Summary

Other Scenarios:

Buyer: Biovail Corporation (USA) (BVF) Last Price: 23.41 Market Cap.: 3.75B
Target: Cephalon, Inc. (CEPH) Last Price: 60.10 Market Cap.: 3.65B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 866
Biopharmaceuticals 320
Outsourced Services 68

- 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: 50)
  • Procardia XL (Nifedipine)
  • Cardizem CD (Diltiazem Hydrochloride)
  • Cardizem XL (Diltiazem Hydrochloride)
  • Dilacor XR (Diltiazem HCL)
Target (Total: 17)
  • Trisenox (Arsenic Trioxide)
  • Gabitril (Tiagabine)
  • Sparlon (Modafinil)
  • Provigil (Modafinil)
Buyer
  • Biovail Contract Research Division (CRD)
  • ShearForm
  • Macrocap
  • SmartCoat
Target
  • Cima Labs DuraSolv
  • Cima Labs OraSolv
  • Cima Labs Microemulsions Technology
  • Cima Labs OraVescent

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 8)
  • GlaxoSmithKline plc (ADR) (GSK)
  • Merck & Co., Inc. (MRK)
  • Wyeth (WYE)
  • Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
Target (Total: 5)
  • sanofi-aventis (ADR) (SNY)
  • Abbott Laboratories (ABT)
  • Novo Nordisk A/S (ADR) (NVO)
  • Elan Corporation, plc (ADR) (ELN)
Buyer (Total: 6)
  • GlaxoSmithKline plc (ADR) (GSK)
  • AstraZeneca PLC (ADR) (AZN)
  • Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
  • Forest Laboratories, Inc. (FRX)
Target (Total: 3)
  • Cardinal Health, Inc. (CAH)
  • McKesson Corporation (MCK)
  • AmerisourceBergen Corp. (ABC)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 1,744 2,895
Revenue Per Employee 508,342.2 493,687.8
Total Revenue 220.5 356.9
Total Expenses 143.0 352.3
Other Revenue 5.9 11.4
Cost of Revenue 49.3 58.9
SG&A Expense 56.6 148.8
Research & Development 22.3 105.0
Other Operating Expense 0.0 0.0
Operating Income 77.5 4.7
Unusual Income 0.0 13.1
LT Debt to Capital 23.93 1.6
Fwd P/E 9.89 16.39
Fwd P/Rev 3.54 2.13
Book Value 1,276.1 756.9
Curr Portion of LTD/Cap Lease 24.7 1,683.6

Key Ratios

  Buyer Target
Gross Margin % 78.14 85.88
Operating Margin % 36.38 -19.97
Quick Ratio 2.35 0.38
Current Ratio 2.74 0.58
Coverage Ratio -0.07 -0.01
Total Assets 2,058.6 2,935.3
Return on Equity % 23.77 -26.17
Return on Assets % 14.74 -6.75
Cash+ ST Inv. Per Share 3.21 7.37
Total Debt 426.1 1,695.9
Total Debt to Equity % 33.39 224.07
Total Debt to Tangible Equity % 150.78 -387.64
Debt to Asset % 20.70 57.78

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals

Target

Focused (): *Healthcare > Biopharmaceuticals > Neurology

Business Description

Buyer

Biovail Corporation (Biovail) is a specialty pharmaceutical company that applies advanced drug delivery technologies to improve the clinical effectiveness of medicines. The Company commercializes these products both directly and through partners. Its main therapeutic areas of focus are central nervous system disorders (CNS), pain management and cardiovascular disease (including type II diabetes). Biovail has a portfolio of drug delivery technologies that are used to develop improved formulations of late-stage, pre-market and existing in-market drugs that confer meaningful therapeutic benefits to patients. Its portfolio of oral drug delivery technologies includes controlled release, graded release, enhanced absorption, rapid absorption, taste masking and oral disintegration. These technologies can be combined to develop a controlled-release, orally disintegrating and taste-masked tablet. Its drug delivery technologies are applicable to a range of molecules.

