Summary

Other Scenarios:

Buyer: Abgenix, Inc. (ABGX) Last Price: 22.50 Market Cap.: 2.07B
Target: Penwest Pharmaceuticals (PPCO) Last Price: 21.69 Market Cap.: 489.15M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 858
Biopharmaceuticals 312
Outsourced Services 70

- 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)
  • Catalytic Antibody (CAb) Technology
  • XenoMouse/XenoMax
Target (Total: 14)
  • Geminex
  • TIMERx
  • SyncroDose
  • Gastroretentive Drug Delivery System
Buyer
  • ABX-PTH (ABX10241)
  • Panitumumab (ABX-EGF)
  • ABX-MA1 (MUC18 Targeting Antibody)
Target
  • Procardia XL (Nifedipine)
  • PW2132
  • PW2101
  • PW4102

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 3)
  • EMC Corporation (EMC)
  • Digital Realty Trust, Inc. (DLR)
  • Lexicon Genetics Incorporated (LEXG)
Target (Total: 3)
  • Mylan Laboratories Inc. (MYL)
  • DRAXIS Health Inc. (USA) (DRAX)
  • Patheon Inc.
Buyer (Total: 6)
  • Pfizer Inc. (PFE)
  • Amgen, Inc. (AMGN)
  • Chiron Corporation (CHIR)
  • Human Genome Sciences (HGSI)
Target (Total: 7)
  • Mylan Laboratories Inc. (MYL)
  • sanofi-aventis (ADR) (SNY)
  • Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
  • Schering AG (ADR) (SHR)

Key Financial Summary:

Metric Buyer Target
Number of Employees 440 72
Revenue Per Employee 69,244.2 53,346.1
Total Revenue 7.6 0.9
Total Expenses 50.2 6.8
Other Revenue 0.0 0.0
Cost of Revenue 0.0 0.0
SG&A Expense 6.3 2.9
Research & Development 36.3 3.8
Other Operating Expense 0.0 0.0
Operating Income -42.6 -5.8
Unusual Income 6.7 0.0
Gross Margin % 100 99.03
Metric Buyer Target
Operating Margin % -561.06 -625.56
Total Assets 650.3 67.0
Return on Equity % -226.53 -34.95
Cash+ ST Inv. Per Share 3.67 2.54
Total Debt 449.9 0.0
Curr Portion of LTD/Cap Lease 0.0 0.0
Total Debt to Equity 587.51 0
LT Debt to Capital 85.45 0
Fwd P/E -13.07 -14.36
Fwd P/Rev 50.88 132.99
Book Value 26.7 60.4

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Outsourced Services > Drug Discovery Services > Lead Discovery/Validation/Optimization > Lead Biologics > Antibodies

Target

Focused (): *Healthcare > Outsourced Services > Drug Delivery Technology > Oral Delivery

Business Description

Buyer

Abgenix, Inc. (Abgenix) is a biopharmaceutical company that is focused on the discovery, development and manufacture of human therapeutic antibodies for the treatment of range of disease conditions, including cancer, inflammation and metabolic disease. The Company has its XenoMouse technology, a technology using genetically modified mice, to generate human antibodies. Abgenix also owns a technology that enables the rapid identification of antibodies with desired function and characteristics, known as SLAM technology. In its XenoMax technology, Abgenix uses SLAM technology to select and isolate antibodies with particular function and characteristics from antibody-producing cells generated by XenoMouse animals.

Target

Penwest Pharmaceuticals Co. develops pharmaceutical products based on oral drug delivery technologies. The Company is focusing its development efforts principally on products that address diseases of the central nervous system. The two most advanced products in its drug development pipeline are Oxymorphone ER, an extended release formulation of oxymorphone, a narcotic analgesic being developed for twice-a-day dosing in patients with moderate to severe pain requiring continuous, around-the-clock opioid therapy for an extended period of time, and PW2101, a beta blocker intended for the treatment of hypertension and angina. The Company is also developing several additional product candidates in areas, such as edema, epilepsy, schizophrenia and depression. On February 27, 2003, it sold substantially all of the assets used in its excipient business to subsidiaries and affiliates of Josef Rettenmaier Holding GmbH & Co. KG.

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.
  
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.
  
Outsourced Services
Drug Delivery Technology
The Drug Delivery Technology Subsector includes companies that develop novel delivery methods for therapeutics.
  
