Summary

Other Scenarios:

Buyer: Symmetry Medical Inc. (SMA) Last Price: 16.37 Market Cap.: 577.76M
Target: DepoMed, Inc. (DEPO) Last Price: 4.94 Market Cap.: 234.50M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 908
Biopharmaceuticals   366
Medical Devices   247
Outsourced Services 65
Manufacturing   1,190
Industrial Manufacturing   397

- 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: 6)
  • Riley Medical Inc.
  • Symmetry Medical Total Solutions
Target (Total: 8)
  • AcuForm Oral Drug Delivery Technology
Buyer
  • PolyVac
  • Riley Medical Medical Instrument Containers
  • Clamonta Limited
  • Mettis Aerospace Limited
Target
  • Furosemide GR
  • GERD Program
  • Glumetza (Metformin GR)
  • Gabapentin GR

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 0)

n/a
Target (Total: 1)
  • Biovail Corporation (USA) (BVF)
Buyer (Total: 9)
  • Johnson & Johnson (JNJ)
  • Zimmer Holdings, Inc. (ZMH)
  • Medtronic, Inc. (MDT)
  • Cardinal Health, Inc. (CAH)
Target (Total: 5)
  • Esprit Pharma Holding Company, Inc.
  • King Pharmaceuticals, Inc. (KG)
  • Biovail Corporation (USA) (BVF)
  • LG Electronics (LGLD:GB)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 1,795 105
Revenue Per Employee 150,454.4 153,580.8
Total Revenue 67.5 3.8
Total Expenses 60.4 15.1
Other Revenue 0.0 0.0
Cost of Revenue 52.6 0.3
SG&A Expense 7.9 6.2
Research & Development 0.0 8.6
Other Operating Expense 0.0 0.0
Operating Income 7.1 -11.3
Unusual Income 0.0 0.0
LT Debt to Capital 17.85 0
Fwd P/E 21.49 -5.64
Fwd P/Rev 2.06 8.56
Book Value 296.8 -49.5
Curr Portion of LTD/Cap Lease 10.8 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Outsourced Services > Development/Manufacturing Services > Contract Manufacturing Organizations (CMO) > Medical Devices

Target

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

Business Description

Buyer

Symmetry Medical Inc. (Symmetry) is an independent provider of implants and related instruments and cases to global orthopedic device manufacturers. Symmetry designs, develops and produces these products for companies in other segments of the medical device market, including the dental, osteobiologic and endoscopy segments, and it also provides limited specialized products and services to non-healthcare markets, such as the aerospace market. The Company?s primary products and services include implants, instruments, cases and other specialized products and services for non-healthcare markets, primarily the aerospace market. In April 2007, it acquired TNCO Inc., a specialty medical instrument company. On January 9, 2007, it subsidiary Thornton Precision Components Limited acquired Whedon Limited and the holding company of Clamonta Limited. On August 31, 2006, it acquired certain assets of Everest Metal Finishing, LLC, and also acquired Everest Metal International, Limited.

Target

Depomed, Inc. (Depomed) is a specialty pharmaceutical company engaged in the development and commercialization of products that are based on its oral drug delivery technologies. Depomed has developed two commercial products: GLUMETZA (metformin hydrochloride extended release tablets), which is a once-daily treatment for adults with type 2 diabetes that it jointly commercializes in the United States with King Pharmaceuticals, Inc. and ProQuin XR (ciprofloxacin hydrochloride extended release tablets), which is a once-daily treatment for uncomplicated urinary tract infections that Esprit Pharma, Inc. markets in the United States. Depomed has also developed Gabapentin GR, an extended release form of gabapentin. In addition, the Company has other product candidates in earlier stages of development, including a treatment for gastroesophageal reflux disease.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 23.75 84.77
Operating Margin % 12.11 -369.97
Quick Ratio 1.25 1.44
Current Ratio 2.4 1.84
Coverage Ratio -0.18 0
Total Assets 423.1 37.0
Return on Equity % 6.56 n/a
Return on Assets % 4.6 -115.66
Cash+ ST Inv. Per Share 0.17 0.61
Total Debt 77.5 0.0
Total Debt to Equity % 26.12 0
Total Debt to Tangible Equity % 75.91 n/a
Debt to Asset % 18.32 0.00

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals  
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Digestive System
The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive system.
  
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.
  
Medical Devices  
Medical Supplies
The Medical Supplies Subsector includes basic and consumable products that are widely used in healthcare settings.
  
Outsourced Services
Development/Manufacturing Services
The Development/Manufacturing Services Subsector includes companies that provide research, development, manufacturing, sales and marketing to biopharmaceutical and medical device companies.
  
Drug Delivery Technology
The Drug Delivery Technology Subsector includes companies that develop novel delivery methods for therapeutics.
  
Manufacturing  
Industrial Manufacturing  
Aerospace and Defense
Aerospace and Defense is comprised of products and services with applications in aviation, space exploration, combat and national security, small arms, and other defense and security purposes.
  

