Summary

Other Scenarios:

Buyer: New River Pharmaceuticals, Inc. (NRPH) Last Price: 63.61 Market Cap.: 2.36B
Target: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 35.01 Market Cap.: 1.24B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 874
Biopharmaceuticals 331

- 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.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 5)
  • NRP409
  • Vyvanse (Lisdexamfetamine Dimesylate)/Formerly NRP104
  • NRP290 (Hydrocodone Prodrug)
  • NRP369 (Oxycodone Prodrug)
Target (Total: 9)
  • Erdosteine
  • Delsym (Dextromethorphan Polistirex)
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
Buyer

n/a
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Albany Molecular Research, Inc. (AMRI)
Target (Total: 3)
  • Cardinal Health, Inc. (CAH)
  • UCB S.A.
  • Boehringer Ingelheim GmbH
Buyer (Total: 0)

n/a
Target (Total: 4)
  • Wal-Mart Stores, Inc. (WMT)
  • Walgreen Company (WAG)
  • CVS/Caremark Corporation (CVS)
  • McKesson Corporation (MCK)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 38 496
Revenue Per Employee 248,982.3 2,111,996.0
Total Revenue 2.5 110.6
Total Expenses 50.1 91.2
Other Revenue 0.0 0.0
Cost of Revenue 0.0 26.6
SG&A Expense 29.3 56.0
Research & Development 16.6 6.7
Other Operating Expense 0.0 2.7
Operating Income -47.7 19.4
Unusual Income 4.3 0.0
LT Debt to Capital -0 0
Fwd P/E -77.66 31.73
Fwd P/Rev 27.89 3.65
Book Value -109.7 261.2
Curr Portion of LTD/Cap Lease 137.8 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals > Neurology

Target

Focused (): *Healthcare > Biopharmaceuticals > Respiratory System > Upper Respiratory Tract Disorders > Coughs/Colds

Business Description

Buyer

New River Pharmaceuticals Inc. is a specialty pharmaceutical company developing pharmaceuticals. Utilizing the Company's Carrierwave technology, it is developing molecular entities that are derivatives of public domain actives, and attempting to address certain deficiencies associated with drugs on the market. The Company?s drug development pipeline includes three active programs in clinical or preclinical development stages. All of its drug candidates are small molecules designed for oral delivery. Vyvanse is intended to provide a safer, abuse-resistant and effective alternative to existing amphetamine-based therapies used to treat Attention Deficit Hyperactiviy Disorder (ADHD). The Company is developing NRP290 to treat acute pain as an alternative to Lortab, Vicodin and Vicoprofen. NRP290 is intended to provide a safer, abuse-resistant and an effective alternative to opioids.

Target

Adams Respiratory Therapeutics, Inc. is a specialty pharmaceutical company focused on late-stage development, commercialization and marketing of over-the-counter (OTC) and prescription pharmaceuticals for the treatment of respiratory disorders. The Company markets three OTC products under its Mucinex brand, one product under its Humibid brand, two products under Delsym brand and four products under Children's Mucinex line of products. In June 2006, the Company acquired the United States marketing and sales rights to Delsym from UCB, Inc. (UCB). Delsym is an OTC 12-hour liquid cough suppressant.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 100 74.85
Operating Margin % -174.85 25.32
Quick Ratio 0.88 1.92
Current Ratio 0.89 2.98
Coverage Ratio -0.06 0
Total Assets 151.5 313.0
Return on Equity % n/a 19.91
Return on Assets % -37.43 16.61
Cash+ ST Inv. Per Share 3.98 1.22
Total Debt 137.8 0.0
Total Debt to Equity % 0 0
Total Debt to Tangible Equity % n/a 0
Debt to Asset % 90.92 0.00

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
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.
  
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.
  

- 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
Endocrinology/Metabolism  
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:

  • NRP409
  
Neurology  
Psychiatric Disorders  
Childhood/Adolescent Disorders  
Attention Deficit Disorder (ADD)/Attention Deficit Hyperactivity Disorder (ADHD)  
Sympathomimetic Agents
Therapeutic members of the amphetamine group of sympathomimetic amines that treat the disorder involving hyperactivity in children due to an abnormally short attention span.

Buyer Products:

  • Vyvanse (Lisdexamfetamine Dimesylate)/Formerly NRP104
  
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:

  • NRP290 (Hydrocodone Prodrug)
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of pain in very early stages of research where no human subject is involved.

Buyer Products:

  • NRP369 (Oxycodone Prodrug)
  • NRP388
  
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:

  • Erdosteine
  
Upper Respiratory Tract Disorders  
Coughs/Colds  
Antitussives
Therapeutics that relieve or prevent coughs.

Target Products:

  • Delsym (Dextromethorphan Polistirex)
  
Antitussives/Expectorants
Therapeutics that treat coughs and colds by suppressing coughs and helping ejection of the mucous.

