Summary

Other Scenarios:

Buyer: XenoPort, Inc. (XNPT) Last Price: 41.43 Market Cap.: 1.04B
Target: PDL BioPharma Inc. (PDLI) Last Price: 8.69 Market Cap.: 1.04B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 850
Biopharmaceuticals 370
Outsourced Services   48

- 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)
  • XP19986 (R-Baclofen Prodrug)
  • XP20925 (Propofol Prodrug)
  • Solzira (Gabapentin Prodrug)
  • XP21279 (Levodopa Prodrug)
Target (Total: 8)
  • Nuvion (Visilizumab)
  • Daclizumab (Monoclonal Antibody)
  • Therapeutic Antibody Candidates
  • PDL192 (Humanized Monoclonal Antibody)
Buyer

n/a
Target
  • Humanized Antibody Technology

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 9)
  • Gilead Sciences, Inc. (GILD)
  • Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
  • Cardinal Health, Inc. (CAH)
  • Patheon, Inc. (PTI:CA)
Target (Total: 3)
  • Seattle Genetics, Inc. (SGEN)
  • ARIUS Research, Inc. (ARI:CA)
  • Highland Distressed Opportunities, Inc (HCD)
Buyer (Total: 3)
  • GlaxoSmithKline plc (ADR) (GSK)
  • Xanodyne Pharmaceuticals, Inc.
  • Astellas Pharma Inc. (ALPMF)
Target (Total: 12)
  • Genentech, Inc. (DNA)
  • AstraZeneca plc (ADR) (AZN)
  • Roche Holding Ltd. (ADR) (RHHBY)
  • Wyeth (WYE)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 181 887
Revenue Per Employee 257,082.1 504,271.4
Total Revenue 11.5 111.9
Total Expenses 25.0 60.2
Other Revenue 0.0 0.0
Cost of Revenue 0.0 0.0
SG&A Expense 6.4 16.6
Research & Development 18.6 40.4
Other Operating Expense 0.0 0.0
Operating Income -13.4 51.7
Unusual Income 0.0 3.3
LT Debt to Capital 0 95.2
Fwd P/E -24.43 10.24
Fwd P/Rev 19.56 3.26
Book Value 114.4 27.1
Curr Portion of LTD/Cap Lease 0.1 0.8

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Biopharmaceuticals > Neurology

Target

Focused (): Healthcare > Biopharmaceuticals

Business Description

Buyer

XenoPort, Inc. is a biopharmaceutical company focused on developing a portfolio of internally discovered product candidates that utilize the body?s natural nutrient transporter mechanisms. The Company focuses its development and commercialization efforts on treatments of central nervous system (CNS), disorders. Its product candidate, XP13512, is being evaluated for the treatment of restless legs syndrome (RLS), in a Phase III clinical program in the United States and has also completed a Phase IIa clinical trial for the management of post-herpetic neuralgia (PHN), in the United States.

Target

PDL BioPharma Inc. is a biopharmaceutical company focused on the discovery and development of novel antibodies in oncology and immunologic diseases. It receives royalties and other revenues through licensing agreements with various biotechnology and pharmaceutical companies based on its antibody humanization technology platform. These licensing agreements have contributed to the development by the Company?s licensees of nine marketed products. The Company has several investigational compounds in clinical development for severe or life-threatening diseases, two of which it is developing in collaboration with Biogen Idec MA, Inc. (Biogen Idec). Its products include Daclizumab, Volociximab, HuLuc63, PDL192 and Nuvion. In March 2008, the Company closed the sale of the Cardiovascular Assets, which included Cardene, to EKR Therapeutics, Inc (EKR). However, the Company continues to perform development work for new formulations and presentations of Cardene pursuant to an agreement with EKR.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 100 100
Operating Margin % -9.27 16.92
Quick Ratio 4.63 7.43
Current Ratio 4.77 7.86
Coverage Ratio -0.87 0.09
Total Assets 169.0 654.1
Return on Equity % -1.45 181.72
Return on Assets % -0.98 7.53
Cash+ ST Inv. Per Share 5.98 3.12
Total Debt 0.1 537.8
Total Debt to Equity % 0.06 1,984.63
Total Debt to Tangible Equity % 0.06 2,850.51
Debt to Asset % 0.04 82.22

Product Summary

Sector Buyer Target
Healthcare
Biopharmaceuticals
Digestive System
The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive system.
Immunology
The Immunology Subsector includes therapeutics that treat disorders affecting the immune system.
  
Neurology
The Neurology Subsector includes therapeutics that treat disorders of the central nervous system, including the brain, spinal cord, and nerves.
Obstetrics/Gynecology
The Obstetrics/Gynecology Subsector includes therapeutics that treat female genital disorders, pregnancy, and childbirth.
  