- 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
  
Digestive System  
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.

Target Products:

  • GERD Program
  
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.

Target Products:

  • Gabapentin GR
  
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  
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  
Non-Narcotics  
Gamma-Aminobutyric Acid (GABA) Reuptake Inhibitors
Therapeutics that treat pain by inhibiting the reuptake of GABA, which increases the levels of GABA in the synapses.

Target Products:

  • Gabapentin GR
  
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
  
Medical Devices  
Medical Supplies  
Safety and Sterilization  
Sterilization  
Tools/Supplies Protection
Devices used to prepare, store and handle surgical devices, which include covers, wraps, tray liners, pouches, cassettes and others.

Buyer Products:

  • PolyVac
  • Riley Medical Medical Instrument Containers
  
Outsourced Services
Development/Manufacturing Services  
Contract Manufacturing Organizations (CMO)  
Medical Devices
Contract Manufacturing Organizations that manufacture (and/or design, develop) medical devices and products for other organizations.

Buyer Products:

  • Riley Medical Inc.
  • Symmetry Medical Total Solutions
  
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:

  • AcuForm Oral Drug Delivery Technology
  
Manufacturing  
Industrial Manufacturing  
Aerospace and Defense  
Aerospace  
Aviation Equipment  
Other Aircraft Parts and Auxiliary Equipment and Services
Parts, auxiliary equipment, and specialized services required to build and maintain an aircraft. Some airport equipment is also included.

Buyer Products:

  • Clamonta Limited
  • Mettis Aerospace Limited
  

- 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
Target
  Pfizer Inc. n/a 181,913.371 9.77 12.05 3.71 3.81 6.48
Johnson & Johnson n/a 179,963.150 17.44 15.42 3.25 2.98 15.39
GlaxoSmithKline plc (ADR) n/a 147,509.658 13.61 13.29 3.20 3.23 13.91
Merck & Co., Inc. n/a 107,193.319 23.21 17.00 4.66 4.63 6.63
Abbott Laboratories n/a 83,179.438 53.69 19.30 3.68 3.72 n/a
Wyeth n/a 76,902.793 17.76 16.39 3.68 3.55 7.16
Bristol Myers Squibb Co. n/a 62,092.452 39.78 22.63 3.51 3.22 16.99
Bayer AG (ADR) n/a 58,900.185 11.37 17.48 1.45 1.33 n/a
Schering-Plough Corporation n/a 45,471.048 36.41 24.26 4.13 3.88 5.89
Teva Pharmaceutical Industries Ltd (ADR) n/a 32,986.239 17.39 18.51 3.74 3.60 24.33
Barr Pharmaceuticals, Inc. n/a 5,667.418 n/a 16.50 3.03 2.25 n/a
Mylan Laboratories Inc. n/a 4,489.333 20.66 10.63 2.79 2.10 6.57
Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30
Alpharma Inc. n/a 1,164.954 19.07 20.53 1.76 1.66 2.52
XenoPort, Inc. n/a 1,127.551 n/a -42.04 43.61 17.48 13.67
Sciele Pharma Inc. n/a 859.335 17.50 14.76 2.78 2.30 8.17
Flamel Technologies S.A. (ADR) n/a 566.178 n/a 201.36 20.55 4.87 8.32
SkyePharma PLC (ADR) n/a 415.644 n/a -15.63 4.09 3.22 n/a
Isolagen, Inc. n/a 125.156 n/a n/a 27.16 n/a n/a
MiddleBrook Pharmaceuticals, Inc. n/a 114.999 n/a -2.25 20.09 7.90 n/a
Access Pharmaceuticals, Inc. n/a 18.207 n/a n/a n/a n/a n/a
A.P. Pharma, Inc. n/a 15.518 n/a -0.96 n/a n/a 2.49
Carrington Laboratories, Inc. n/a 12.645 n/a n/a 0.51 n/a 8.76

- 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
Target
  Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30

- 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
  Johnson & Johnson 22.80% 179,963.150 17.44 15.42 3.25 2.98 15.39
Zimmer Holdings, Inc. 12.20% 20,246.751 23.48 21.06 5.65 5.19 10.43
Medtronic, Inc. n/a 60,840.448 21.71 19.82 4.95 4.45 11.66
Cardinal Health, Inc. n/a 26,879.236 19.91 20.51 0.31 0.31 7.76
Stryker Corporation n/a 26,716.942 30.58 26.57 4.79 4.35 7.52
St. Jude Medical, Inc. n/a 14,442.940 25.93 23.72 4.24 3.87 44.89
Smith & Nephew plc (ADR) n/a 11,602.680 27.82 24.52 4.03 3.77 8.74
Biomet, Inc. n/a 11,246.617 28.49 25.59 5.36 5.23 7.68
3i Group plc n/a n/a n/a n/a n/a n/a n/a
Target
  Esprit Pharma Holding Company, Inc. 48.20% n/a n/a n/a n/a n/a n/a
King Pharmaceuticals, Inc. n/a 5,080.382 14.34 11.70 2.51 2.46 4.33
Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30
LG Electronics 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