Target Products:

  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  
Decongestants/Expectorants
Therapeutics that treat coughs and colds by reducing mucous build up and help in ejection of mucous.

Target Products:

  • Mucinex D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  • Maximum Strength D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  
Expectorants
Therapeutics that treat coughs and colds by helping in the ejection of mucous.

Target Products:

  • Mucinex SE (Guaifenesin Extended Release)
  • Humibid (Guaifenesin Extended Release)
  • Guaifenesin Combination Extended-Release Product
  

- 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 175,174.320 15.85 15.53 3.29 2.96 16.48
Novartis AG (ADR) n/a 134,130.950 25.48 16.79 3.65 3.36 6.75
Buyer
  Johnson & Johnson n/a 175,174.320 15.85 15.53 3.29 2.96 16.48
GlaxoSmithKline plc (ADR) n/a 157,482.058 14.85 15.28 3.45 3.56 15.00
Novartis AG (ADR) n/a 134,130.950 25.48 16.79 3.65 3.36 6.75
Abbott Laboratories n/a 83,109.913 48.41 19.40 3.70 3.64 n/a
Tyco International Ltd. n/a 63,429.480 16.00 15.98 1.52 1.46 11.07
Eli Lilly & Co. n/a 61,022.372 22.92 16.27 3.89 3.52 5.56
Shire plc (ADR) n/a 10,863.806 39.05 30.71 6.05 4.97 11.53
Endo Pharmaceuticals n/a 3,873.273 28.10 17.40 4.26 3.76 4.95
Watson Pharmaceuticals, Inc. n/a 2,663.988 n/a 21.11 1.35 1.03 250.68
Ligand Pharmaceuticals Inc. n/a 1,061.597 n/a -53.00 7.53 39.16 n/a
Noven Pharmaceuticals, Inc. n/a 585.807 36.64 20.65 9.65 6.96 3.36
Pain Therapeutics, Inc. n/a 328.061 53.02 49.33 6.08 5.49 4.21
Nastech Pharmaceutical n/a 284.265 n/a -9.29 9.98 9.90 6.56
Acura Pharmaceuticals, Inc. n/a 264.931 n/a n/a n/a n/a n/a
Amarin Corporation plc (ADR) n/a 203.142 n/a -7.93 403.04 n/a 7.03
Target
  The Procter & Gamble Company n/a 201,313.501 21.07 21.00 2.74 2.65 n/a
Pfizer Inc. n/a 181,591.409 9.39 11.67 3.75 3.80 6.95
Johnson & Johnson n/a 175,174.320 15.85 15.53 3.29 2.96 16.48
Novartis AG (ADR) n/a 134,130.950 25.48 16.79 3.65 3.36 6.75
Wyeth n/a 67,872.571 16.17 14.70 3.34 3.16 6.54
Bayer AG (ADR) n/a 46,968.812 21.00 17.56 1.22 1.24 n/a
Schering-Plough Corporation n/a 36,628.259 34.69 22.51 3.46 3.25 4.94
CVS/Caremark Corporation n/a 28,618.361 21.12 18.35 0.65 0.54 5.30

- 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
  Albany Molecular Research, Inc. n/a 329.987 151.29 33.93 1.84 1.72 1.18
Target
  Cardinal Health, Inc. n/a 28,989.364 19.62 21.32 0.34 0.33 6.42
UCB S.A. n/a n/a n/a n/a n/a n/a n/a
Boehringer Ingelheim GmbH 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
Target
  Wal-Mart Stores, Inc. 10.00% 199,690.076 17.69 14.77 0.57 0.52 4.18
Walgreen Company 10.00% 47,809.556 26.03 23.33 0.97 0.88 4.71
CVS/Caremark Corporation 10.00% 28,618.361 21.12 18.35 0.65 0.54 5.30
McKesson Corporation 10.00% 17,079.854 19.50 20.21 0.19 0.18 4.02

