Summary

Other Scenarios:

Buyer: New River Pharmaceuticals, Inc. (NRPH) Last Price: 63.73 Market Cap.: 2.36B
Target: OSI Pharmaceuticals, Inc. (OSIP) Last Price: 34.36 Market Cap.: 1.98B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 867
Biopharmaceuticals 330
Medical Devices   244

- 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)
  • NRP409
  • Vyvanse (Lisdexamfetamine Dimesylate)/Formerly NRP104
  • NRP290 (Hydrocodone Prodrug)
  • NRP388
Target (Total: 16)
  • PSN357 (Glycogen Phosphlorylase Inhibitor)
  • PSN105/PSN010 (Glucokinase Activators)
  • PSN9301 (Dipeptidyl Peptidase-IV Inhibitor)
  • Novantrone (Mitoxantrone Hydrochloride)
Buyer

n/a
Target
  • Gelclair

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Albany Molecular Research, Inc. (AMRI)
Target (Total: 5)
  • Gilead Sciences, Inc. (GILD)
  • Nektar Therapeutics (NKTR)
  • ISIS Pharmaceuticals, Inc. (ISIS)
  • Phase Forward Incorporated (PFWD)
Buyer (Total: 0)

n/a
Target (Total: 0)

n/a

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 38 554
Revenue Per Employee 248,982.3 547,638.1
Total Revenue 2.5 83.3
Total Expenses 50.1 309.4
Other Revenue 0.0 5.7
Cost of Revenue 0.0 33.3
SG&A Expense 29.3 40.7
Research & Development 16.6 43.6
Other Operating Expense 0.0 1.1
Operating Income -47.7 -226.1
Unusual Income 4.3 185.7
LT Debt to Capital -0 90.15
Fwd P/E -77.72 -66.08
Fwd P/Rev 27.92 6.01
Book Value -109.7 28.9
Curr Portion of LTD/Cap Lease 137.8 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals > Neurology

Target

Focused (): *Healthcare > Biopharmaceuticals > Oncology

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

OSI Pharmaceuticals, Inc. is a biotechnology company primarily focused on the discovery, development and commercialization of molecular targeted therapies addressing unmet medical needs in oncology, ophthalmology and diabetes. The Company?s primary focus is oncology and its flagship product is Tarceva (erlotinib), a small molecule inhibitor of the epidermal growth factor receptor (EGFR). OSI Pharmaceuticals, Inc. also has research and development programs in diabetes and obesity, which are conducted through Prosidion Limited, the Company?s United Kingdom subsidiary. On November 6, 2006, the Company announced its intention to divest its eye disease business.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 100 78.91
Operating Margin % -174.85 -161.03
Quick Ratio 0.88 3.6
Current Ratio 0.89 4.35
Coverage Ratio -0.06 -0.01
Total Assets 151.5 457.7
Return on Equity % n/a -2,087.44
Return on Assets % -37.43 -132.01
Cash+ ST Inv. Per Share 3.98 3.62
Total Debt 137.8 265.0
Total Debt to Equity % 0 915.5
Total Debt to Tangible Equity % n/a n/a
Debt to Asset % 90.92 57.89

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.
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.
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
  
Ophthalmology
The Ophthalmology Subsector includes therapeutics that treat eye disorders, infections, inflammations and irritations.
  
Pain Management
The Pain Management Subsector includes therapeutics that treat and management pain.
  
Weight Management
The Weight Management Subsectors includes herapeutics that treat and manage weight disorders.
  
Medical Devices  
Medical Supplies
The Medical Supplies Subsector includes basic and consumable products that are widely used in healthcare settings.
  

- 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
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.

Target Products:

  • PSN357 (Glycogen Phosphlorylase Inhibitor)
  • PSN105/PSN010 (Glucokinase Activators)
  • PSN9301 (Dipeptidyl Peptidase-IV Inhibitor)
  
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
  
Immunology  
Autoimmune Disorders  
Multiple Sclerosis (MS)  
Topoisomerase II Inhibitors
Therapeutics that treat a neurodegenerative disease characterized by the gradual accumulation of plaques on the nerve sheaths an enzyme that inhibits the proliferation of cells.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
Neurology
Neuromuscular Disorders  
Multiple Sclerosis (MS)  
Topoisomerase II Inhibitors
Therapeutics that treat multiple sclerosis by inhibiting a key enzyme involved with cell division.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
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
  
Oncology  
Digestive System  
Pancreatic Cancer  
Metastatic  
Epidermal Growth Factor Receptor Tyrosine Kinase (EGFR-TK) Inhibitors
Therapeutics that treat and manage cancers of the pancreas by blocking the action of tyrosine kinase enzyme through switching off the signals from the epidermal growth factor receptors, which promote cell growth.