- 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
Target
  Shire plc (ADR) n/a 13,990.911 42.42 37.53 7.31 6.28 7.20
King Pharmaceuticals, Inc. n/a 5,080.382 14.34 11.70 2.51 2.46 4.33
Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30
Patheon, Inc. n/a 373.694 n/a n/a 0.52 n/a 1.77
AVI BioPharma, Inc. n/a 153.376 n/a -6.53 261.88 8.86 5.41
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
LG Electronics 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

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 251.5 12.0 263.5
Other Revenue 0.0 0.0 0.0
Total Revenue 251.5 12.0 263.5
Cost of Revenue 191.8 1.8 193.6
SG&A Expense 29.3 25.0 54.2
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 0.0 29.8 29.8
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Total Expenses 221.0 56.6 277.6
Operating Income 30.4 -44.5 -14.1
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -5.4 0.0 -5.4
Other, Net 0.4 1.8 2.3
Income Before Taxes 25.5 -42.7 -17.2
Income Taxes 6.0 0.1 6.1
Income After Taxes 19.5 -42.8 -23.3
Net Income - Excl. Xord. Items 19.5 -42.8 -23.3
Net Income - Incl. Xord. Items 19.5 -42.8 -23.3
Preferred Dividends 0.0 -0.7 -0.7
Income Avail. to Common 19.5 -43.4 -24.0
Share Items
Basic Avg. Shares Outstanding 35.0 42.1 77.0
Basic EPS - Excl. Xord. Items 0.56 n/a -0.30
Basic EPS - Incl. Xord. Items 0.56 n/a -0.30
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 35.2 42.1 77.3
F.D. EPS - Excl. Xord. Items 0.55 n/a -0.30
F.D. EPS - Incl. Xord. Items 0.55 n/a -0.30
Balance Sheet
Assets
Cash and Equivalents 6.1 5.2 11.3
ST Investments 0.0 20.6 20.6
Accounts Receivable 55.4 1.1 56.5
Inventory 49.3 4.4 53.6
Prepayments and Advances 0.0 3.3 3.3
Other Current Assets 7.4 0.0 7.4
Current Assets 118.1 34.5 152.6
PPE 171.9 0.0 171.9
Accum D&A -62.5 0.0 -62.5
PPE, Net 109.4 2.3 111.7
Goodwill & Intangibles 194.7 0.0 194.7
Other Assets 0.0 0.0 0.0
Other LT Assets 0.9 0.2 1.1
Total Assets 423.1 37.0 460.1
Liabilities
Accounts Payable 19.2 4.6 23.7
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 14.9 5.6 20.5
ST Debt 2.2 0.0 2.2
Curr Port of LTD & Cap Lease Oblg 10.8 0.0 10.8
Other (Current) Liabilities 2.2 8.5 10.7
Current Liab. 49.2 18.7 67.9
LT Debt 59.1 0.0 59.1
Capitalized Lease Obligations 5.4 0.0 5.4
Total LT Debt 64.5 0.0 64.5
Deferred Taxes 11.7 0.0 11.7
Other LT Liab. 0.9 55.8 56.6
Total Liabilities 126.3 74.5 200.8
Shareholders Equity
Preferred Stock 0.0 12.0 12.0
Common Stock 0.0 145.5 145.5
Additional Paid in Capital 273.0 0.0 273.0
Retained Earnings 10.5 -195.0 -184.5
Other Equity 13.4 -0.0 13.4
Total Equity 296.8 -37.5 259.4
Total Liab. & Equity 423.1 37.0 460.1
Shares Outstanding 35.3 42.1 77.4
Cash Flow
Operating Cash Flow
CF Net Income 19.5 -42.8 -23.3
CF Depreciation 16.3 1.2 17.5
CF Amortization 1.6 0.0 1.6
CF Deferred Taxes -1.0 0.0 -1.0
Other Non-Cash Items -1.3 2.5 1.2
Change in Working Capital 2.2 9.2 11.4
Total Cash From Operating Activities 37.3 -29.8 7.4
Investing Cash Flow (not calculated)
Capital Expenditures -19.0 -0.6 -19.6
Other Investing Cash Flows -62.9 26.0 -36.9
Total Cash From Investing Activities -81.9 25.4 -56.5
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 0.8 1.4 2.3
Purchase and Retirement of Debt 37.4 0.0 37.4
Other Financing Cash Flow 0.4 0.0 0.4
Total Cash From Financing Activities 38.7 1.4 40.1
Exchange Rate Effects 1.1 0.0 1.1
Net Change in Cash -4.8 -3.0 -7.9
Cash Taxes Paid 8.5 0.1 8.6
Cash Interest Paid 4.6 0.0 4.6