Target

Cephalon, Inc. is a biopharmaceutical company dedicated to the discovery, development and marketing of products to treat sleep and neurological disorders, cancer and pain. The Company markets three products in the United States and other products in various countries throughout Europe. Cephalon's PROVIGIL Tablets contains modafinil, which is a class of wakefulness-promoting agents. ACTIQ (oral transmucosal fentanyl citrate) is approved in the United States for the management of cancer pain in opioid-tolerant patients. GABITRIL (tiagabine hydrochloride) is a selective gamma-aminobutyric acid (GABA) reuptake inhibitor approved for use as adjunctive therapy in the treatment of partial seizures in epileptic patients. On August 12, 2004, the Company completed its acquisition of CIMA LABS INC.

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Endocrinology/Metabolism
The Endocrinology/Metabolism Subsector includes therapeutics that treat metabolic disorders and conditions resulting from the dysfunction of hormone secreting glands.
  
Hematology
The Hematology Subsector includes therapeutics that treat blood-based diseases and disorders.
  
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.
  
Neurology
The Neurology Subsector includes therapeutics that treat disorders of the central nervous system, including the brain, spinal cord, and nerves.
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
  
Pain Management
The Pain Management Subsector includes therapeutics that treat and management pain.
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.
Toxicology
The Toxicology Subsector includes therapeutics that treat harmful effects from exposure to toxic substances; narcotics, nicotine and alcohol withdrawal therapeutics are also included in this sector.
  
Outsourced Services
Development/Manufacturing Services
The Development/Manufacturing Services Subsector includes companies that provide research, development, manufacturing, sales and marketing to biopharmaceutical and medical device companies.
  
Drug Delivery Technology
The Drug Delivery Technology Subsector includes companies that develop novel delivery methods for therapeutics.

- 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  
Heart Disorders  
Angina  
Calcium Channel Blocking Agents
Therapeutics that treat chest pains by preventing the entry of calcium into heart muscle cells.

Buyer Products:

  • Procardia XL (Nifedipine)
  • Cardizem CD (Diltiazem Hydrochloride)
  • Cardizem XL (Diltiazem Hydrochloride)
  • Dilacor XR (Diltiazem HCL)
  • Tiazac (Diltiazem)
  • Cardizem LA (Diltiazem Hydrochloride)
  
Vasodilatory Agents
Therapeutics that treat chest pains by acting on blood vessels to lower blood pressure.

Buyer Products:

  • Isordil (Isosorbide Dinitrate)
  
Arrhythmia  
Sodium Channel Blocking Agents
Therapeutics that treat abnormal rhythm of the heart by preventing the entry of sodium into heart muscle cells.

Buyer Products:

  • Norpace (Disopyramide Phosphate)
  
Heart Failure (HF)  
Angiotensin Converting Enzyme Inhibitors (ACE Inhibitors)
Therapeutics that treat the ineffective pumping of the heart by inhibiting the renin-angiotensin system.

Buyer Products:

  • Vasotec Tablets (Enalapril Maleate)
  
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:

  • Enalapril XL
  • Carvedilol SB (Super-Bioavailable Carvedilol)
  • Teveten SB (Super-Bioavailable Eprosartan)
  
Vascular Disorders  
Hypertension  
Angiotensin Converting Enzyme Inhibitors (ACE Inhibitors)
Therapeutics that treat high blood pressure by inhibiting the renin-angiotensin system.

Buyer Products:

  • Vasotec I.V. (Enalapril)
  • Vasotec Tablets (Enalapril Maleate)
  
Angiotensin Converting Enzyme Inhibitors (ACE Inhibitors)/Thiazide Diuretic Agents
Therapeutics that treat high blood pressure by inhibiting the renin-angiotensin system and increasing the excretion of sodium ions, potassium ions, and water through urine.

Buyer Products:

  • Vaseretic (Enalapril Maleate/Hydrochlorothiazide)
  
Calcium Channel Blocking Agents
Therapeutics that treat high blood pressure by blocking the beta adrenergic receptors of the heart muscle and increasing the excretion of sodium ions, potassium ions, and water through urine.

