Summary

Other Scenarios:

Buyer: Halozyme Therapeutics, Inc. (HALO) Last Price: 11.14 Market Cap.: 1.15B
Target: VIVUS, Inc. (VVUS) Last Price: 12.34 Market Cap.: 1.10B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 737
Biopharmaceuticals 336
Medical Devices 176
Outsourced Biomedical Services   40

- 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: 9)
  • PEGPH20 (Pegylated Recombinant Human Hyaluronidase Enzyme (rHuPH20))
  • HTI-501 (Human Lysosomal Proteinase)
  • Ultrafast Insulin (PH20 Hyaluronidase Enzyme/Insulin Combination)
  • HyQ (Immune Globulin/Human Hyaluronidase Enzyme)
Target (Total: 5)
  • Qnexa (Phentermine/Topiramate)
  • Luramist (Testosterone MDTS)
  • Avanafil (PDE5 Inhibitor)
  • VI-0521 (Phentermine/Topiramate)
Buyer
  • Hylenex (Recombinant Human Hyaluronidase (rHuPH20))
  • Enhanze Technology
Target
  • Actis

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 3)
  • Peregrine Pharmaceuticals (PPHM)
  • Cook Medical, Inc.
  • University of Connecticut
Target (Total: 0)

n/a
Buyer (Total: 4)
  • Roche Holding AG (RHHBY)
  • Baxter International Inc. (BAX)
  • ViroPharma Incorporated (VPHM)
  • Intrexon Corporation
Target (Total: 2)
  • Paladin Labs Inc. (PLDLF)
  • K-V Pharmaceutical Company (KV/B)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 102 43
Revenue Per Employee 911,868.9 0.0
Total Revenue 22.9 n/a
Total Expenses 17.8 8.9
Other Revenue n/a n/a
Cost of Revenue 0.0 n/a
SG&A Expense 4.3 5.2
Research & Development 13.5 3.7
Other Operating Expense n/a n/a
Operating Income 5.2 -8.9
Unusual Income n/a n/a
LT Debt to Capital n/a n/a
Fwd P/E -23.64 -26.60
Fwd P/Rev 37.84 21.36
Book Value 27.1 150.5
Curr Portion of LTD/Cap Lease n/a n/a

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Biopharmaceuticals

Target

Focused (): Healthcare > Biopharmaceuticals

Business Description

Buyer

Halozyme Therapeutics, Inc. (Halozyme) is a biopharmaceutical company. The Company is engaged in the development and commercialization of recombinant human enzymes, which either transiently modify tissue under the skin to facilitate injection of other therapies or correct diseased tissue structures for clinical benefit. Its existing products and its products under development are based on the family of human enzymes, known as hyaluronidases. Its operations include organizing and staffing its operating subsidiary, Halozyme, Inc.; acquiring, developing and securing its technology, and undertaking product development for its existing products and a range of product candidates, and supporting the development of partnered product candidates. In January 2011, the Company and Baxter Healthcare Corporation (Baxter) mutually agreed to terminate a partnership between Baxter and the Company, under which Baxter had global marketing rights for HYLENEX.

Target

VIVUS, Inc. is a biopharmaceutical company. The Company is engaged in development and commercialization of therapeutic drugs for large underserved markets, including obesity and related morbidities, such as sleep apnea and diabetes and men's sexual health. As of December 31, 2010, it had one investigational drug candidate, QNEXA, which has been submitted for approval as a treatment for weight loss in the United States and the European Union. In the United States, the Company received a complete response letter (CRL) for QNEXA in October 2010, which contained requests for additional information. As of December 31, 2010, the Company also had investigational drug candidates in various stages of clinical development for various indications related to obesity, erectile dysfunction and other diseases. On November 5, 2010, it sold certain rights and assets related to MUSE, transurethral alprostadil, for the treatment of erectile dysfunction to Meda AB.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 98.1 n/a
Operating Margin % -33.7 n/a
Quick Ratio 5.26 16.87
Current Ratio 5.58 17.23
Coverage Ratio n/a n/a
Total Assets 78.2 159.7
Return on Equity % -269.79 -143.82
Return on Assets % -93.29 -135.49
Cash+ ST Inv. Per Share 0.63 1.83
Total Debt 0.0 0.0
Total Debt to Equity % 0 0
Total Debt to Tangible Equity % 0 0
Debt to Asset % 0.00 0.00

Product Summary

Sector Buyer Target
Healthcare
Biopharmaceuticals
Dermatology
The Dermatology Subsector includes therapeutics that treat disorders affecting the skin.