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.
  
Transplantation
The Transplantation Subsectors includes therapeutics that treat rejection and infection associated with tissue transplantation into the human body.
  
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
Digestive System
Gastrointestinal Tract Disorders  
Intestinal Disorders  
Inflammatory Bowel Disease (IBD)  
Ulcerative Colitis  
Monoclonal Antibodies
Therapeutics that treat ulcerative colitis through modulation of immune pathways implicated in the progression of the disease.

Target Products:

  • Nuvion (Visilizumab)
  
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.

Buyer Products:

  • XP19986 (R-Baclofen Prodrug)

Target Products:

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

Buyer Products:

  • XP20925 (Propofol Prodrug)
 
Immunology  
Autoimmune Disorders  
Inflammatory Bowel Disease (IBD)  
Ulcerative Colitis  
Monoclonal Antibodies
Therapeutics that treat ulcerative colitis through modulation of immune pathways implicated in the progression of the disease.

Target Products:

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

Target Products:

  • Nuvion (Visilizumab)
  • Daclizumab (Monoclonal Antibody)
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of immune disorders in very early stages of research where no human subject is involved.

Target Products:

  • Therapeutic Antibody Candidates
  
Neurology
Neuromuscular Disorders  
Restless Leg Syndrome  
Gamma-Aminobutyric Acid (GABA) Reuptake Inhibitors  
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.

Buyer Products:

  • XP21279 (Levodopa Prodrug)
  • Solzira (Gabapentin Prodrug)
  • XP19986 (R-Baclofen Prodrug)

Target Products:

  • Daclizumab (Monoclonal Antibody)
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:

  • XP20925 (Propofol Prodrug)
 
Obstetrics/Gynecology  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of female reproductive disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • XP21510 (Branexamic Acid Prodrug)
  
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.

Target Products:

  • PDL192 (Humanized Monoclonal Antibody)
  • Elotuzumab/Previously HuLuc63 (Anti-CS1 Monoclonal Antibody)
  • Volociximab/M200 (Chimeric Monoclonal 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:

  • Therapeutic Antibody Candidates
  
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.

Buyer Products:

  • Solzira (Gabapentin Prodrug)
  
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:

  • Daclizumab (Monoclonal Antibody)
  
Transplantation  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the management of rejection and infection in early stages of clinical research where human subject is involved.

Target Products:

  • Daclizumab (Monoclonal Antibody)
  
Renal (Kidney)  
Rejection Prophylaxis  
Monoclonal Antibodies
Protein-based therapeutics that target specific substances like proteins.

Target Products:

  • Zenapax (Daclizumab)
  
Outsourced Services  
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.

Target Products:

  • Humanized Antibody Technology
  

- 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
  GlaxoSmithKline plc (ADR) n/a 101,615.952 11.65 10.20 2.51 2.31 49.74
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
Buyer
  Novartis AG (ADR) n/a 115,292.504 9.35 12.37 2.80 2.61 3.84
Pfizer Inc. n/a 113,990.205 12.61 7.16 2.33 2.34 4.56
GlaxoSmithKline plc (ADR) n/a 101,615.952 11.65 10.20 2.51 2.31 49.74
Abbott Laboratories n/a 85,494.194 18.80 16.68 2.97 2.89 n/a
AstraZeneca plc (ADR) n/a 57,622.426 10.05 8.16 1.86 1.78 n/a
Wyeth n/a 43,843.244 9.78 8.96 1.90 1.80 2.88
Eli Lilly & Co. n/a 36,609.790 9.62 8.73 1.86 1.91 2.95
Teva Pharmaceutical Industries Ltd (ADR) n/a 32,739.840 18.38 14.52 3.17 2.86 7.29
Alpharma Inc. n/a 1,770.003 14.15 171.50 2.91 2.69 3.74
Altana AG (ADR) n/a 1,475.457 8.52 n/a 0.71 n/a 1.55
Acorda Therapeutics Inc. n/a 682.244 n/a -8.80 15.31 13.73 7.21
DepoMed, Inc. n/a 106.337 1.65 -4.96 1.52 4.55 2.47
Avigen, Inc. n/a 97.047 n/a -2.82 n/a 3.50 1.72
IVAX Diagnostics, Inc. n/a 16.590 n/a n/a 0.81 n/a 1.00
Target
  GlaxoSmithKline plc (ADR) n/a 101,615.952 11.65 10.20 2.51 2.31 49.74
Genentech, Inc. n/a 88,178.442 28.21 25.76 6.95 6.49 n/a
Baxter International Inc. n/a 37,421.040 19.46 17.58 3.06 2.97 5.30
Hospira, Inc. n/a 4,718.140 17.48 12.05 1.32 1.30 20.44
Medarex inc. n/a 729.119 n/a -19.27 13.28 15.32 2.25
Sangamo Biosciences, Inc. n/a 286.313 n/a -9.80 26.76 20.88 4.89
Dyax Corp. n/a 229.246 n/a -3.45 8.40 9.01 n/a
Nuvelo, Inc. n/a 19.823 n/a -0.49 1.30 1.16 0.39
Boehringer Ingelheim GmbH 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
  Gilead Sciences, Inc. n/a 39,583.941 21.46 20.70 7.91 7.23 9.50
Teva Pharmaceutical Industries Ltd (ADR) n/a 32,739.840 18.38 14.52 3.17 2.86 7.29
Cardinal Health, Inc. n/a 14,078.802 10.82 10.10 0.15 0.14 9.25
Patheon, Inc. n/a 218.706 n/a n/a 0.31 n/a 1.54
UPM Pharmaceuticals, Inc. n/a n/a n/a n/a n/a n/a n/a
Heumann GmbH n/a n/a n/a n/a n/a n/a n/a
Xcelience, Llc n/a n/a n/a n/a n/a n/a n/a
Lonza Group Ltd. n/a n/a n/a n/a n/a n/a n/a
Ajinomoto Co., Inc. n/a n/a n/a n/a n/a n/a n/a
Target
  Seattle Genetics, Inc. n/a 705.647 n/a -8.55 23.87 19.75 5.69
ARIUS Research, Inc. n/a 115.719 n/a n/a 48.21 n/a 21.37
Highland Distressed Opportunities, Inc n/a 35.788 n/a 2.05 1.04 2.03 0.28