Buyer Products:

  • Adalat CC (Nifedipine)
  • Cardizem LA (Diltiazem Hydrochloride)
  • Verelan (Verapamil)
  • Cardizem SR (Diltiazem Hydrochloride)
  • Tiazac (Diltiazem)
  • Procardia XL (Nifedipine)
  • Dilacor XR (Diltiazem HCL)
  • Cardizem XL (Diltiazem Hydrochloride)
  • Cardizem CD (Diltiazem Hydrochloride)
  
Peripheral Vascular Disease  
Blood Viscosity Reducing Agents
Therapeutics that treat arterial obstruction outside of the heart by altering the flow of red blood cells.

Buyer Products:

  • Trental (Pentoxifylline)
  
Endocrinology/Metabolism  
Diabetes  
Non-Insulin Dependent Diabetes Mellitus (NIDDM)/Type 2 Diabetes  
Biguanides
Therapeutics that treat abnormally high blood glucose levels by decreasing the production of glucose in the liver, decreasing intestinal absorption of glucose and increasing peripheral uptake and utilization of glucose.

Buyer Products:

  • Glumetza (Metformin GR)
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of endocrinology disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Simvastatin EA
  
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.

Target Products:

  • Trisenox (Arsenic Trioxide)
  
Immunology  
Autoimmune Disorders  
Arthritis  
Rheumatoid Arthritis (RA)  
Analgesics  
Non-Steroidal Anti-Inflammatory Drugs (NSAID)  
Non-Specific Cyclooxygenase Inhibitors (COX Inhibitors)
Therapeutics that treat pain associated with chronic inflammation of the joints by blocking cyclooxygenase activity.

Buyer Products:

  • Oruvail (Ketoprofen)
  • Voltaren XR (Diclofenac Sodium)
  
Infectious Diseases  
Bacterial  
Antibacterial Agents  
Broad Spectrum  
Antibiotics  
Cephalosporin Derivatives
Therapeutics that treat a wide variety of infections by inhibiting bacterial cell wall synthesis.

Buyer Products:

  • Cedax (Ceftibuten)
  
Viral  
DNA Viruses  
Herpesvirus  
Herpes Simplex Type 1  
Purine Nucleoside Analogs
Therapeutics that treat viral infections characterized by recurrent cold sores and fever blisters by inhibiting replication of viral DNA by incorporating themselves into growing viral DNA stands.

Buyer Products:

  • Zovirax Cream/Ointment (Acyclovir)
  
Musculoskeletal System  
Skeletal Disorders  
Joint Disorders  
Osteoarthritis (OA)  
Non-Steroidal Anti-Inflammatory Drugs (NSAID)  
Non-Specific Cyclooxygenase Inhibitors (COX Inhibitors)
Therapeutics that treat inflammation by non-specifically inhibiting the action of cyclooxygenase.

Buyer Products:

  • Voltaren XR (Diclofenac Sodium)
  • Oruvail (Ketoprofen)
  
Rheumatoid Arthritis (RA)  
Analgesics  
Non-Steroidal Anti-Inflammatory Drugs (NSAID)  
Non-Specific Cyclooxygenase Inhibitors (COX Inhibitors)
Therapeutics that treat pain associated with chronic inflammation of the joints by blocking cyclooxygenase activity.

Buyer Products:

  • Voltaren XR (Diclofenac Sodium)
  • Oruvail (Ketoprofen)
  
Neurology
Neurological Disorders
Epilepsy
Partial Seizures
Complex
Adjunctive Therapy  
Gamma-Aminobutyric Acid (GABA) Reuptake Inhibitors
Therapeutics that treat complex partial seizures by preventing the uptake of gamma-aminobutyric acid, which prevent nerve activation.

Target Products:

  • Gabitril (Tiagabine)
  
Monotherapy  
Sodium Channel Blocking Agents
Therapeutics that treat complex partial seizures by blocking the sodium channels which in turn block the conductance of neural impulses through the brain.

Buyer Products:

  • Carbamazepine XR
  
Simple
Adjunctive Therapy  
Gamma-Aminobutyric Acid (GABA) Reuptake Inhibitors
Therapeutics that treat simple partial seizures by preventing the uptake of gamma-aminobutyric acid which prevents nerve activation.