Buyer Products:

  • PEGPH20 (Pegylated Recombinant Human Hyaluronidase Enzyme (rHuPH20))
  
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.
  
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.
  
Urology
The Urology Subsector includes therapeutics that treat diseases of the kidney, urinary tract, bladder, and the male reproductive system.
  
Weight Management
The Weight Management Subsectors includes therapeutics that treat and manage weight disorders.
  
Medical Devices
Anesthesiology
The Anesthesiology Subsector includes medical devices that deliver and monitor anesthetics.
  
Urology
The Urology Subsector includes medical that diagnose and treat urinary tract and male reproductive disorders.
  
Outsourced Biomedical Services  
Drug Delivery Technology
The Drug Delivery Technology Subsector includes companies that develop novel delivery methods for therapeutics.
  

- 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
Dermatology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of skin disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • HTI-501 (Human Lysosomal Proteinase)
  
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.

Buyer Products:

  • PEGPH20 (Pegylated Recombinant Human Hyaluronidase Enzyme (rHuPH20))
  • Ultrafast Insulin (PH20 Hyaluronidase Enzyme/Insulin Combination)

Target Products:

  • Qnexa (Phentermine/Topiramate)
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:

  • HyQ (Immune Globulin/Human Hyaluronidase Enzyme)
  
Immunology  
Immune Deficiency Disorders  
Primary Immunodeficiency Diseases  
Immunoglobulins/Hyaluronic Acid
Therapeutics that treat primary immunodeficiency diseases by providing therapeutic antibodies administered simultaneously with hyaluronic acid.

Buyer Products:

  • HyQ (Immune Globulin/Human Hyaluronidase Enzyme)
  
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.

Buyer Products:

  • Cinryze Subcutaneous (Human C1 Inhibitor)
  
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:

  • Qnexa (Phentermine/Topiramate)
  
Obstetrics/Gynecology
Child Birth/Pregnancy  
In vitro Fertilization  
Hyaluronidases
Enzymes used to prepare the eggs prior to in vitro fertilization.

Buyer Products:

  • Cumulase (Recombinant Human Hyaluronidase)
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of female reproductive disorders in early stages of clinical research where human subject is involved.

Target Products:

  • Luramist (Testosterone MDTS)
  
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.

Buyer Products:

  • PEGPH20 (Pegylated Recombinant Human Hyaluronidase Enzyme (rHuPH20))
  • Chemophase
  
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.

Buyer Products:

  • PEGPH20 (Pegylated Recombinant Human Hyaluronidase Enzyme (rHuPH20))
  
Urology  
Male Genital Disorders  
Penile  
Erectile Dysfunction (Impotence)  
Phosphodiesterase Type 5 Inhibitors (PDE-5 Inhibitors)
Therapeutics that inhibit the breakdown of phosphodiesters thereby increasing levels of Nitric Oxide which help in dilating the blood vessels in the penis.

Target Products:

  • Avanafil (PDE5 Inhibitor)
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of urological disorders in early stages of clinical research where human subject is involved.

Target Products:

  • Avanafil (PDE5 Inhibitor)
  
Weight Management  
Obesity  
Sympathomimetic Agents/Sodium Channel Blocking Agents/GABA Receptor Agonists
Therapeutics that suppress appetite by stimulating the adrenergic receptors and the GABA receptors.

Target Products:

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

Target Products:

  • VI-0521 (Phentermine/Topiramate)
  
Medical Devices
Anesthesiology  
Surgical  
General Procedure  
Viscoelastics
Materials that can be applied to the skin and decrease resistance of to injected drugs.

Buyer Products:

  • Hylenex (Recombinant Human Hyaluronidase (rHuPH20))
  
Urology  
Treatment  
Urologic  
Male Reproductive  
Erectile Dysfunction  
Venous Flow Controllers
Medical devices used to restrict efflux of the venous blood from the penis to generate and maintain an erection

Target Products:

  • Actis
  
Outsourced Biomedical Services  
Drug Delivery Technology  
Parenteral/Injectable Delivery  
Carrier Protein/Vector Based
Drug Delivery Technology used to deliver drugs using a carrier or vector protein.

