli Lilly & Co. n/a 57,555.042 25.80 14.54 3.25 3.18 5.48
Celgene Corporation n/a 19,860.224 114.12 52.62 15.69 14.58 8.48
Millennium Pharmaceuticals, Inc. n/a 4,730.028 0.00 122.08 9.72 9.50 7.38
MGi Pharma, Inc. n/a 3,304.322 0.00 117.14 8.95 8.04 173.86
SuperGen, Inc. n/a 201.748 124.75 17.65 11.18 8.94 2.30
Poniard Pharmaceuticals, Inc. n/a 179.181 0.00 -4.90 n/a 5.60 2.07
Vion Pharmaceuticals, Inc. n/a 38.882 0.00 -0.96 1,914.50 1,849.70 4.71
Target
  The Procter & Gamble Company n/a 202,829.283 19.14 19.01 2.60 2.51 n/a
Johnson & Johnson n/a 178,744.902 16.90 14.37 2.93 2.86 n/a
Novartis AG (ADR) n/a 115,310.846 13.94 14.29 3.03 2.95 4.04
Bayer AG (ADR) n/a 60,061.987 8.29 15.86 1.31 1.43 n/a
Wyeth n/a 54,717.260 12.29 12.14 2.50 2.58 4.38
CVS Caremark Corporation n/a 52,518.244 23.60 18.95 0.79 0.70 n/a
Walgreen Company n/a 33,984.520 16.46 15.98 0.62 0.58 3.26
Schering-Plough Corporation n/a 30,807.112 15.76 14.94 2.65 2.70 2.35
Rite Aid Corporation n/a 1,805.396 0.00 -8.24 0.08 0.08 n/a
Matrixx Initiatives, Inc. n/a 137.966 20.92 16.04 1.49 1.41 2.75
MiddleBrook Pharmaceuticals, Inc. n/a 128.504 0.00 -3.36 14.53 9.94 n/a
Airborne, Inc. n/a n/a n/a n/a n/a n/a n/a

- 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
  GPC Biotech AG (ADR) 66.00% 114.028 0.00 n/a 3.65 n/a 1.51
Celgene Corporation n/a 19,860.224 114.12 52.62 15.69 14.58 8.48
salesforce.com, inc. n/a 6,252.214 543.86 403.21 9.25 9.00 16.95
MethylGene Inc. n/a 100.877 0.00 n/a 6.94 n/a 2.02
Ben Venue Laboratories, Inc. n/a n/a n/a n/a n/a n/a n/a
Ash Stevens, Inc. n/a n/a n/a n/a n/a n/a n/a
Target
  Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
UCB S.A. n/a n/a n/a n/a n/a n/a n/a
MonoSol, LLC n/a n/a n/a n/a n/a n/a n/a
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a

- 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
Overlap
  Cardinal Health, Inc. 11.00% 20,399.391 10.40 14.32 0.23 0.22 16.38
McKesson Corporation 9.00% 17,478.994 17.80 18.69 0.18 0.18 5.56
Buyer
  US Oncology, Inc. 19.00% n/a n/a n/a n/a n/a n/a
Cardinal Health, Inc. 11.00% 20,399.391 10.40 14.32 0.23 0.22 16.38
McKesson Corporation 9.00% 17,478.994 17.80 18.69 0.18 0.18 5.56
Government - United Kingdom n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. 10.00% 192,591.266 15.32 15.73 0.52 0.52 4.00
CVS Caremark Corporation 10.00% 52,518.244 23.60 18.95 0.79 0.70 n/a
Walgreen Company 10.00% 33,984.520 16.46 15.98 0.62 0.58 3.26
Target Corporation n/a 42,871.603 14.59 15.68 0.68 0.69 2.65
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Publix Super Markets (OLD) n/a 19,117.951 23.33 n/a 1.02 n/a 5.33
McKesson Corporation n/a 17,478.994 17.80 18.69 0.18 0.18 5.56
The Kroger Co. n/a 17,090.806 13.74 15.26 0.24 0.25 6.52
Safeway Inc. n/a 13,754.216 15.36 15.85 0.33 0.33 3.37
Sears Holdings Corporation n/a 13,626.014 11.22 18.42 0.26 0.28 2.41
AmerisourceBergen Corp. n/a 7,329.741 16.05 16.00 0.11 0.11 2.54
Rite Aid Corporation n/a 1,805.396 0.00 -8.24 0.08 0.08 n/a