Target Products:

  • Gabitril (Tiagabine)
  
Monotherapy  
Sodium Channel Blocking Agents
Therapeutics that treat simple partial seizures by blocking the sodium channels which in turn block the conductance of neural impulses.

Buyer Products:

  • Carbamazepine XR
  
Headaches  
Vascular (Migraine)  
Acute Treatments  
Selective Serotonin Receptor Agonists (Triptans)
Therapeutics that treat vascular/migraine headaches by stimulating the receptor that binds with the neurotransmitter, serotonin.

Buyer Products:

  • Sumatriptan FD
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of nervous system and mental disorders in early stages of clinical research where human subject is involved.

Target Products:

  • Gabitril (Tiagabine)
  
Psychiatric Disorders
Anxiety
Generalized Anxiety Disorder (GAD)
Gamma-Aminobutyric Acid (GABA) Receptor Agonists
Therapeutics that treat anxiety by enhancing the inhibitory neurotransmitter action of gamma-aminobutyric acid.

Buyer Products:

  • Ativan (Lorazepam)
  • Ativan Injection (Lorazepam)
  
Gamma-Aminobutyric Acid (GABA) Reuptake Inhibitors
Therapeutics that treat anxiety by preventing the uptake of gamma-aminobutyric acid, which prevent nerve activation.

Target Products:

  • Gabitril (Tiagabine)
  
Obsessive Compulsive Disorder (OCD)  
Selective Serotonin Reuptake Inhibitors (SSRI)
Therapeutics that treat Anxiety by selectively preventing the removal of serotonin.

Buyer Products:

  • Fluoxetine ODT
  
Childhood/Adolescent Disorders  
Attention Deficit Disorder (ADD)/Attention Deficit Hyperactivity Disorder (ADHD)  
Alpha Adrenergic Receptor Agonists  
Eating Disorders  
Bulimia  
Selective Serotonin Reuptake Inhibitors (SSRI)
Therapeutics that treat eating disorders by selectively preventing the removal of serotonin.

Buyer Products:

  • Fluoxetine ODT
  
Mood Disorders  
Depression  
Selective Serotonin Reuptake Inhibitors (SSRI)
Therapeutics that treat depression by selectively preventing the removal of serotonin.

Buyer Products:

  • Paroxetine CR/FD
  • Fluoxetine ODT
  • Citalopram ODT
  
Serotonin/Norepinephrine Reuptake Inhibitors
Therapeutics that treat depression by inhibiting the neuronal uptake of serotonin and norepinephrine.

Buyer Products:

  • Wellbutrin XL (Bupropion Hydrochloride)
  
Sleep Disorders
Excessive Daytime Sleepiness (EDS)  
Alpha Adrenergic Receptor Agonists
Therapeutics that treat excessive daytime sleepiness (EDS) by stimulating the adrenergic receptors, which cause nervous system stimulation.

Target Products:

  • Provigil (Modafinil)
  • Nuvigil (Armodafinil)
  
Insomnia  
Gamma-Aminobutyric Acid (GABA) Receptor Agonists
Therapeutics that treat insomnia by enhancing the inhibitory action of gamma-aminobutyric acid.

Buyer Products:

  • Zolpidem ODT
  
Narcolepsy  
Alpha Adrenergic Receptor Agonists
Therapeutics that treat narcolepsy by stimulating the adrenergic receptors, which causes nervous system stimulation.

Target Products:

  • Provigil (Modafinil)
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of nervous system and mental disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Bupropion/Venlafaxine Combination
  • Venlafaxine EA
  • Ativan ODT (Lorazepam)
  
Oncology  
Hematology  
Leukemia  
Myeloid  
Acute  
Promyelocytic (APL)  
DNA Fragmenting Agents
Therapeutics that treat leukemia by breaking DNA, resulting in the death of cancer cells.

Target Products:

  • Trisenox (Arsenic Trioxide)
  
Lymphoma  
Non-Hodgkin`s Lymphoma (NHL)  
Alkylating Agents  
Nitrogen Mustard Type
Therapeutics derived from mustard gas that treat and manage lymphomas of B-cells and T-cells by interacting with DNA and inhibiting cell division.