Buyer Products:

  • Enhanze 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 Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Novo Nordisk A/S (ADR) n/a 63,552.972 10.16 22.28 1.56 4.79 1.77
Buyer
  Novo Nordisk A/S (ADR) n/a 63,552.972 10.16 22.28 1.56 4.79 1.77
Auxilium Pharmaceuticals, Inc. n/a 924.943 n/a -57.82 3.66 3.11 10.36
Target
  Johnson & Johnson n/a 177,026.868 13.56 12.70 1.82 2.66 n/a
The Procter & Gamble Company n/a 175,527.420 17.50 15.85 2.06 2.06 n/a
Pfizer Inc. n/a 164,234.752 11.51 9.35 1.63 2.66 n/a
Roche Holding AG n/a 152,639.104 26.49 11.90 2.23 3.24 n/a
Merck & Co., Inc. n/a 116,793.014 18.78 10.04 2.43 2.49 n/a
GlaxoSmithKline plc (ADR) n/a 113,660.167 10.19 11.73 3.15 2.52 n/a
Novo Nordisk A/S (ADR) n/a 63,552.972 10.16 22.28 1.56 4.79 1.77
Eli Lilly & Co. n/a 45,508.755 10.45 12.43 1.87 2.04 n/a
Medtronic, Inc. n/a 42,151.623 12.52 10.73 2.56 2.56 10.75
Allergan, Inc. n/a 26,768.911 28.66 20.90 4.94 4.60 13.02
Covidien plc n/a 25,510.910 13.41 12.17 2.18 2.17 n/a
Boston Scientific Corporation n/a 9,076.879 21.11 14.51 1.19 1.22 n/a
Warner Chilcott Plc n/a 4,171.921 43.54 4.42 1.50 1.62 n/a
Amylin Pharmaceuticals, Inc. n/a 2,504.990 n/a -11.22 3.85 3.68 n/a
Arena Pharmaceuticals, Inc. n/a 283.166 n/a -5.05 19.32 7.18 12.07
Orexigen Therapeutics, Inc. n/a 145.697 n/a -3.53 32.97 36.12 9.25
BioSante Pharmaceuticals, Inc. n/a 93.615 n/a -3.32 203.72 93.78 2.12
EnteroMedics Inc. n/a 61.121 n/a -3.96 n/a 10.55 3.05
Athersys, Inc. n/a 43.480 n/a -2.98 4.04 3.66 3.39
Independence Resources PLC n/a 10.092 n/a n/a 7.62 n/a 0.90
GI Dynamics n/a n/a n/a n/a n/a n/a n/a
Leptos Biomedical, Inc. 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 Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Peregrine Pharmaceuticals n/a 71.425 n/a -1.41 4.48 5.30 6.05
Cook Medical, Inc. n/a n/a n/a n/a n/a n/a n/a
University of Connecticut 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 Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Roche Holding AG 52.00% 152,639.104 26.49 11.90 2.23 3.24 n/a
Baxter International Inc. 42.00% 32,299.699 14.72 12.51 2.32 2.28 n/a
ViroPharma Incorporated n/a 2,324.652 14.10 17.82 3.59 3.77 9.53
Intrexon Corporation n/a n/a n/a n/a n/a n/a n/a
Target
  Paladin Labs Inc. n/a 896.923 13.95 n/a 4.36 n/a 3.07
K-V Pharmaceutical Company n/a 97.606 n/a n/a 2.26 n/a n/a