- 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
Overlap
  Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
McKesson Corporation n/a 17,478.994 17.80 18.69 0.18 0.18 5.56
Buyer
  Pfizer Inc. n/a 154,421.887 18.62 9.64 3.18 3.31 n/a
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Celgene Corporation n/a 19,860.224 114.12 52.62 15.69 14.58 8.48
McKesson Corporation n/a 17,478.994 17.80 18.69 0.18 0.18 5.56
MGi Pharma, Inc. n/a 3,304.322 0.00 117.14 8.95 8.04 173.86
GPC Biotech AG (ADR) n/a 114.028 0.00 n/a 3.65 n/a 1.51
MethylGene Inc. n/a 100.877 0.00 n/a 6.94 n/a 2.02
Target
  Wal-Mart Stores, Inc. n/a 192,591.266 15.32 15.73 0.52 0.52 4.00
CVS Caremark Corporation n/a 52,518.244 23.60 18.95 0.79 0.70 n/a
Target Corporation n/a 42,871.603 14.59 15.68 0.68 0.69 2.65
Walgreen Company n/a 33,984.520 16.46 15.98 0.62 0.58 3.26
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Publix Super Markets (OLD) n/a 19,117.951 23.33 n/a 1.02 n/a 5.33
McKesson Corporation n/a 17,478.994 17.80 18.69 0.18 0.18 5.56
The Kroger Co. n/a 17,090.806 13.74 15.26 0.24 0.25 6.52
Safeway Inc. n/a 13,754.216 15.36 15.85 0.33 0.33 3.37
Sears Holdings Corporation n/a 13,626.014 11.22 18.42 0.26 0.28 2.41
AmerisourceBergen Corp. n/a 7,329.741 16.05 16.00 0.11 0.11 2.54
Rite Aid Corporation n/a 1,805.396 0.00 -8.24 0.08 0.08 n/a
Lipocine Inc. n/a n/a n/a n/a n/a n/a n/a
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
UCB S.A. n/a n/a n/a n/a n/a n/a n/a
MonoSol, LLC 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 255.9 351.4 607.3
Other Revenue 0.0 0.0 0.0
Total Revenue 255.9 351.4 607.3
Cost of Revenue 70.0 94.9 164.9
SG&A Expense 125.2 162.8 287.9
Depreciation & Amortization 9.9 0.0 9.9
Research & Development 91.9 23.8 115.8
Interest Expense 0.0 -1.1 -1.1
Other Operating Expense 0.0 2.7 2.7
Unusual Expense (Income) 62.3 0.0 62.3
Total Expenses 359.2 283.1 642.3
Operating Income -103.3 68.4 -35.0
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 8.1 0.0 8.1
Other, Net 0.0 0.0 0.0
Income Before Taxes -95.3 68.4 -26.9
Income Taxes 5.3 24.8 30.1
Income After Taxes -100.6 43.6 -57.0
Net Income - Excl. Xord. Items -100.6 43.6 -57.0
Net Income - Incl. Xord. Items -100.6 43.6 -57.0
Income Avail. to Common -100.6 43.6 -57.0
Share Items
Basic Avg. Shares Outstanding 37.0 35.8 72.8
Basic EPS - Excl. Xord. Items n/a 1.22 -0.78
Basic EPS - Incl. Xord. Items n/a 1.22 -0.78
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 37.0 37.2 74.2
F.D. EPS - Excl. Xord. Items n/a 1.17 -0.77
F.D. EPS - Incl. Xord. Items n/a 1.17 -0.77
Balance Sheet
Assets
Cash and Equivalents 135.0 32.8 167.8
ST Investments 122.6 33.7 156.3
Accounts Receivable 45.4 67.4 112.8
Inventory 13.0 55.9 68.9
Prepayments and Advances 0.0 7.9 7.9
Other Current Assets 14.0 8.1 22.0
Current Assets 330.0 205.8 535.8
PPE 0.0 24.6 24.6
Accum D&A 0.0 -4.2 -4.2
PPE, Net 11.0 20.4 31.4
Goodwill & Intangibles 104.7 125.4 230.1
Other Assets 0.0 0.0 0.0
Other LT Assets 5.8 9.7 15.5
Total Assets 451.5 361.2 812.7
Liabilities
Accounts Payable 10.1 0.0 10.1
Payable/Accrued 0.0 19.1 19.1
Accrued Expenses 57.5 11.6 69.1
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 0.0 17.5 17.5
Current Liab. 67.5 48.3 115.8
LT Debt 0.0 0.0 0.0
Total LT Debt 0.0 0.0 0.0
Deferred Taxes 3.0 2.9 5.8
Other LT Liab. 1.0 2.9 3.9
Total Liabilities 71.5 54.1 125.6
Shareholders Equity
Common Stock 0.0 0.4 0.4
Additional Paid in Capital 627.5 492.2 1,119.7
Retained Earnings -263.2 -185.4 -448.6
Other Equity 15.7 -0.0 15.7
Total Equity 380.0 307.1 687.2
Total Liab. & Equity 451.5 361.2 812.7
Shares Outstanding 37.2 35.9 73.0
Cash Flow
Operating Cash Flow
CF Net Income -100.6 43.6 -57.0
CF Depreciation 12.4 4.7 17.1
CF Deferred Taxes 0.0 -6.9 -6.9
Other Non-Cash Items 3.4 10.9 14.3
Change in Working Capital 20.2 -38.7 -18.5
Total Cash From Operating Activities -64.7 13.6 -51.1
Investing Cash Flow (not calculated)
Capital Expenditures -6.7 -8.7 -15.4
Other Investing Cash Flows -32.1 2.9 -29.2
Total Cash From Investing Activities -38.8 -5.8 -44.6
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 6.1 2.6 8.8
Purchase and Retirement of Debt -0.9 -10.2 -11.2
Other Financing Cash Flow 130.8 8.4 139.2
Total Cash From Financing Activities 135.9 0.8 136.8
Exchange Rate Effects 3.8 0.0 3.8
Net Change in Cash 36.2 8.6 44.8
Cash Taxes Paid 11.4 15.9 27.3
Cash Interest Paid 0.4 0.3 0.7