Summary

Other Scenarios:

Buyer: Abgenix, Inc. (ABGX) Last Price: 22.50 Market Cap.: 2.07B
Target: DepoMed, Inc. (DEPO) Last Price: 6.53 Market Cap.: 267.65M

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: 7)
  • Gastric Retention System
Buyer
  • ABX-PTH (ABX10241)
  • Panitumumab (ABX-EGF)
  • ABX-MA1 (MUC18 Targeting Antibody)
Target
  • Furosemide GR
  • Glumetza (Metformin GR)
  • Metformin/Sulfonylurea GR
  • Proquin XR (Ciprofloxacin Extended-Release)

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: 0)

n/a
Buyer (Total: 6)
  • Pfizer Inc. (PFE)
  • Amgen, Inc. (AMGN)
  • Chiron Corporation (CHIR)
  • Human Genome Sciences (HGSI)
Target (Total: 2)
  • ActivBiotics, Inc.
  • Biovail Corporation (USA) (BVF)

Key Financial Summary:

Metric Buyer Target
Number of Employees 440 90
Revenue Per Employee 69,244.2 141,008.6
Total Revenue 7.6 3.2
Total Expenses 50.2 7.7
Other Revenue 0.0 0.0
Cost of Revenue 0.0 0.9
SG&A Expense 6.3 3.2
Research & Development 36.3 3.6
Other Operating Expense 0.0 0.0
Operating Income -42.6 -4.5
Unusual Income 6.7 0.0
Gross Margin % 100 71.27
Metric Buyer Target
Operating Margin % -561.06 -143.74
Total Assets 650.3 66.4
Return on Equity % -226.53 -231.56
Cash+ ST Inv. Per Share 3.67 1.48
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 -8.56
Fwd P/Rev 50.88 113.35
Book Value 26.7 -5.3

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 > Polymer Coated

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

Depomed, Inc. is a specialty pharmaceutical company engaged in the development of pharmaceutical products, based on its oral drug delivery technologies. During the year ended December 31, 2005, the United States Food and Drug Administration (FDA) approved two products developed by the Company, ProQuin XR, a once-daily formulation of the antibiotic drug ciprofloxacin for uncomplicated urinary tract infections, and Glumetza, a once-daily metformin product for Type II diabetes. Depomed has also developed Gabapentin GR, an extended release form of gabapentin. In addition, the Company is applying its AcuForm technology to other compounds in an effort to enhance the safety, efficacy and/or dosing compliance of the innovator product.

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.
Infectious Diseases
The Infectious Diseases Subsector includes therapeutics that treat diseases caused by the invasion and reproduction of microorganisms in the body.
  
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.
  
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  
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:

  • Furosemide GR
  
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.

Target Products:

  • Glumetza (Metformin GR)
  
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)
  
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.

Target Products:

  • Metformin/Sulfonylurea GR
  
Infectious Diseases  
Bacterial  
Antibacterial Agents  
Narrow Spectrum  
Urology  
Urinary Tract Infections (UTI)  
Antibacterial Agents (Antibiotics)  
Quinolones/Fluoroquinolones
Therapeutics that treat bacterial infections of the urethra, urinary bladder, ureters, and kidneys by promoting breakage of bacterial DNA strands.

Target Products:

  • Proquin XR (Ciprofloxacin Extended-Release)
  
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:

  • Gabapentin GR
  
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)
  
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.

Target Products:

  • NeuGene Antisense Compound
  
Pain Management  
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:

  • Gabapentin GR
  
Outsourced Services
Drug Delivery Technology  
Oral Delivery  
Polymer Coated
Drug Delivery Technologies used to deliver drugs in a polymer based matrix to hold/enclose the drug.

Target Products:

  • Gastric Retention 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
  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
Bristol Myers Squibb Co. n/a 48,325.722 16.11 20.79 2.52 2.56 10.83
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
Target
  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
Bristol Myers Squibb Co. n/a 48,325.722 16.11 20.79 2.52 2.56 10.83
Bayer AG (ADR) n/a 29,250.191 15.45 13.89 0.90 0.94 7.26
Teva Pharmaceutical Industries Ltd (ADR) n/a 26,629.468 24.78 21.06 5.07 3.31 9.08
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
KOS Pharmaceuticals, Inc. n/a 2,242.497 18.42 24.94 2.98 2.55 5.01
Alpharma Inc. n/a 1,456.495 10.79 19.27 2.63 1.02 2.33
Par Pharmaceutical Companies, Inc n/a 986.682 n/a 20.31 2.28 1.59 2.95
Flamel Technologies S.A. (ADR) n/a 500.214 n/a -52.87 21.20 8.14 n/a
XenoPort, Inc. n/a 450.382 n/a -7.75 94.75 67.22 6.86
SkyePharma PLC (ADR) n/a 413.159 n/a n/a 3.41 n/a -3.73
Access Pharmaceuticals n/a 4.584 n/a n/a 5.00 n/a -0.27
Ranbaxy Laboratories Ltd. n/a n/a n/a n/a n/a n/a n/a
INTEC PHARMA 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
  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