- 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 101,615.952 11.65 10.20 2.51 2.31 49.74
Xanodyne Pharmaceuticals, Inc. n/a n/a n/a n/a n/a n/a n/a
Astellas Pharma Inc. n/a n/a n/a n/a n/a n/a n/a
Target
  Genentech, Inc. 68.00% 88,178.442 28.21 25.76 6.95 6.49 n/a
AstraZeneca plc (ADR) 14.00% 57,622.426 10.05 8.16 1.86 1.78 n/a
Roche Holding Ltd. (ADR) n/a 132,834.623 15.22 13.65 3.25 2.91 5.56
Wyeth n/a 43,843.244 9.78 8.96 1.90 1.80 2.88
Bristol Myers Squibb Co. n/a 34,722.464 15.83 10.40 1.68 1.64 7.46
Cardinal Health, Inc. n/a 14,078.802 10.82 10.10 0.15 0.14 9.25
Biogen Idec Inc. n/a 13,192.067 19.14 12.57 3.65 3.22 6.48
McKesson Corporation n/a 12,369.112 12.49 10.83 0.12 0.11 4.89
AmerisourceBergen Corp. n/a 4,915.476 22.02 10.75 0.07 0.07 n/a
Elan Corporation, plc (ADR) n/a 4,267.090 n/a -18.49 4.99 3.88 n/a
Seattle Genetics, Inc. n/a 705.647 n/a -8.55 23.87 19.75 5.69
Progenics Pharmaceuticals, Inc. n/a 317.333 n/a -9.79 4.18 3.54 2.29

