Summary

Other Scenarios:

Buyer: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 59.99 Market Cap.: 2.16B
Target: XenoPort, Inc. (XNPT) Last Price: 60.88 Market Cap.: 1.52B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 927
Biopharmaceuticals 379

- 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: 9)
  • Erdosteine
  • Delsym Orange/Delsym Grape (Dextromethorphan Polistirex)
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
Target (Total: 6)
  • XP19986 (R-Baclofen Prodrug)
  • XP20925 (Propofol Prodrug)
  • 1838262/XP13512 (Gabapentin Prodrug)
  • XP21279
Buyer

n/a
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 4)
  • Cardinal Health, Inc. (CAH)
  • UCB S.A.
  • MonoSol, LLC
  • Boehringer Ingelheim GmbH
Target (Total: 5)
  • Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
  • Cardinal Health, Inc. (CAH)
  • Patheon, Inc. (PTI:CA)
  • Heumann GmbH
Buyer (Total: 12)
  • Wal-Mart Stores, Inc. (WMT)
  • CVS Caremark Corporation (CVS)
  • Walgreen Company (WAG)
  • Target Corporation (TGT)
Target (Total: 1)
  • Astellas Pharma Inc. (ALPMF)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 463 141
Revenue Per Employee 952,726.8 1,007,725.0
Total Revenue 110.0 35.4
Total Expenses 63.8 21.2
Other Revenue 0.0 0.0
Cost of Revenue 28.5 0.0
SG&A Expense 29.9 4.5
Research & Development 6.3 16.8
Other Operating Expense 0.0 0.0
Operating Income 46.2 14.2
Unusual Income 0.0 0.0
LT Debt to Capital 0 0.02
Fwd P/E 34.69 67.97
Fwd P/Rev 5.08 15.25
Book Value 307.1 118.9
Curr Portion of LTD/Cap Lease 0.0 0.2

Individual Company Summary

Focused

Buyer

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

Target

Sector Pure-Play (): Healthcare > Biopharmaceuticals

Business Description

Buyer

Adams Respiratory Therapeutics, Inc., is a specialty pharmaceutical company focused on the late-stage development, commercialization and marketing of over-the-counter (OTC), and prescription pharmaceuticals for the treatment of respiratory disorders. The Company markets market six oral-solid OTC products for adults under its Mucinex brand, six products in its Mucinex line of products for children, two Mucinex nasal spray products, and two products under its Delsym brand. In July 2007, the Company expanded the Mucinex franchise with its first nasal spray product, Mucinex Full Force Nasal Spray. In August 2007, it also began to market a second nasal spray product, Mucinex Moisture Smart Nasal Spray.

Target

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 to improve the therapeutic benefits of drugs. The Company?s advanced product candidate is being evaluated in a Phase III clinical program for the treatment of restless leg syndrome (RLS). This product candidate has also completed a Phase IIa clinical trial for the management of post-herpetic neuralgia (PHN). Its second product candidate has generated positive data in a Phase IIa clinical trial for reducing the number of reflux episodes in patients with gastroesophageal reflux disease (GERD).

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 72.99 100
Operating Margin % 19.45 0.15
Quick Ratio 2.77 4.97
Current Ratio 4.26 5.04
Coverage Ratio 0 56.05
Total Assets 361.2 174.2
Return on Equity % 14.19 5.99
Return on Assets % 12.07 4.09
Cash+ ST Inv. Per Share 1.79 6.1
Total Debt 0.0 0.3
Total Debt to Equity % 0 0.22
Total Debt to Tangible Equity % 0 0.22
Debt to Asset % 0.00 0.15

Product Summary

Sector Buyer Target
Healthcare
Biopharmaceuticals
Digestive System
The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive 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.
  
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 Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Healthcare
Biopharmaceuticals
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:

  • XP19986 (R-Baclofen Prodrug)
  
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.

Target Products:

  • XP20925 (Propofol Prodrug)
 
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.

Target Products:

  • XP21279
  • 1838262/XP13512 (Gabapentin Prodrug)
  • XP19986 (R-Baclofen Prodrug)
  
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.

Target Products:

  • XP20925 (Propofol Prodrug)
  • XP21279 (Levodopa 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.

Target Products:

  • XP21510 (Branexamic Acid Prodrug)
  
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.

Target Products:

  • 1838262/XP13512 (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.

Buyer Products:

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

Buyer Products:

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

Buyer 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.

Buyer 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.

Buyer Products:

  • Mucinex SE (Guaifenesin Extended Release)
  • Humibid SE (Guaifenesin Extended Release)
  • Mucinex With Codeine (Guaifenesin/Codeine Combination Extended-Release)
  