- 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
  ActivBiotics, Inc. 14.00% n/a n/a n/a n/a n/a n/a
Biovail Corporation (USA) n/a 3,883.036 16.40 10.67 4.15 3.82 18.51

- 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
  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
ImmunoGen, Inc. n/a 178.581 n/a -9.93 5.58 5.94 2.23
Japan Tobacco, Inc. n/a n/a n/a n/a n/a n/a n/a
Microscience Ltd. n/a n/a n/a n/a n/a n/a n/a
Sosei Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
Chugai Pharmaceutical Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
Target
  Bristol Myers Squibb Co. n/a 48,325.722 16.11 20.79 2.52 2.56 10.83
Biovail Corporation (USA) n/a 3,883.036 16.40 10.67 4.15 3.82 18.51
New River Pharmaceuticals, Inc. n/a 1,214.060 n/a -42.22 n/a 47.54 -187.30
AVI BioPharma, Inc. n/a 397.966 n/a -25.43 83.19 35.51 7.72
LG Group n/a n/a n/a n/a n/a n/a n/a
Madaus AG n/a n/a n/a n/a n/a n/a n/a
Esprit Pharma Holding Company, Inc. 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 4.4 22.8
Other Revenue 0.0 0.0 0.0
Total Revenue 18.3 4.4 22.8
Cost of Revenue 0.0 0.9 0.9
SG&A Expense 22.3 11.6 33.9
Depreciation & Amortization 4.6 0.0 4.6
Research & Development 137.0 18.4 155.4
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 58.8 -1.1 57.8
Total Expenses 222.7 29.9 252.6
Operating Income -204.4 -25.5 -229.8
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -2.6 -0.5 -3.0
Other, Net 0.0 1.4 1.4
Income Before Taxes -207.0 -24.5 -231.4
Income Taxes 0.0 0.0 0.0
Income After Taxes -207.0 -24.5 -231.4
Net Income - Excl. Xord. Items -207.0 -24.5 -231.4
Net Income - Incl. Xord. Items -207.0 -24.5 -231.4
Preferred Dividends 0.0 -0.8 -0.8
Income Avail. to Common -207.0 -25.3 -232.3
Share Items
Basic Avg. Shares Outstanding 90.7 39.8 130.5
Basic EPS - Excl. Xord. Items -2.30 -0.64 -1.77
Basic EPS - Incl. Xord. Items -2.30 -0.64 -1.77
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 90.7 39.8 130.5
F.D. EPS - Excl. Xord. Items -2.30 -0.64 -1.77
F.D. EPS - Incl. Xord. Items -2.30 -0.64 -1.77
Balance Sheet
Assets
Cash and Equivalents 31.4 7.6 39.0
ST Investments 301.4 51.5 352.9
Accounts Receivable 7.9 2.0 9.8
Inventory 0.0 0.9 0.9
Prepayments and Advances 12.8 1.1 13.9
Other Current Assets 0.0 0.0 0.0
Current Assets 353.5 63.0 416.5
Accum D&A 0.0 0.0 0.0
PPE, Net 197.6 3.1 200.7
Goodwill & Intangibles 65.2 0.0 65.2
Other Assets 0.0 0.0 0.0
Other LT Assets 33.9 0.2 34.2
Total Assets 650.3 66.4 716.7
Liabilities
Accounts Payable 6.4 1.6 8.0
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 31.8 2.8 34.5
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 2.6 3.7 6.3
Current Liab. 40.8 8.1 48.8
LT Debt 449.9 0.0 449.9
Total LT Debt 449.9 0.0 449.9
Other LT Liab. 83.0 51.5 134.6
Total Liabilities 573.7 59.6 633.3
Shareholders Equity
Redeemable Preferred 49.9 0.0 49.9
Preferred Stock 0.0 12.0 12.0
Common Stock 0.0 139.6 139.6
Additional Paid in Capital 990.0 0.0 990.0
Retained Earnings -959.2 -144.5 -1,103.7
Other Equity -4.1 -0.4 -4.5
Total Equity 76.6 6.8 83.3
Total Liab. & Equity 650.3 66.4 716.7
Shares Outstanding 91.3 40.7 132.0
Cash Flow
Operating Cash Flow
CF Net Income -207.0 -17.7 -224.6
CF Depreciation 26.0 0.8 26.7
CF Amortization 4.6 0.0 4.6
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 33.7 -0.6 33.1
Change in Working Capital 55.1 52.8 107.8
Total Cash From Operating Activities -87.6 35.3 -52.3
Investing Cash Flow
Capital Expenditures -6.8 -0.6 -7.5
Other Investing Cash Flows -21.2 -29.1 -50.2
Total Cash From Investing Activities -28.0 -29.7 -57.7
Financing Cash Flow
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 11.6 1.3 12.9
Purchase and Retirement of Debt -13.5 -9.7 -23.2
Other Financing Cash Flow 0.0 0.0 0.0
Total Cash From Financing Activities -1.8 -8.4 -10.2
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -117.5 -2.8 -120.2
Cash Interest Paid 8.1 0.5 8.5