Target Products:

  • Treanda (Bendamustine Hydrochloride)
  
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.

Target Products:

  • CEP-7055 (VEGFR Inhibitor)
  • CEP-701(Lestaurtinib)
  • Trisenox (Arsenic Trioxide)
  
Pain Management
Narcotics
Analgesics/Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alters the both the perception of pain as well as the emotional response to pain.

Buyer Products:

  • Tramadol/Acetaminophen ODT Combination
  
Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alter both the perception of pain as well as the emotional response to pain.

Buyer Products:

  • Tramadol ODT
  • Ralivia ER (Tramadol Hydrochloride Extended Release)
  • Ultram ER (Tramadol Hydrochloride Extended Release)/Ultram ODT (Tramadol Hydrochloride Orally Disintegrating Tablet)

Target Products:

  • Fentora (Fentanyl Buccal Tablet)
  • Actiq Sugar-Free (Oral Transmucosal Fentanyl Citrate) [C-II]
  • Actiq (Oral Transmucosal Fentanyl Citrate) [C-II]
Non-Narcotics  
Non-Steroidal Anti-Inflammatory Drugs (NSAID)  
Non-Specific Cyclooxygenase Inhibitors (COX Inhibitors)
Therapeutics that treat pain by non-specifically inhibiting the action of cyclooxygenase.

Buyer Products:

  • Oruvail (Ketoprofen)
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of pain in early stages of clinical research where human subject is involved.

Target Products:

  • Gabitril (Tiagabine)
  
Respiratory System
Lower Respiratory Tract Disorders (Lung Disorders)  
Asthma  
Acute Treatments  
Bronchodilators  
Phosphodiesterase Inhibitors (PDE Inhibitors)
Therapeutics that inhibit the break down of phosphodiesters thereby increasing levels of Nitric Oxide which help in dilating the blood vessels in the lungs.

Buyer Products:

  • Theo-24 (Theophylline)
  
Prophylactic Treatments  
Phosphodiesterase Inhibitors (PDE Inhibitors)
Therapeutics that inhibit the break down of phosphodiesters thereby increasing levels of Nitric Oxide which help in relaxing smooth muscles in the lungs.

Buyer Products:

  • Theo-24 (Theophylline)
  
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:

  • CEP-1347 (MAP3K9 Kinase Inhibitor)
  
Toxicology  
Substance Abuse  
Withdrawal  
Alcohol  
Opioid Antagonists
Therapeutics that treat alcohol dependence by blocking the effect of opioids.

Target Products:

  • Medisorb Vivitrol (Naltrexone)
  
Narcotics  
Opioid Antagonists
Therapeutics that treat narcotic addiction by blocking the effect of opioids.

Target Products:

  • Medisorb Vivitrol (Naltrexone)
  
Outsourced Services
Development/Manufacturing Services  
Contract Research Organizations (CRO)  
Full Service
Contract Research Organizations (CROs) that conduct both preclinical and clinical studies in the development of new therapeutic products.

Buyer Products:

  • Biovail Contract Research Division (CRD)
  
Drug Delivery Technology
Oral Delivery
Effervescents
Drug Delivery Technologies used to deliver drugs by dissolving in liquid which can then be ingested.

Buyer Products:

  • ShearForm

Target Products:

  • Cima Labs DuraSolv
  • Cima Labs OraSolv
Lipid Based
Drug Delivery Technologies used to deliver drugs in a liposomal/lipid formulation.

Target Products:

  • Cima Labs Microemulsions Technology
  
Osmotic
Drug Delivery Technologies utilizing an osmotic mechanism for sustained release of the drugs.

Buyer Products:

  • Macrocap
  
Polymer Coated
Drug Delivery Technologies used to deliver drugs in a polymer based matrix to hold/enclose the drug.

Buyer Products:

  • SmartCoat
  • Dimatrix
  • Multipart
  • Chronotabs
  • CEFORM
  • Consurf
  
Taste Masking
Drug Delivery Technologies used to mask the taste of various drugs.

Buyer Products:

  • ShearForm
  
Transmucosal  
Effervescents
Drug Delivery Technologies used to deliver drugs by dissolving in liquid which can then be ingested.