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  
Heart Disorders  
Angina  
Calcium Channel Blocking Agents
Therapeutics that treat chest pains by preventing the entry of calcium into heart muscle cells.

Target Products:

  • Procardia XL (Nifedipine)
  
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.

Target Products:

  • PW2132
  
Vascular Disorders  
Hypertension  
Beta Adrenergic Receptor Blocking Agents (Beta Blockers)
Therapeutics that treat high blood pressure by blocking the beta adrenergic receptors of the heart muscle.

Target Products:

  • PW2101
  
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.

Target Products:

  • Procardia XL (Nifedipine)
  
Endocrinology/Metabolism  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of endocrinology disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • ABX-PTH (ABX10241)
  
Neurology  
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:

  • PW4102
  • PW4110
  • PW4112
  • PW4123
  
Oncology  
Digestive System  
Colon Cancer/Colorectal Cancer  
Metastatic  
Monoclonal Antibodies
Therapeutics that treat colorectal cancer by binding to specific structures on the surface of the tumor and eliciting a reaction, which results in tumor degeneration.

Buyer Products:

  • Panitumumab (ABX-EGF)
  
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:

  • Panitumumab (ABX-EGF)
  • ABX-MA1 (MUC18 Targeting Antibody)
  
Pain Management  
Narcotics  
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.

Target Products:

  • EN3202 (Oxymorphone Hydrochloride Extended Release)
  
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:

  • PW4142
  
Respiratory System  
Lower Respiratory Tract Disorders (Lung Disorders)  
Asthma  
Acute Treatments  
Bronchodilators  
Beta Adrenergic Receptor Agonists
Therapeutics that cause dilation of the lung passages by supporting the actions of the adrenergic transmitters like epinephrine and norepinephrine.

Target Products:

  • PW3101 (Albuterol)
  
Outsourced Services
Drug Delivery Technology  
Oral Delivery  
Hydrogel Based/Polymer Coated
Drug Delivery Technologies used to deliver drugs in a jelly like base which are enclosed using a polymer matrix.

Target Products:

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

Target Products:

  • Gastroretentive Drug Delivery System
  
Drug Discovery Services  
Lead Discovery/Validation/Optimization  
Lead Biologics  
Antibodies
Biological lead compounds which have a specific amino acid sequence that only interacts with specific substances to cause an immunological response.

Buyer Products:

  • Catalytic Antibody (CAb) Technology
  • XenoMouse/XenoMax
  

- 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 176,242.819 16.98 16.04 3.49 3.32 6.86
Buyer
  Pfizer Inc. n/a 183,180.689 22.76 12.54 3.57 3.58 13.02
Johnson & Johnson n/a 176,242.819 16.98 16.04 3.49 3.32 6.86
GlaxoSmithKline plc (ADR) n/a 152,153.571 18.73 18.09 4.05 4.06 26.96
Novartis AG (ADR) n/a 115,193.225 22.11 17.99 3.54 3.27 3.49
Genentech, Inc. n/a 89,058.664 69.71 45.11 13.43 10.18 15.96
Wyeth n/a 65,323.495 17.80 16.11 3.48 3.24 8.29
Bristol Myers Squibb Co. n/a 48,325.722 16.11 20.79 2.52 2.56 10.83
Kirin Brewery Company, Ltd. (ADR) n/a 12,948.776 29.95 29.93 0.93 n/a 1.82
Shire plc (ADR) n/a 7,745.341 n/a 30.49 4.84 4.51 11.19
ImClone Systems Incorporated n/a 2,837.531 30.65 17.84 7.40 4.49 11.28
OSI Pharmaceuticals, Inc. n/a 1,824.150 n/a -114.82 10.47 3.57 149.07
Medarex, Inc. n/a 1,480.167 n/a -8.18 28.76 32.36 9.21
Crucell N.V. (ADR) n/a 1,163.652 n/a -39.21 25.26 23.15 7.04
Target
  Johnson & Johnson n/a 176,242.819 16.98 16.04 3.49 3.32 6.86
Elan Corporation, plc (ADR) n/a 6,192.195 n/a -18.22 12.63 10.27 -9.55
Biovail Corporation (USA) n/a 3,883.036 16.40 10.67 4.15 3.82 18.51
Andrx Corporation n/a 1,747.893 27.96 24.95 1.68 1.55 2.29
K-V Pharmaceutical Company n/a 1,190.747 1,231.98 n/a 3.39 n/a 5.34
Ligand Pharmaceuticals n/a 952.587 n/a -23.98 5.39 5.45 -3.89
SkyePharma PLC (ADR) n/a 413.159 n/a n/a 3.41 n/a -3.73
Nastech Pharmaceutical n/a 377.121 n/a -41.56 50.63 7.50 6.79
SCOLR Pharma Inc. n/a 208.800 n/a n/a 384.29 n/a 12.28
Elite Pharmaceuticals, Inc. n/a 47.953 n/a n/a 86.74 n/a 16.53
Purdue Pharma L.P. 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
  EMC Corporation n/a 32,246.604 28.73 21.43 3.34 2.86 4.23
Digital Realty Trust, Inc. n/a 770.827 107.22 16.58 3.69 2.83 1.99
Lexicon Genetics Incorporated n/a 357.659 n/a -5.50 4.73 4.37 6.02
Target
  Mylan Laboratories Inc. n/a 4,925.454 33.45 25.04 3.94 4.00 8.99
DRAXIS Health Inc. (USA) n/a 188.394 23.95 17.84 2.37 1.95 2.34
Patheon Inc. 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
Buyer
  Pfizer Inc. n/a 183,180.689 22.76 12.54 3.57 3.58 13.02
Amgen, Inc. n/a 85,783.962 23.58 20.06 6.90 6.01 13.80
Chiron Corporation n/a 9,031.647 48.85 24.59 4.70 4.12 5.58
Human Genome Sciences n/a 1,428.351 n/a -5.62 74.71 62.60 3.43
Progenics Pharmaceuticals, Inc. n/a 674.188 n/a -15.88 71.07 36.20 5.98
CuraGen Corporation n/a 278.815 n/a -3.80 11.85 7.57 6.33
Target
  Mylan Laboratories Inc. 94.00% 4,925.454 33.45 25.04 3.94 4.00 8.99
sanofi-aventis (ADR) n/a 126,704.927 n/a 13.70 4.35 3.65 n/a
Teva Pharmaceutical Industries Ltd (ADR) n/a 26,629.468 24.78 21.06 5.07 3.31 9.08
Schering AG (ADR) n/a 19,742.900 26.54 24.51 3.09 n/a 6.39
Endo Pharmaceuticals n/a 4,361.204 21.51 18.47 5.32 4.92 7.74
E Merck n/a n/a n/a n/a n/a n/a n/a
Ranbaxy Laboratories Ltd. 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
  Pfizer Inc. n/a 183,180.689 22.76 12.54 3.57 3.58 13.02
Buyer
  Pfizer Inc. n/a 183,180.689 22.76 12.54 3.57 3.58 13.02
Genentech, Inc. n/a 89,058.664 69.71 45.11 13.43 10.18 15.96
Amgen, Inc. n/a 85,783.962 23.58 20.06 6.90 6.01 13.80
AstraZeneca PLC (ADR) n/a 79,202.861 17.10 17.60 3.31 3.39 7.28
Genzyme Corporation n/a 17,463.118 38.96 24.59 6.39 5.45 8.43
Chiron Corporation n/a 9,031.647 48.85 24.59 4.70 4.12 5.58
MDS Inc. (USA) n/a 2,574.189 53.03 n/a 2.00 n/a 3.25
Medarex, Inc. n/a 1,480.167 n/a -8.18 28.76 32.36 9.21
Human Genome Sciences n/a 1,428.351 n/a -5.62 74.71 62.60 3.43
Progenics Pharmaceuticals, Inc. n/a 674.188 n/a -15.88 71.07 36.20 5.98
Cell Genesys, Inc. n/a 364.257 n/a -4.08 79.46 23.19 3.62
