Summary

Other Scenarios:

Buyer: Pharmion Corporation (PHRM) Last Price: 41.31 Market Cap.: 1.52B
Target: Cubist Pharmaceuticals, Inc. (CBST) Last Price: 22.93 Market Cap.: 1.28B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 931
Biopharmaceuticals 375
Outsourced Services   66

- 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.

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: 6)
  • HepeX-B (Dual Human Monoclonal Antibodies)
  • Intravenous Cubicin (Daptomycin)
  • CDAD (Clostridium Difficile Associated Disease) Program
  • Lipopeptide Program
Buyer

n/a
Target
  • Directed Biosynthesis Program
  • Natural Products

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: 6)
  • Cardinal Health, Inc. (CAH)
  • WPP Group plc (ADR) (WPPGY)
  • Koninklijke DSM N.V. (ADR) (RDSMY)
  • Hospira, Inc. (HSP)
Buyer (Total: 4)
  • US Oncology, Inc.
  • Cardinal Health, Inc. (CAH)
  • McKesson Corporation (MCK)
  • Government - United Kingdom
Target (Total: 6)
  • Cardinal Health, Inc. (CAH)
  • AmerisourceBergen Corp. (ABC)
  • McKesson Corporation (MCK)
  • Novartis AG (ADR) (NVS)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 417 410
Revenue Per Employee 628,751.2 682,494.3
Total Revenue 65.8 69.8
Total Expenses 75.6 56.8
Other Revenue 0.0 0.2
Cost of Revenue 18.2 15.8
SG&A Expense 32.1 23.8
Research & Development 22.8 17.1
Other Operating Expense 0.0 0.0
Operating Income -9.7 13.0
Unusual Income 0.0 0.0
LT Debt to Capital 0 82.85
Fwd P/E -41.25 27.71
Fwd P/Rev 5.91 4.53
Book Value 392.6 72.5
Curr Portion of LTD/Cap Lease 0.0 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals > Oncology

Target

Focused (): *Healthcare > Biopharmaceuticals > Infectious Diseases > Bacterial

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

Cubist Pharmaceuticals, Inc. (Cubist) is a biopharmaceutical company focused on the research, development and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. The Company focuses on developing products for the anti-infective marketplace. Cubist?s flagship product, CUBICIN, is approved in the United States for the treatment of complicated skin and skin structure infections (cSSI) caused by S. aureus and certain other Gram-positive bacteria and for S. aureus blood-stream infections (bacteremia), including right-sided infective endocarditis caused by methicillin-resistant staphylococcus aureus (MRSA) and methicillin-sensitive staphylococcus aureus (MSSA). CUBICIN has also been approved for marketing for complicated skin infections caused by various Gram-positive pathogens in the European Union, Israel, Taiwan and Argentina, and also has been approved for S. aureus bloodstream infections in Israel.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 72.67 74.82
Operating Margin % -33.13 10.59
Quick Ratio 5.51 9.42
Current Ratio 5.98 9.9
Coverage Ratio -0.08 0.26
Total Assets 451.4 479.9
Return on Equity % -21.07 42.33
Return on Assets % -18.32 6.39
Cash+ ST Inv. Per Share 7.55 4.98
Total Debt 0.0 350.0
Total Debt to Equity % 0 483.08
Total Debt to Tangible Equity % 0 724.89
Debt to Asset % 0.00 72.93

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Digestive System
The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive system.
  
Hematology
The Hematology Subsector includes therapeutics that treat blood-based diseases and disorders.
  
Infectious Diseases
The Infectious Diseases Subsector includes therapeutics that treat diseases caused by the invasion and reproduction of microorganisms in the body.
  
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
  
Surgery
The Surgery Subsector includes therapeutics that treat complications associated with surgical procedures.
  
Outsourced Services  
Drug Discovery Services
The Drug Discovery Services Subsector includes companies that provide biopharmaceutical companies with novel biological targets and drug leads.
  

- 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)
  
Digestive System  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of digestive disorders in early stages of clinical research where human subject is involved.

Target Products:

  • HepeX-B (Dual Human Monoclonal Antibodies)
  
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 Syndrome  
Antimetabolite Agents  
Pyrimidine Analogs
Therapeutics that treat and manage rmyelodysplastic syndrome by interfering with the production of DNA.