Target Products:

  • Cima Labs OraVescent
  

- 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
  Johnson & Johnson n/a 177,424.679 16.54 16.27 3.50 3.36 6.29
GlaxoSmithKline plc (ADR) n/a 162,027.127 17.88 16.12 3.98 3.78 18.69
Novartis AG (ADR) n/a 126,437.007 22.28 17.12 3.77 3.42 3.75
Tyco International Ltd. n/a 56,006.554 15.20 14.99 1.43 1.35 12.10
Bristol Myers Squibb Co. n/a 50,848.907 15.96 21.60 2.63 2.64 10.88
Impax Laboratories Inc. n/a 365.530 728.01 9.78 3.25 1.92 6.23
BioDelivery Sciences International, Inc. n/a 25.211 n/a n/a 31.14 n/a -6.28
Access Pharmaceuticals, Inc. n/a 4.342 n/a n/a n/a n/a -0.81
Buyer
  Johnson & Johnson n/a 177,424.679 16.54 16.27 3.50 3.36 6.29
GlaxoSmithKline plc (ADR) n/a 162,027.127 17.88 16.12 3.98 3.78 18.69
Target
  Johnson & Johnson n/a 177,424.679 16.54 16.27 3.50 3.36 6.29
Pfizer Inc. n/a 171,973.837 14.55 11.50 3.38 3.32 9.66
GlaxoSmithKline plc (ADR) n/a 162,027.127 17.88 16.12 3.98 3.78 18.69
Novartis AG (ADR) n/a 126,437.007 22.28 17.12 3.77 3.42 3.75
Eli Lilly & Co. n/a 62,462.337 30.17 17.42 4.20 3.99 5.34
Tyco International Ltd. n/a 56,006.554 15.20 14.99 1.43 1.35 12.10
Bristol Myers Squibb Co. n/a 50,848.907 15.96 21.60 2.63 2.64 10.88
Celgene Corporation n/a 16,477.575 535.03 124.29 27.17 19.37 28.00
Forest Laboratories, Inc. n/a 12,402.728 18.19 16.04 4.19 3.81 5.02
Shire plc (ADR) n/a 7,380.894 n/a 25.90 4.40 4.05 9.28
Barr Pharmaceuticals, Inc. n/a 5,063.190 16.88 15.39 4.07 3.95 4.50
Millennium Pharmaceuticals, Inc. n/a 3,138.507 n/a -65.73 5.63 6.38 5.81
Noven Pharmaceuticals, Inc. n/a 423.872 42.14 26.22 8.31 7.16 3.03
Pain Therapeutics, Inc. n/a 368.296 n/a 63.77 18.05 5.93 5.56
Impax Laboratories Inc. n/a 365.530 728.01 9.78 3.25 1.92 6.23

- 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
  GlaxoSmithKline plc (ADR) n/a 162,027.127 17.88 16.12 3.98 3.78 18.69
Merck & Co., Inc. n/a 79,508.734 16.72 15.02 3.60 3.76 4.60
Wyeth n/a 59,773.596 16.10 14.22 3.14 2.97 6.67
Teva Pharmaceutical Industries Ltd (ADR) n/a 23,784.110 n/a 16.38 4.23 2.80 -37.90
Flamel Technologies S.A. (ADR) n/a 439.708 n/a -25.97 21.35 9.15 5.33
Newkirk Realty Trust, Inc. n/a 336.350 11.51 6.82 1.41 1.38 2.03
DepoMed, Inc. n/a 242.823 n/a -10.32 42.37 17.34 196.46
Ethypharm n/a n/a n/a n/a n/a n/a n/a
Target
  sanofi-aventis (ADR) n/a 136,487.256 48.05 14.25 3.80 3.74 n/a
Abbott Laboratories n/a 66,558.366 19.79 17.37 3.01 2.93 14.70
Novo Nordisk A/S (ADR) n/a 20,585.032 20.57 19.87 3.37 n/a 4.50
Elan Corporation, plc (ADR) n/a 7,161.878 n/a -21.42 13.72 11.48 -11.17
PHC, Inc. n/a 40.594 14.49 n/a 1.10 n/a 6.63