Target Products:

  • Tarceva (Erlotinib)
  
Hematology  
Leukemia (White Blood Cell Cancer)  
Myeloid  
Acute  
Erythroleukemic  
Topoisomerase II Inhibitors
Therapeutics that treat and manage rapidly progressing cancers affecting immature red blood cells by inhibiting a specific enzyme needed for transcription and replication of DNA.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
Monocytic  
Topoisomerase II Inhibitors
Therapeutics that treat and manage cancers affecting mononuclear cells by inhibiting a specific enzyme needed for transcription and replication of DNA.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
Myeloblastic  
Topoisomerase II Inhibitors
Therapeutics that treat and manage rapidly progressing cancers affecting immature cells of the bone marrow by inhibiting a specific enzyme needed for transcription and replication of DNA.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
Myelogenous (AML)  
Topoisomerase II Inhibitors
Therapeutics that treat and manage rapidly progressing cancers of the myelogenous cells by inhibiting a specific enzyme needed for transcription and replication of DNA.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
Promyelocytic (APL)  
Topoisomerase II Inhibitors
Therapeutics that treat and manage promyelocytic leukemia by inhibiting a specific enzyme needed for transcription and replication of DNA.

Target Products:

  • Novantrone (Mitoxantrone 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:

  • Tarceva (Erlotinib)
  • CP-868,596 (Platelet-Derived Growth Factor Receptor Inhibitor)
  • CP 547,632 (VEGFR Inhibitor)
  • OSI-930
  • Avastin (Bevacizumab)/Tarceva (Erlotinib HCl)
  • Novantrone (Mitoxantrone Hydrochloride)
  
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:

  • Pegatinib
  • OSI-817
  • OSI-906 (Tyrosine Kinase Inhibitor)
  
Respiratory System/Thoracic  
Lung Cancer  
Non Small Cell Lung Cancer (NSCLC)  
Epidermal Growth Factor Receptor Tyrosine Kinase (EGFR-TK) Inhibitors
Therapeutics that treat and manage cancers of the lung including squamous cell carcinoma, adenocarcinoma and large cell carcinoma by blocking the tyrosine kinase enzyme by switching off the signals from the epidermal growth factor receptors.

Target Products:

  • Tarceva (Erlotinib)
  
Urology  
Prostate Cancer  
Palliative Agents  
Topoisomerase II Inhibitors
Therapeutics that treat and manage cancer of the prostate gland by inhibiting a specific enzyme needed for transcription and replication of DNA but are not curative.

Target Products:

  • Novantrone (Mitoxantrone Hydrochloride)
  
Ophthalmology  
Degenerative Disorders  
Edema  
Vascular Endothelial Growth Factor Inhibitors (VEGF)
Therapeutics that treat macular edema by binding to the vascular endothelial growth factor (VEGF) and inhibiting the formation of blood vessels in the eye.

Target Products:

  • Macugen (Pegaptanib Sodium)
  
Macular Degeneration (AMD)  
Vascular Endothelial Growth Factor Inhibitors (VEGF)
Therapeutics that treat macular degeneration by binding to the vascular endothelial growth factor (VEGF) and inhibiting the formation of blood vessels in the eye.

Target Products:

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

Target Products:

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

Target Products:

  • E10030 (Anti-platelet derived growth factor)
  
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:

  • NRP388
  • NRP369 (Oxycodone Prodrug)
  
Weight Management  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of weight disorders in very early stages of research where no human subject is involved.

Target Products:

  • Prosidion Obesity Reserach (Appetite Targets/GPCR Agonist Program/CB-1 Antagonist)
  
Medical Devices  
Medical Supplies  
Treatment  
Wound Management/First Aid  
Drainage/Hydration
Medical devices designed to irrigate, moisturize and remove excess fluids from wounds and wound surface.