- 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
  Shire plc (ADR) n/a 10,863.806 39.05 30.71 6.05 4.97 11.53
Albany Molecular Research, Inc. n/a 329.987 151.29 33.93 1.84 1.72 1.18
DepoMed, Inc. n/a 155.089 n/a -4.94 16.24 5.58 n/a
University Of California, San Francisco n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. n/a 199,690.076 17.69 14.77 0.57 0.52 4.18
Target Corporation n/a 52,811.268 18.95 16.87 0.89 0.81 3.38
Walgreen Company n/a 47,809.556 26.03 23.33 0.97 0.88 4.71
Cardinal Health, Inc. n/a 28,989.364 19.62 21.32 0.34 0.33 6.42
CVS/Caremark Corporation n/a 28,618.361 21.12 18.35 0.65 0.54 5.30
Sears Holdings Corporation n/a 28,008.552 18.80 17.22 0.53 0.54 3.69
The Kroger Co. n/a 19,952.888 17.88 17.39 0.30 0.29 7.31
McKesson Corporation n/a 17,079.854 19.50 20.21 0.19 0.18 4.02
Safeway Inc. n/a 16,232.424 18.64 18.48 0.40 0.38 4.96
AmerisourceBergen Corp. n/a 10,210.188 20.73 20.65 0.16 0.16 8.22
Rite Aid Corporation n/a 3,092.843 2.52 n/a 0.17 0.18 3.95
Albertsons LLC n/a n/a n/a n/a n/a n/a n/a
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
UCB S.A. 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 34.3 329.6 363.9
Other Revenue 0.0 0.0 0.0
Total Revenue 34.3 329.6 363.9
Cost of Revenue 0.0 82.9 82.9
SG&A Expense 49.0 139.4 188.4
Depreciation & Amortization 0.2 0.0 0.2
Research & Development 41.0 24.4 65.4
Interest Expense 0.0 -3.2 -3.2
Other Operating Expense 0.0 2.7 2.7
Unusual Expense (Income) 4.3 0.0 4.3
Total Expenses 94.4 246.1 340.5
Operating Income -60.0 83.4 23.4
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 3.6 0.0 3.6
Gain/Loss On Sale Of Assets -0.0 0.0 -0.0
Other, Net 0.0 0.0 0.0
Income Before Taxes -56.4 83.4 27.0
Income Taxes 0.3 31.4 31.7
Income After Taxes -56.7 52.0 -4.7
Net Income - Excl. Xord. Items -56.7 52.0 -4.7
Accounting Change -0.7 0.0 -0.7
Net Income - Incl. Xord. Items -57.4 52.0 -5.4
Income Avail. to Common -57.4 52.0 -5.4
Share Items
Basic Avg. Shares Outstanding 37.0 35.2 72.1
Basic EPS - Excl. Xord. Items n/a 1.48 -0.07
Basic EPS - Incl. Xord. Items n/a 1.48 -0.08
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 37.0 37.1 74.1
F.D. EPS - Excl. Xord. Items n/a 1.40 -0.06
F.D. EPS - Incl. Xord. Items n/a 1.40 -0.07
Balance Sheet
Assets
Cash and Equivalents 87.0 13.2 100.2
ST Investments 60.0 32.0 92.0
Accounts Receivable 0.2 52.4 52.6
Inventory 0.0 40.2 40.2
Prepayments and Advances 1.1 8.4 9.5
Other Current Assets 0.0 5.4 5.4
Current Assets 148.3 151.6 299.9
PPE 2.9 0.0 2.9
Accum D&A -0.7 0.0 -0.7
PPE, Net 2.2 16.4 18.5
Goodwill & Intangibles 0.0 129.3 129.3
Other Assets 0.0 0.0 0.0
Other LT Assets 1.1 15.7 16.8
Total Assets 151.5 313.0 464.6
Liabilities
Accounts Payable 6.0 31.2 37.2
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 13.8 16.7 30.5
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 137.8 0.0 137.8
Other (Current) Liabilities 9.6 3.0 12.6
Current Liab. 167.2 51.0 218.1
LT Debt 0.0 0.0 0.0
Capitalized Lease Obligations 0.0 0.0 0.0
Total LT Debt 0.0 0.0 0.0
Other LT Liab. 94.1 0.9 94.9
Total Liabilities 261.2 51.8 313.0
Shareholders Equity
Common Stock 0.0 0.4 0.4
Additional Paid in Capital 17.5 475.0 492.6
Retained Earnings -127.3 -214.2 -341.4
Other Equity 0.0 0.0 0.0
Total Equity -109.7 261.2 151.5
Total Liab. & Equity 151.5 313.0 464.6
Shares Outstanding 37.0 35.2 72.2
Cash Flow
Operating Cash Flow
CF Net Income -57.4 52.0 -5.4
CF Depreciation 0.2 2.2 2.4
CF Deferred Taxes 0.0 -1.0 -1.0
Other Non-Cash Items 42.7 10.6 53.3
Change in Working Capital 30.5 -37.7 -7.2
Total Cash From Operating Activities 15.9 26.1 42.0
Investing Cash Flow (not calculated)
Capital Expenditures -2.1 -138.0 -140.0
Other Investing Cash Flows -10.8 -32.1 -42.8
Total Cash From Investing Activities -12.8 -170.1 -182.9
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 31.7 3.0 34.7
Purchase and Retirement of Debt 89.7 0.0 89.7
Other Financing Cash Flow -41.0 10.6 -30.4
Total Cash From Financing Activities 80.4 13.6 94.0
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash 83.5 -130.3 -46.8
Cash Taxes Paid 0.0 10.7 10.7
Cash Interest Paid 0.0 0.0 0.0