- 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
  GlaxoSmithKline plc (ADR) n/a 162,027.127 17.88 16.12 3.98 3.78 18.69
AstraZeneca PLC (ADR) n/a 94,395.957 18.80 16.22 3.87 3.69 8.94
Teva Pharmaceutical Industries Ltd (ADR) n/a 23,784.110 n/a 16.38 4.23 2.80 -37.90
Forest Laboratories, Inc. n/a 12,402.728 18.19 16.04 4.19 3.81 5.02
KOS Pharmaceuticals, Inc. n/a 1,778.360 20.81 23.21 2.31 2.06 3.72
DepoMed, Inc. n/a 242.823 n/a -10.32 42.37 17.34 196.46
Target
  Cardinal Health, Inc. n/a 26,869.213 28.98 20.53 0.34 0.33 7.14
McKesson Corporation n/a 14,378.811 18.95 17.79 0.16 0.15 3.67
AmerisourceBergen Corp. n/a 8,799.000 25.76 19.96 0.15 0.15 4.63

- 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
  Johnson & Johnson n/a 177,424.679 16.54 16.27 3.50 3.36 6.29
sanofi-aventis (ADR) n/a 136,487.256 48.05 14.25 3.80 3.74 n/a
Wyeth n/a 59,773.596 16.10 14.22 3.14 2.97 6.67
Teva Pharmaceutical Industries Ltd (ADR) n/a 23,784.110 n/a 16.38 4.23 2.80 -37.90
H. Lundbeck A/S n/a n/a n/a n/a n/a n/a n/a
Buyer
  Johnson & Johnson n/a 177,424.679 16.54 16.27 3.50 3.36 6.29
GlaxoSmithKline plc (ADR) n/a 162,027.127 17.88 16.12 3.98 3.78 18.69
Target
  Johnson & Johnson n/a 177,424.679 16.54 16.27 3.50 3.36 6.29
sanofi-aventis (ADR) n/a 136,487.256 48.05 14.25 3.80 3.74 n/a
Novartis AG (ADR) n/a 126,437.007 22.28 17.12 3.77 3.42 3.75
AstraZeneca PLC (ADR) n/a 94,395.957 18.80 16.22 3.87 3.69 8.94
Abbott Laboratories n/a 66,558.366 19.79 17.37 3.01 2.93 14.70
Wyeth n/a 59,773.596 16.10 14.22 3.14 2.97 6.67
Bristol Myers Squibb Co. n/a 50,848.907 15.96 21.60 2.63 2.64 10.88
Schering-Plough Corporation n/a 28,184.381 65.94 29.87 2.91 2.78 3.93
Cardinal Health, Inc. n/a 26,869.213 28.98 20.53 0.34 0.33 7.14
Teva Pharmaceutical Industries Ltd (ADR) n/a 23,784.110 n/a 16.38 4.23 2.80 -37.90
Novo Nordisk A/S (ADR) n/a 20,585.032 20.57 19.87 3.37 n/a 4.50
Akzo Nobel N.V. (ADR) n/a 15,386.136 12.82 15.39 0.95 0.95 4.20
McKesson Corporation n/a 14,378.811 18.95 17.79 0.16 0.15 3.67
AmerisourceBergen Corp. n/a 8,799.000 25.76 19.96 0.15 0.15 4.63
Elan Corporation, plc (ADR) n/a 7,161.878 n/a -21.42 13.72 11.48 -11.17
Barr Pharmaceuticals, Inc. n/a 5,063.190 16.88 15.39 4.07 3.95 4.50
Mylan Laboratories Inc. n/a 4,212.696 25.40 17.42 3.35 3.25 7.27
Bausch & Lomb Inc. n/a 2,636.833 17.45 18.50 1.12 1.10 4.62