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Roche Holding AG n/a 152,639.104 26.49 11.90 2.23 3.24 n/a
Baxter International Inc. n/a 32,299.699 14.72 12.51 2.32 2.28 n/a
ViroPharma Incorporated n/a 2,324.652 14.10 17.82 3.59 3.77 9.53
Peregrine Pharmaceuticals n/a 71.425 n/a -1.41 4.48 5.30 6.05
Intrexon Corporation n/a n/a n/a n/a n/a n/a n/a
University of Connecticut n/a n/a n/a n/a n/a n/a n/a
Cook Medical, Inc. n/a n/a n/a n/a n/a n/a n/a
Target
  AmerisourceBergen Corp. n/a 10,393.305 15.27 13.87 0.13 0.13 3.58
Mitsubishi Tanabe Pharma Corp n/a n/a n/a n/a n/a n/a n/a
Gibraltar Laboratories, 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 57.2 n/a 57.2
Other Revenue n/a n/a n/a
Total Revenue 57.2 n/a 57.2
Cost of Revenue 1.1 n/a 1.1
SG&A Expense 16.9 23.0 39.8
Depreciation & Amortization n/a n/a n/a
Research & Development 58.6 25.3 83.9
Interest Expense n/a n/a n/a
Other Operating Expense n/a n/a n/a
Total Expenses 76.5 48.3 124.8
Operating Income -19.3 -48.3 -67.6
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 0.1 -5.8 -5.7
Other, Net 1.0 n/a 1.0
Income Before Taxes -18.2 -54.1 -72.3
Income Taxes n/a 0.0 0.0
Income After Taxes -18.2 -54.1 -72.3
Net Income - Excl. Xord. Items -18.2 -54.1 -72.3
Discontinued Operations n/a 12.9 12.9
Net Income - Incl. Xord. Items -18.2 -41.2 -59.4
Income Avail. to Common -18.2 -41.2 -59.4
Share Items
Basic Avg. Shares Outstanding 103.2 84.8 188.1
Basic EPS - Excl. Xord. Items -0.18 -0.66 -0.38
Basic EPS - Incl. Xord. Items -0.18 -0.50 -0.32
Full Dilution Adjustment n/a n/a n/a
Fully Diluted Shares Outstanding 105.0 84.8 189.8
F.D. EPS - Excl. Xord. Items -0.18 -0.66 -0.38
F.D. EPS - Incl. Xord. Items -0.18 -0.50 -0.31
Balance Sheet
Assets
Cash and Equivalents 66.3 71.5 137.8
ST Investments n/a 83.8 83.8
Accounts Receivable 6.2 0.9 7.1
Inventory 0.1 3.1 3.2
Prepayments and Advances 4.3 1.0 5.3
Other Current Assets n/a 0.0 0.0
Current Assets 77.0 159.4 236.4
PPE 6.7 n/a 6.7
Accum D&A -5.0 n/a -5.0
PPE, Net 1.3 0.3 1.6
Goodwill & Intangibles n/a n/a n/a
Other Assets n/a n/a n/a
Other LT Assets n/a n/a n/a
Total Assets 78.2 159.7 238.0
Liabilities
Accounts Payable 1.2 1.8 3.1
Payable/Accrued n/a n/a n/a
Accrued Expenses 8.9 5.1 13.9
ST Debt n/a n/a n/a
Other (Current) Liabilities 3.7 2.3 6.1
Current Liab. 13.8 9.3 23.0
LT Debt n/a n/a n/a
Total LT Debt n/a n/a n/a
Other LT Liab. 37.4 n/a 37.4
Total Liabilities 51.2 9.3 60.4
Shareholders Equity
Common Stock 0.1 0.1 0.2
Additional Paid in Capital 253.6 485.2 738.7
Retained Earnings -226.6 -334.8 -561.4
Other Equity n/a 0.0 0.0
Total Equity 27.1 150.5 177.5
Total Liab. & Equity 78.2 159.7 238.0
Shares Outstanding 103.6 88.9 192.5
Cash Flow
Operating Cash Flow
CF Net Income -18.2 -45.3 -63.5
CF Depreciation 1.2 0.1 1.3
CF Deferred Taxes n/a n/a n/a
Other Non-Cash Items 5.0 12.5 17.5
Change in Working Capital -16.2 -1.7 -17.9
Total Cash From Operating Activities -28.2 -34.4 -62.6
Investing Cash Flow (not calculated)
Capital Expenditures -0.6 -0.2 -0.8
Other Investing Cash Flows n/a 58.2 58.2
Total Cash From Investing Activities -0.6 58.0 57.4
Financing Cash Flow (not calculated)
Dividends Paid n/a n/a n/a
Purchase Or Sale of Stock 5.3 3.4 8.7
Purchase and Retirement of Debt n/a -23.0 -23.0
Other Financing Cash Flow n/a -4.8 -4.8
Total Cash From Financing Activities 5.3 -24.3 -19.1
Exchange Rate Effects n/a n/a n/a
Net Change in Cash -23.5 -0.7 -24.2
Cash Taxes Paid n/a 0.0 0.0
Cash Interest Paid n/a 6.0 6.0