Target Products:

  • Gelclair
  

- 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 161,058.996 15.12 15.20 3.51 3.60 15.27
Novartis AG (ADR) n/a 130,937.348 24.87 16.90 3.56 3.30 6.59
Eli Lilly & Co. n/a 62,916.207 23.63 16.66 4.01 3.60 5.73
Buyer
  Johnson & Johnson n/a 178,185.093 16.12 15.74 3.34 3.00 16.76
GlaxoSmithKline plc (ADR) n/a 161,058.996 15.12 15.20 3.51 3.60 15.27
Target
  Pfizer Inc. n/a 182,865.248 9.46 11.75 3.78 3.81 7.00
GlaxoSmithKline plc (ADR) n/a 161,058.996 15.12 15.20 3.51 3.60 15.27
Roche Holding Ltd. (ADR) n/a 157,158.883 24.84 24.29 4.66 n/a 6.98
Novartis AG (ADR) n/a 130,937.348 24.87 16.90 3.56 3.30 6.59
Merck & Co., Inc. n/a 98,820.891 22.29 17.32 4.37 4.45 6.51
Genentech, Inc. n/a 87,827.456 41.56 31.71 9.46 7.46 11.43
AstraZeneca plc (ADR) n/a 83,649.192 13.84 14.07 3.16 3.19 7.54
Amgen, Inc. n/a 68,077.761 23.08 13.86 4.77 4.42 17.39
Eli Lilly & Co. n/a 62,916.207 23.63 16.66 4.01 3.60 5.73
Bristol Myers Squibb Co. n/a 54,747.562 34.54 22.08 3.06 2.85 16.54
Alcon, Inc. n/a 41,566.179 30.83 26.85 8.49 7.69 18.35
Allergan, Inc. n/a 17,268.277 n/a 26.28 5.64 4.85 64.94
ImClone Systems Incorporated n/a 3,659.963 9.87 36.39 5.40 6.26 4.82
Bausch & Lomb Inc. n/a 2,837.531 147.78 75.68 1.21 1.21 13.44
Regeneron Pharmaceuticals, Inc. n/a 1,533.134 n/a -13.12 24.16 22.59 7.08
Onyx Pharmaceuticals, Inc. n/a 1,199.110 n/a -16.19 4,818.42 94.45 5.38
GPC Biotech AG (ADR) n/a 967.715 n/a n/a 32.08 n/a 10.89
Pharmion Corporation n/a 958.070 n/a -16.11 4.01 3.88 5.87
QLT Inc. (USA) n/a 590.887 n/a 23.79 3.37 3.94 2.89
Enzon Pharmaceuticals, Inc. n/a 362.040 16.99 -102.75 1.95 1.97 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
  Albany Molecular Research, Inc. n/a 314.068 143.99 32.03 1.75 1.63 1.12
Target
  Gilead Sciences, Inc. n/a 36,432.851 n/a 26.55 12.04 9.27 20.07
Nektar Therapeutics n/a 1,241.174 n/a -10.95 5.70 5.64 8.56
ISIS Pharmaceuticals, Inc. n/a 797.630 n/a -11.94 32.51 24.05 26.33
Phase Forward Incorporated n/a 504.583 40.86 37.32 4.73 3.97 8.78
Degussa AG 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