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 959.1 1,235.5 2,194.6
Other Revenue 23.3 53.4 76.6
Total Revenue 982.4 1,288.9 2,271.2
Cost of Revenue 214.8 182.0 396.8
SG&A Expense 209.2 494.4 703.6
Depreciation & Amortization 61.1 92.2 153.3
Research & Development 90.8 379.0 469.8
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 49.0 398.7 447.7
Total Expenses 625.0 1,546.3 2,171.2
Operating Income 357.4 -257.4 100.0
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -26.7 2.1 -24.6
Other, Net -1.2 -27.4 -28.6
Income Before Taxes 329.5 -282.6 46.8
Income Taxes 26.1 -84.6 -58.5
Income After Taxes 303.3 -198.0 105.3
Net Income - Excl. Xord. Items 303.3 -198.0 105.3
Discontinued Operations -13.8 0.0 -13.8
Net Income - Incl. Xord. Items 289.6 -198.0 91.5
Income Avail. to Common 289.6 -198.0 91.5
Share Items
Basic Avg. Shares Outstanding 159.7 59.7 219.4
Basic EPS - Excl. Xord. Items 1.90 -3.41 0.48
Basic EPS - Incl. Xord. Items 1.82 -3.41 0.42
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 159.7 73.5 233.2
F.D. EPS - Excl. Xord. Items 1.90 -3.45 0.45
F.D. EPS - Incl. Xord. Items 1.81 -3.45 0.39
Dividends Per Common Share 0.62 0.00 0.62
Balance Sheet
Assets
Cash and Equivalents 512.8 289.1 801.9
ST Investments 0.0 252.4 252.4
Accounts Receivable 105.5 225.4 330.9
Inventory 91.7 150.5 242.1
Prepayments and Advances 11.8 0.0 11.8
Other Current Assets 0.0 237.4 237.4
Current Assets 721.8 1,154.6 1,876.5
Accum D&A 0.0 0.0 0.0
PPE, Net 210.1 346.7 556.8
Goodwill & Intangibles 993.5 1,194.4 2,187.8
Long Term Investments 76.6 0.0 76.6
Other Assets 0.0 0.0 0.0
Other LT Assets 56.7 239.6 296.3
Total Assets 2,058.6 2,935.3 4,994.0
Liabilities
Accounts Payable 37.2 87.2 124.4
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 110.3 231.3 341.6
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 24.7 1,683.6 1,708.3
Other (Current) Liabilities 91.2 0.0 91.2
Current Liab. 263.4 2,002.0 2,265.4
LT Debt 401.5 12.3 413.8
Total LT Debt 401.5 12.3 413.8
Deferred Taxes 0.0 108.9 108.9
Other LT Liab. 117.7 55.2 172.9
Total Liabilities 782.6 2,178.5 2,961.0
Shareholders Equity
Common Stock 1,464.1 0.6 1,464.7
Additional Paid in Capital 7.2 1,305.4 1,312.7
Retained Earnings -245.7 -566.5 -812.2
Treasure Stock 0.0 -17.5 -17.5
Other Equity 50.5 34.9 85.3
Total Equity 1,276.1 756.9 2,032.9
Total Liab. & Equity 2,058.6 2,935.3 4,994.0
Shares Outstanding 159.7 60.4 220.1
Cash Flow
Operating Cash Flow
CF Net Income 303.3 -198.0 105.3
CF Depreciation 104.4 92.6 197.0
CF Deferred Taxes 0.0 -46.8 -46.8
Other Non-Cash Items 38.7 309.6 348.3
Change in Working Capital 78.4 -29.9 48.4
Total Cash From Operating Activities 524.8 127.4 652.2
Investing Cash Flow (not calculated)
Capital Expenditures -76.6 -163.7 -240.3
Other Investing Cash Flows 96.3 -598.0 -501.7
Total Cash From Investing Activities 19.6 -761.7 -742.1
Financing Cash Flow (not calculated)
Dividends Paid -79.8 0.0 -79.8
Purchase Or Sale of Stock 6.0 332.3 338.2
Purchase and Retirement of Debt -0.9 386.8 385.9
Other Financing Cash Flow -1.4 -382.3 -383.7
Total Cash From Financing Activities -115.7 336.8 221.1
Exchange Rate Effects 0.2 -3.7 -3.5
Net Change in Cash 428.9 -301.2 127.7
Cash Taxes Paid 9.2 16.0 25.2
Cash Interest Paid 31.4 16.6 48.0