- 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 14,078.802 10.82 10.10 0.15 0.14 9.25
Buyer
  GlaxoSmithKline plc (ADR) n/a 101,615.952 11.65 10.20 2.51 2.31 49.74
Gilead Sciences, Inc. n/a 39,583.941 21.46 20.70 7.91 7.23 9.50
Teva Pharmaceutical Industries Ltd (ADR) n/a 32,739.840 18.38 14.52 3.17 2.86 7.29
Cardinal Health, Inc. n/a 14,078.802 10.82 10.10 0.15 0.14 9.25
Patheon, Inc. n/a 218.706 n/a n/a 0.31 n/a 1.54
Xanodyne Pharmaceuticals, Inc. n/a n/a n/a n/a n/a n/a n/a
UPM Pharmaceuticals, Inc. n/a n/a n/a n/a n/a n/a n/a
Astellas Pharma Inc. n/a n/a n/a n/a n/a n/a n/a
Heumann GmbH n/a n/a n/a n/a n/a n/a n/a
Xcelience, Llc n/a n/a n/a n/a n/a n/a n/a
Lonza Group Ltd. n/a n/a n/a n/a n/a n/a n/a
Target
  Roche Holding Ltd. (ADR) n/a 132,834.623 15.22 13.65 3.25 2.91 5.56
Genentech, Inc. n/a 88,178.442 28.21 25.76 6.95 6.49 n/a
Wyeth n/a 43,843.244 9.78 8.96 1.90 1.80 2.88
Eli Lilly & Co. n/a 36,609.790 9.62 8.73 1.86 1.91 2.95
Bristol Myers Squibb Co. n/a 34,722.464 15.83 10.40 1.68 1.64 7.46
Cardinal Health, Inc. n/a 14,078.802 10.82 10.10 0.15 0.14 9.25
Biogen Idec Inc. n/a 13,192.067 19.14 12.57 3.65 3.22 6.48
Elan Corporation, plc (ADR) n/a 4,267.090 n/a -18.49 4.99 3.88 n/a
Seattle Genetics, Inc. n/a 705.647 n/a -8.55 23.87 19.75 5.69
Exelixis, Inc. n/a 462.316 n/a -2.87 4.04 3.91 n/a
Progenics Pharmaceuticals, Inc. n/a 317.333 n/a -9.79 4.18 3.54 2.29
ARIUS Research, Inc. n/a 115.719 n/a n/a 48.21 n/a 21.37
Pierre Fabre Medicament 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 87.7 280.2 367.9
Other Revenue 0.0 0.0 0.0
Total Revenue 87.7 280.2 367.9
Cost of Revenue 0.0 0.0 0.0
SG&A Expense 22.0 76.4 98.4
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 73.8 188.1 262.0
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 -49.7 -49.7
Unusual Expense (Income) 0.0 18.0 18.0
Total Expenses 95.8 232.8 328.7
Operating Income -8.1 47.4 39.3
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 7.1 4.0 11.1
Other, Net 0.0 0.0 0.0
Income Before Taxes -1.0 51.4 50.4
Income Taxes 0.6 2.2 2.8
Income After Taxes -1.7 49.2 47.6
Net Income - Excl. Xord. Items -1.7 49.2 47.6
Discontinued Operations 0.0 -98.6 -98.6
Net Income - Incl. Xord. Items -1.7 -49.3 -51.0
Income Avail. to Common -1.7 -49.3 -51.0
Share Items
Basic Avg. Shares Outstanding 25.1 118.8 144.0
Basic EPS - Excl. Xord. Items n/a 0.41 0.33
Basic EPS - Incl. Xord. Items n/a n/a -0.35
Full Dilution Adjustment 0.0 1.9 1.9
Fully Diluted Shares Outstanding 25.1 152.5 177.6
F.D. EPS - Excl. Xord. Items n/a 0.32 0.27
F.D. EPS - Incl. Xord. Items n/a n/a -0.29
Balance Sheet
Assets
Cash and Equivalents 18.2 461.6 479.8
ST Investments 132.2 13.8 146.0
Accounts Receivable 2.3 0.0 2.3
Inventory 0.0 0.0 0.0
Other Current Assets 4.7 27.6 32.3
Current Assets 157.4 503.0 660.4
Accum D&A 0.0 0.0 0.0
PPE, Net 9.7 130.9 140.5
Goodwill & Intangibles 0.0 8.2 8.2
Other Assets 0.0 0.0 0.0
Other LT Assets 1.9 12.0 13.9
Total Assets 169.0 654.1 823.1
Liabilities
Accounts Payable 5.9 1.9 7.8
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 11.7 53.1 64.8
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 0.1 0.8 0.8
Other (Current) Liabilities 15.3 8.2 23.5
Current Liab. 33.0 64.0 97.0
LT Debt 0.0 537.1 537.1
Total LT Debt 0.0 537.1 537.1
Other LT Liab. 21.6 26.0 47.6
Total Liabilities 54.6 627.0 681.6
Shareholders Equity
Common Stock 0.0 1.2 1.2
Additional Paid in Capital 310.1 645.7 955.8
Retained Earnings -195.8 -619.3 -815.1
Other Equity 0.0 -0.5 -0.4
Total Equity 114.4 27.1 141.5
Total Liab. & Equity 169.0 654.1 823.1
Shares Outstanding 25.2 119.4 144.6
Cash Flow
Operating Cash Flow
CF Net Income -1.7 -49.3 -51.0
CF Depreciation 2.4 30.2 32.6
CF Amortization 0.0 15.6 15.6
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 7.1 41.7 48.8
Change in Working Capital -35.2 -9.6 -44.8
Total Cash From Operating Activities -27.4 28.6 1.2
Investing Cash Flow (not calculated)
Capital Expenditures -6.9 -43.4 -50.3
Other Investing Cash Flows 27.2 727.6 754.8
Total Cash From Investing Activities 20.3 684.2 704.5
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 4.3 24.2 28.5
Purchase and Retirement of Debt -0.3 -6.2 -6.5
Other Financing Cash Flow 0.0 -474.6 -474.5
Total Cash From Financing Activities 4.0 -456.6 -452.6
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -3.0 256.2 253.2
Cash Taxes Paid 0.8 0.2 1.0
Cash Interest Paid 0.0 12.4 12.5