- 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 10,722.895 38.54 30.08 5.97 4.86 11.38
Albany Molecular Research, Inc. n/a 314.068 143.99 32.03 1.75 1.63 1.12
DepoMed, Inc. n/a 152.370 n/a -4.07 15.95 5.89 n/a
University Of California, San Francisco n/a n/a n/a n/a n/a n/a n/a
Target
  Pfizer Inc. n/a 182,865.248 9.46 11.75 3.78 3.81 7.00
Roche Holding Ltd. (ADR) n/a 157,158.883 24.84 24.29 4.66 n/a 6.98
Merck & Co., Inc. n/a 98,820.891 22.29 17.32 4.37 4.45 6.51
Genentech, Inc. n/a 87,827.456 41.56 31.71 9.46 7.46 11.43
Wyeth n/a 70,974.169 16.91 15.28 3.49 3.28 6.84
Eli Lilly & Co. n/a 62,916.207 23.63 16.66 4.01 3.60 5.73
Bristol Myers Squibb Co. n/a 54,747.562 34.54 22.08 3.06 2.85 16.54
Gilead Sciences, Inc. n/a 36,432.851 n/a 26.55 12.04 9.27 20.07
McKesson Corporation n/a 17,404.791 19.87 20.75 0.19 0.19 4.10
Merck Serono S.A. (ADR) n/a 13,761.190 20.12 19.56 5.03 4.96 5.69
Nektar Therapeutics n/a 1,241.174 n/a -10.95 5.70 5.64 8.56
ISIS Pharmaceuticals, Inc. n/a 797.630 n/a -11.94 32.51 24.05 26.33
Enzon Pharmaceuticals, Inc. n/a 362.040 16.99 -102.75 1.95 1.97 n/a
SGX Pharmaceuticals, Inc. n/a 73.462 n/a -3.51 2.64 2.04 5.40
Dipharma Francis Srl n/a n/a n/a n/a n/a n/a n/a
Sumitomo Chemical Company, Limited n/a n/a n/a n/a n/a n/a n/a
Archemix Corporation n/a n/a n/a n/a n/a n/a n/a
Schwarz Pharma, Inc. n/a n/a n/a n/a n/a n/a n/a
Government - United States n/a n/a n/a n/a n/a n/a n/a
Degussa AG 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 34.3 339.6 373.9
Other Revenue 0.0 36.1 36.1
Total Revenue 34.3 375.7 410.0
Cost of Revenue 0.0 79.2 79.2
SG&A Expense 49.0 158.6 207.6
Depreciation & Amortization 0.2 19.9 20.1
Research & Development 41.0 176.7 217.6
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 40.3 40.3
Unusual Expense (Income) 4.3 506.0 510.2
Total Expenses 94.4 980.7 1,075.1
Operating Income -60.0 -605.0 -665.0
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 3.6 3.7 7.4
Gain/Loss On Sale Of Assets -0.0 0.0 -0.0
Other, Net 0.0 -3.0 -3.0
Income Before Taxes -56.4 -604.2 -660.6
Income Taxes 0.3 0.0 0.3
Income After Taxes -56.7 -604.2 -660.9
Net Income - Excl. Xord. Items -56.7 -604.2 -660.9
Extraordinary Items 0.0 22.0 22.0
Accounting Change -0.7 0.0 -0.7
Net Income - Incl. Xord. Items -57.4 -582.2 -639.6
Income Avail. to Common -57.4 -582.2 -639.6
Share Items
Basic Avg. Shares Outstanding 37.0 57.1 94.1
Basic EPS - Excl. Xord. Items n/a n/a -7.03
Basic EPS - Incl. Xord. Items n/a n/a -6.80
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 37.0 57.1 94.1
F.D. EPS - Excl. Xord. Items n/a n/a -7.03
F.D. EPS - Incl. Xord. Items n/a n/a -6.80
Balance Sheet
Assets
Cash and Equivalents 87.0 42.0 129.0
ST Investments 60.0 164.8 224.8
Accounts Receivable 0.2 80.1 80.3
Inventory 0.0 36.9 36.9
Prepayments and Advances 1.1 9.1 10.2
Other Current Assets 0.0 13.2 13.2
Current Assets 148.3 346.1 494.4
PPE 2.9 0.0 2.9
Accum D&A -0.7 0.0 -0.7
PPE, Net 2.2 56.2 58.4
Goodwill & Intangibles 0.0 46.1 46.1
Other Assets 0.0 0.0 0.0
Other LT Assets 1.1 9.3 10.4
Total Assets 151.5 457.7 609.3
Liabilities
Accounts Payable 6.0 0.0 6.0
Payable/Accrued 0.0 66.8 66.8
Accrued Expenses 13.8 0.0 13.8
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 12.8 22.4
Current Liab. 167.2 79.6 246.8
LT Debt 0.0 265.0 265.0
Capitalized Lease Obligations 0.0 0.0 0.0
Total LT Debt 0.0 265.0 265.0
Other LT Liab. 94.1 84.2 178.3
Total Liabilities 261.2 428.8 690.0
Shareholders Equity
Common Stock 0.0 0.6 0.6
Additional Paid in Capital 17.5 1,616.9 1,634.4
Retained Earnings -127.3 -1,553.7 -1,680.9
Treasure Stock 0.0 -37.2 -37.2
Other Equity 0.0 2.4 2.4
Total Equity -109.7 28.9 -80.8
Total Liab. & Equity 151.5 457.7 609.3
Shares Outstanding 37.0 57.2 94.2
Cash Flow
Operating Cash Flow
CF Net Income -57.4 -582.2 -639.6
CF Depreciation 0.2 36.1 36.2
CF Amortization 0.0 506.0 506.0
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 42.7 24.1 66.7
Change in Working Capital 30.5 53.6 84.1
Total Cash From Operating Activities 15.9 37.5 53.4
Investing Cash Flow (not calculated)
Capital Expenditures -2.1 -10.7 -12.8
Other Investing Cash Flows -10.8 -157.7 -168.5
Total Cash From Investing Activities -12.8 -168.4 -181.3
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 31.7 9.1 40.9
Purchase and Retirement of Debt 89.7 -0.6 89.0
Other Financing Cash Flow -41.0 -0.1 -41.1
Total Cash From Financing Activities 80.4 8.4 88.8
Exchange Rate Effects 0.0 0.5 0.5
Net Change in Cash 83.5 -122.1 -38.6
Cash Interest Paid 0.0 7.2 7.2