Buyer Products:

  • Vidaza (Azacitidine)
  
Infectious Diseases  
Bacterial  
Antibacterial Agents  
Broad Spectrum  
Antibiotics  
Lipopeptides
Therapeutics that treat bacterial infections by inhibiting bacterial cell wall synthesis.

Target Products:

  • Intravenous Cubicin (Daptomycin)
  
Narrow Spectrum  
Dermatology  
Skin/Soft Tissue Infections  
Lipopeptides
Therapeutics that treat bacterial infections of non-skeletal tissue usually involving fat, muscle, and skin by disrupting multiple cbacterial cell membrane functions.

Target Products:

  • Intravenous Cubicin (Daptomycin)
  
Musculoskeletal System  
Skin/Soft Tissue Infections  
Lipopeptides
Therapeutics that treat bacterial infections of non-skeletal tissue usually involving fat, muscle, and skin by disrupting bacterial cytoplasmic memranes.

Target Products:

  • Intravenous Cubicin (Daptomycin)
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of infectious diseases in early stages of clinical research where human subject is involved.

Target Products:

  • HepeX-B (Dual Human Monoclonal Antibodies)
  • Intravenous Cubicin (Daptomycin)
  
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.

Target Products:

  • CDAD (Clostridium Difficile Associated Disease) Program
  • Lipopeptide Program
  
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:

  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Vidaza (Azacitidine)
  • Oral Azacitidine
  • Amrubicin (Anthracycline)
  
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)
  
Outsourced Services  
Drug Discovery Services  
Lead Discovery/Validation/Optimization  
Combinatorial Chemistry Libraries
Drug discovery companies that provide biopharmaceutical companies a library of combinatorial chemical compounds used for testing.

Target Products:

  • Directed Biosynthesis Program
  
High Throughput Screening (HTS)
Bioanalytical services that allow for the biological testing of up to 10,000 compounds each day.

Target Products:

  • Natural Products
  

- 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
  Pfizer Inc. n/a 167,982.399 9.62 11.67 3.47 3.59 6.94
Buyer
  Pfizer Inc. n/a 167,982.399 9.62 11.67 3.47 3.59 6.94
GlaxoSmithKline plc (ADR) n/a 149,745.402 13.68 13.40 3.24 3.29 12.04
sanofi-aventis (ADR) n/a 111,745.507 21.16 11.46 2.76 2.88 n/a
Genentech, Inc. n/a 83,284.296 31.85 28.94 7.61 7.07 9.14
Eli Lilly & Co. n/a 63,712.674 29.25 16.56 3.76 3.61 7.03
Celgene Corporation n/a 24,904.239 160.01 70.09 21.45 18.02 11.59
Millennium Pharmaceuticals, Inc. n/a 3,204.941 n/a n/a 6.84 7.00 5.18
MGi Pharma, Inc. n/a 1,964.719 n/a 88.54 5.56 5.01 573.64
SuperGen, Inc. n/a 239.684 n/a 52.75 11.84 10.11 2.76
Poniard Pharmaceuticals, Inc. n/a 197.889 n/a -4.53 n/a 19.06 2.15
Vion Pharmaceuticals, Inc. n/a 59.814 n/a -1.55 3,003.66 563.66 4.31
Target
  Pfizer Inc. n/a 167,982.399 9.62 11.67 3.47 3.59 6.94
Abbott Laboratories n/a 80,147.194 41.62 18.76 3.32 3.23 466.15
Wyeth n/a 61,476.991 13.77 13.47 2.88 2.88 5.25
King Pharmaceuticals, Inc. n/a 3,556.579 11.55 8.11 1.72 1.72 2.62
Theravance, Inc. n/a 1,721.569 n/a -11.42 81.38 62.21 n/a
Immtech Pharmaceuticals, Inc. n/a 122.328 n/a n/a 38.21 n/a 9.95
Achillion Pharmaceuticals, Inc. n/a 115.130 n/a -3.50 42.78 31.20 3.46
MiddleBrook Pharmaceuticals, Inc. n/a 105.433 n/a -2.32 13.07 7.15 22.37
Shionogi & Co., Ltd. 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% 501.380 n/a n/a 19.70 n/a 5.52
Celgene Corporation n/a 24,904.239 160.01 70.09 21.45 18.02 11.59
salesforce.com, inc. n/a 5,046.928 949.67 426.40 8.23 6.78 15.75
MethylGene Inc. n/a 136.092 n/a n/a 7.48 n/a 2.62
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 24,427.141 12.65 16.37 0.28 0.26 16.11
WPP Group plc (ADR) n/a 16,891.961 18.99 16.48 1.40 1.43 n/a
Koninklijke DSM N.V. (ADR) n/a 8,995.000 17.00 20.16 0.76 n/a 1.45
Hospira, Inc. n/a 6,081.383 58.10 18.21 2.02 1.80 n/a
XTL Biopharmaceuticals Ltd. (ADR) n/a 29.721 n/a -12.50 65.54 55.04 3.28
ACS Dobfar 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% 24,427.141 12.65 16.37 0.28 0.26 16.11
McKesson Corporation 9.00% 16,232.166 16.84 16.97 0.17 0.16 4.98
Buyer
  US Oncology, Inc. 19.00% n/a n/a n/a n/a n/a n/a
Cardinal Health, Inc. 11.00% 24,427.141 12.65 16.37 0.28 0.26 16.11
McKesson Corporation 9.00% 16,232.166 16.84 16.97 0.17 0.16 4.98
Government - United Kingdom n/a n/a n/a n/a n/a n/a n/a
Target
  Cardinal Health, Inc. 33.00% 24,427.141 12.65 16.37 0.28 0.26 16.11
AmerisourceBergen Corp. 32.00% 8,486.228 16.85 18.32 0.13 0.13 16.20
McKesson Corporation 21.00% 16,232.166 16.84 16.97 0.17 0.16 4.98
Novartis AG (ADR) n/a 124,683.665 20.47 16.16 3.28 3.32 5.52
Verenium Corporation n/a 347.409 n/a -7.99 6.74 7.50 18.38
Kuhnil Pharmaceutical Company n/a n/a n/a n/a n/a n/a 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 24,427.141 12.65 16.37 0.28 0.26 16.11
Buyer
  Pfizer Inc. n/a 167,982.399 9.62 11.67 3.47 3.59 6.94
Celgene Corporation n/a 24,904.239 160.01 70.09 21.45 18.02 11.59
Cardinal Health, Inc. n/a 24,427.141 12.65 16.37 0.28 0.26 16.11
McKesson Corporation n/a 16,232.166 16.84 16.97 0.17 0.16 4.98
MGi Pharma, Inc. n/a 1,964.719 n/a 88.54 5.56 5.01 573.64
GPC Biotech AG (ADR) n/a 501.380 n/a n/a 19.70 n/a 5.52
MethylGene Inc. n/a 136.092 n/a n/a 7.48 n/a 2.62
Dainippon Sumitomo Pharma Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
US Oncology, Inc. n/a n/a n/a n/a n/a n/a n/a
LEO Pharma A/S n/a n/a n/a n/a n/a n/a n/a
Nippon Shinyaku Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
Target
  Novartis AG (ADR) n/a 124,683.665 20.47 16.16 3.28 3.32 5.52