Dendreon Corporation n/a 335.268 n/a -3.42 1,592.29 624.92 1.99
CuraGen Corporation n/a 278.815 n/a -3.80 11.85 7.57 6.33
Target
  Pfizer Inc. n/a 183,180.689 22.76 12.54 3.57 3.58 13.02
sanofi-aventis (ADR) n/a 126,704.927 n/a 13.70 4.35 3.65 n/a
Teva Pharmaceutical Industries Ltd (ADR) n/a 26,629.468 24.78 21.06 5.07 3.31 9.08
Schering AG (ADR) n/a 19,742.900 26.54 24.51 3.09 n/a 6.39
Mylan Laboratories Inc. n/a 4,925.454 33.45 25.04 3.94 4.00 8.99
Endo Pharmaceuticals n/a 4,361.204 21.51 18.47 5.32 4.92 7.74
First Horizon Pharmaceutical Corp. n/a 885.057 21.45 21.29 4.09 3.18 36.37
DRAXIS Health Inc. (USA) n/a 188.394 23.95 17.84 2.37 1.95 2.34
Patheon Inc. n/a n/a n/a n/a n/a n/a n/a
E Merck n/a n/a n/a n/a n/a n/a n/a
Ranbaxy Laboratories Ltd. 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 18.3 6.2 24.6
Other Revenue 0.0 0.0 0.0
Total Revenue 18.3 6.2 24.6
Cost of Revenue 0.0 0.0 0.0
SG&A Expense 22.3 13.2 35.5
Depreciation & Amortization 4.6 0.0 4.6
Research & Development 137.0 17.8 154.8
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 58.8 0.0 58.8
Total Expenses 222.7 31.1 253.8
Operating Income -204.4 -24.9 -229.2
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -2.6 2.0 -0.6
Other, Net 0.0 0.0 0.0
Income Before Taxes -207.0 -22.9 -229.9
Income Taxes 0.0 0.0 0.0
Income After Taxes -207.0 -22.9 -229.9
Net Income - Excl. Xord. Items -207.0 -22.9 -229.9
Net Income - Incl. Xord. Items -207.0 -22.9 -229.9
Income Avail. to Common -207.0 -22.9 -229.9
Share Items
Basic Avg. Shares Outstanding 90.7 21.8 112.5
Basic EPS - Excl. Xord. Items -2.30 -1.06 -2.04
Basic EPS - Incl. Xord. Items -2.30 -1.06 -2.04
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 90.7 21.8 112.5
F.D. EPS - Excl. Xord. Items -2.30 -1.06 -2.04
F.D. EPS - Incl. Xord. Items -2.30 -1.06 -2.04
Balance Sheet
Assets
Cash and Equivalents 31.4 15.9 47.4
ST Investments 301.4 39.4 340.8
Accounts Receivable 7.9 0.9 8.8
Inventory 0.0 0.1 0.1
Prepayments and Advances 12.8 1.1 13.9
Other Current Assets 0.0 0.0 0.0
Current Assets 353.5 57.5 411.0
Accum D&A 0.0 0.0 0.0
PPE, Net 197.6 3.0 200.6
Goodwill & Intangibles 65.2 3.4 68.6
Other Assets 0.0 0.0 0.0
Other LT Assets 33.9 3.2 37.1
Total Assets 650.3 67.0 717.3
Liabilities
Accounts Payable 6.4 1.1 7.5
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 31.8 2.2 34.0
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 2.6 0.3 2.9
Current Liab. 40.8 3.6 44.3
LT Debt 449.9 0.0 449.9
Total LT Debt 449.9 0.0 449.9
Other LT Liab. 83.0 3.0 86.1
Total Liabilities 573.7 6.6 580.3
Shareholders Equity
Redeemable Preferred 49.9 0.0 49.9
Common Stock 0.0 0.0 0.0
Additional Paid in Capital 990.0 201.7 1,191.7
Retained Earnings -959.2 -141.1 -1,100.3
Other Equity -4.1 -0.2 -4.3
Total Equity 76.6 60.4 137.0
Total Liab. & Equity 650.3 67.0 717.3
Shares Outstanding 91.3 21.9 113.2
Cash Flow
Operating Cash Flow
CF Net Income -207.0 -22.9 -229.9
CF Depreciation 26.0 0.0 26.0
CF Amortization 4.6 0.0 4.6
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 33.7 0.0 33.7
Change in Working Capital 55.1 2.8 57.9
Total Cash From Operating Activities -87.6 -20.1 -107.7
Investing Cash Flow
Capital Expenditures -6.8 -0.8 -7.6
Other Investing Cash Flows -21.2 21.0 -0.2
Total Cash From Investing Activities -28.0 20.2 -7.8
Financing Cash Flow
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 11.6 1.5 13.1
Purchase and Retirement of Debt -13.5 0.0 -13.5
Other Financing Cash Flow 0.0 0.0 0.0
Total Cash From Financing Activities -1.8 1.5 -0.4
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -117.5 1.7 -115.8
Cash Taxes Paid 0.0 0.0 0.0
Cash Interest Paid 8.1 0.0 8.1