AstraZeneca plc (ADR) n/a 71,144.677 11.85 12.19 2.55 2.47 n/a
Eli Lilly & Co. n/a 63,712.674 29.25 16.56 3.76 3.61 7.03
Cardinal Health, Inc. n/a 24,427.141 12.65 16.37 0.28 0.26 16.11
Koninklijke DSM N.V. (ADR) n/a 8,995.000 17.00 20.16 0.76 n/a 1.45
Hospira, Inc. n/a 6,081.383 58.10 18.21 2.02 1.80 n/a
Verenium Corporation n/a 347.409 n/a -7.99 6.74 7.50 18.38
XTL Biopharmaceuticals Ltd. (ADR) n/a 29.721 n/a -12.50 65.54 55.04 3.28
Medison Pharma Ltd. n/a n/a n/a n/a n/a n/a n/a
Oryx Pharmaceuticals Inc. n/a n/a n/a n/a n/a n/a n/a
ACS Dobfar n/a n/a n/a n/a n/a n/a n/a
Kuhnil Pharmaceutical Company n/a n/a n/a n/a n/a n/a n/a
TTY Biopharm Company Limited 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 250.2 235.7 485.9
Other Revenue 0.0 0.5 0.5
Total Revenue 250.2 236.1 486.3
Cost of Revenue 68.4 59.5 127.8
SG&A Expense 117.1 88.5 205.6
Depreciation & Amortization 9.8 0.0 9.8
Research & Development 79.5 63.2 142.7
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 58.3 0.0 58.3
Total Expenses 333.1 211.1 544.2
Operating Income -82.9 25.0 -57.9
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 7.0 6.4 13.4
Other, Net 0.0 -0.0 -0.0
Income Before Taxes -75.9 31.4 -44.6
Income Taxes 6.8 0.7 7.5
Income After Taxes -82.7 30.7 -52.0
Net Income - Excl. Xord. Items -82.7 30.7 -52.0
Net Income - Incl. Xord. Items -82.7 30.7 -52.0
Income Avail. to Common -82.7 30.7 -52.0
Share Items
Basic Avg. Shares Outstanding 34.3 55.4 89.7
Basic EPS - Excl. Xord. Items n/a 0.55 -0.58
Basic EPS - Incl. Xord. Items n/a 0.55 -0.58
Full Dilution Adjustment 0.0 2.3 2.3
Fully Diluted Shares Outstanding 34.3 68.8 103.1
F.D. EPS - Excl. Xord. Items n/a 0.45 -0.50
F.D. EPS - Incl. Xord. Items n/a 0.45 -0.50
Balance Sheet
Assets
Cash and Equivalents 159.0 82.2 241.1
ST Investments 100.3 260.4 360.7
Accounts Receivable 44.6 25.2 69.8
Inventory 12.3 14.0 26.3
Prepayments and Advances 0.0 4.9 4.9
Other Current Assets 13.3 0.0 13.3
Current Assets 329.4 386.7 716.1
Accum D&A 0.0 0.0 0.0
PPE, Net 9.4 49.4 58.8
Goodwill & Intangibles 105.6 24.2 129.8
Long Term Investments 0.0 10.2 10.2
Other Assets 0.0 0.0 0.0
Other LT Assets 7.0 9.5 16.5
Total Assets 451.4 479.9 931.3
Liabilities
Accounts Payable 9.2 5.4 14.6
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 45.9 32.7 78.6
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 0.0 0.9 0.9
Current Liab. 55.1 39.0 94.2
LT Debt 0.0 350.0 350.0
Total LT Debt 0.0 350.0 350.0
Deferred Taxes 2.8 0.0 2.8
Other LT Liab. 0.9 18.4 19.3
Total Liabilities 58.8 407.5 466.3
Shareholders Equity
Common Stock 0.0 0.1 0.1
Additional Paid in Capital 622.1 536.5 1,158.6
Retained Earnings -241.8 -464.1 -705.9
Other Equity 12.2 0.0 12.2
Total Equity 392.6 72.5 465.0
Total Liab. & Equity 451.4 479.9 931.3
Shares Outstanding 36.8 55.5 92.3
Cash Flow
Operating Cash Flow
CF Net Income -82.7 30.7 -52.0
CF Depreciation 12.2 11.0 23.3
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 3.3 14.3 17.6
Change in Working Capital 7.9 20.5 28.4
Total Cash From Operating Activities -59.2 76.5 17.3
Investing Cash Flow (not calculated)
Capital Expenditures -5.1 -5.8 -10.9
Other Investing Cash Flows -3.9 -213.3 -217.2
Total Cash From Investing Activities -9.0 -219.0 -228.1
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 2.2 10.0 12.1
Purchase and Retirement of Debt -1.0 -0.3 -1.2
Other Financing Cash Flow 130.8 0.0 130.8
Total Cash From Financing Activities 132.0 9.7 141.7
Exchange Rate Effects 2.0 0.0 2.0
Net Change in Cash 65.7 -132.8 -67.1
Cash Taxes Paid 11.4 0.0 11.4
Cash Interest Paid 0.4 8.7 9.1