- 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
  Wyeth n/a 54,717.260 12.29 12.14 2.50 2.58 4.38
Buyer
  The Procter & Gamble Company n/a 202,829.283 19.14 19.01 2.60 2.51 n/a
Johnson & Johnson n/a 178,744.902 16.90 14.37 2.93 2.86 n/a
Novartis AG (ADR) n/a 115,310.846 13.94 14.29 3.03 2.95 4.04
Bayer AG (ADR) n/a 60,061.987 8.29 15.86 1.31 1.43 n/a
Wyeth n/a 54,717.260 12.29 12.14 2.50 2.58 4.38
CVS Caremark Corporation n/a 52,518.244 23.60 18.95 0.79 0.70 n/a
Walgreen Company n/a 33,984.520 16.46 15.98 0.62 0.58 3.26
Schering-Plough Corporation n/a 30,807.112 15.76 14.94 2.65 2.70 2.35
Target
  Pfizer Inc. n/a 154,421.887 18.62 9.64 3.18 3.31 n/a
GlaxoSmithKline plc (ADR) n/a 129,213.735 12.21 12.17 2.87 2.89 12.60
Abbott Laboratories n/a 85,731.688 71.26 17.72 11.87 3.15 n/a
AstraZeneca plc (ADR) n/a 62,499.553 10.85 10.83 2.19 2.20 n/a
Eli Lilly & Co. n/a 57,555.042 25.80 14.54 3.25 3.18 5.48
Wyeth n/a 54,717.260 12.29 12.14 2.50 2.58 4.38
Teva Pharmaceutical Industries Ltd (ADR) n/a 33,753.520 18.33 19.29 3.71 3.71 12.51
Altana AG (ADR) n/a 3,541.994 5.23 n/a 1.38 n/a 1.53
Alpharma Inc. n/a 785.670 14.07 19.64 1.13 1.10 1.93
Acorda Therapeutics Inc. n/a 622.447 0.00 -17.71 17.29 16.29 10.26
DepoMed, Inc. n/a 171.953 11.89 5.87 2.63 3.52 8.74
IVAX Diagnostics, Inc. n/a 15.760 0.00 n/a 0.80 n/a 0.90
Access Pharmaceuticals, Inc. n/a 10.189 0.00 n/a 1,676.47 n/a n/a
Takeda Pharmaceutical Company Limited n/a 0.000 0.00 n/a 0.00 n/a n/a
Boehringer Ingelheim GmbH 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

- 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
Overlap
  Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Buyer
  Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
UCB S.A. n/a n/a n/a n/a n/a n/a n/a
MonoSol, 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
Target
  Teva Pharmaceutical Industries Ltd (ADR) n/a 33,753.520 18.33 19.29 3.71 3.71 12.51
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Patheon, Inc. n/a 295.436 0.00 n/a 0.44 n/a 1.60
Heumann GmbH 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

- 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
  Wal-Mart Stores, Inc. 10.00% 192,591.266 15.32 15.73 0.52 0.52 4.00
CVS Caremark Corporation 10.00% 52,518.244 23.60 18.95 0.79 0.70 n/a
Walgreen Company 10.00% 33,984.520 16.46 15.98 0.62 0.58 3.26
Target Corporation n/a 42,871.603 14.59 15.68 0.68 0.69 2.65
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Publix Super Markets (OLD) n/a 19,117.951 23.33 n/a 1.02 n/a 5.33
McKesson Corporation n/a 17,478.994 17.80 18.69 0.18 0.18 5.56
The Kroger Co. n/a 17,090.806 13.74 15.26 0.24 0.25 6.52
Safeway Inc. n/a 13,754.216 15.36 15.85 0.33 0.33 3.37
Sears Holdings Corporation n/a 13,626.014 11.22 18.42 0.26 0.28 2.41
AmerisourceBergen Corp. n/a 7,329.741 16.05 16.00 0.11 0.11 2.54
Rite Aid Corporation n/a 1,805.396 0.00 -8.24 0.08 0.08 n/a
Target
  Astellas Pharma Inc. 100.00% 0.000 0.00 n/a 0.00 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
Overlap
  Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Buyer
  Wal-Mart Stores, Inc. n/a 192,591.266 15.32 15.73 0.52 0.52 4.00
CVS Caremark Corporation n/a 52,518.244 23.60 18.95 0.79 0.70 n/a
Target Corporation n/a 42,871.603 14.59 15.68 0.68 0.69 2.65
Walgreen Company n/a 33,984.520 16.46 15.98 0.62 0.58 3.26
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Publix Super Markets (OLD) n/a 19,117.951 23.33 n/a 1.02 n/a 5.33
McKesson Corporation n/a 17,478.994 17.80 18.69 0.18 0.18 5.56
The Kroger Co. n/a 17,090.806 13.74 15.26 0.24 0.25 6.52
Safeway Inc. n/a 13,754.216 15.36 15.85 0.33 0.33 3.37
Sears Holdings Corporation n/a 13,626.014 11.22 18.42 0.26 0.28 2.41
AmerisourceBergen Corp. n/a 7,329.741 16.05 16.00 0.11 0.11 2.54
Rite Aid Corporation n/a 1,805.396 0.00 -8.24 0.08 0.08 n/a
Lipocine Inc. 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
MonoSol, LLC n/a n/a n/a n/a n/a n/a n/a
Target
  GlaxoSmithKline plc (ADR) n/a 129,213.735 12.21 12.17 2.87 2.89 12.60
Teva Pharmaceutical Industries Ltd (ADR) n/a 33,753.520 18.33 19.29 3.71 3.71 12.51
Cardinal Health, Inc. n/a 20,399.391 10.40 14.32 0.23 0.22 16.38
Patheon, Inc. n/a 295.436 0.00 n/a 0.44 n/a 1.60
Astellas Pharma Inc. n/a 0.000 0.00 n/a 0.00 n/a n/a
Heumann GmbH n/a n/a n/a n/a n/a n/a n/a
Xanodyne Pharmaceuticals, Inc. 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

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 351.4 91.2 442.6
Other Revenue 0.0 0.0 0.0
Total Revenue 351.4 91.2 442.6
Cost of Revenue 94.9 0.0 94.9
SG&A Expense 162.8 16.7 179.5
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 23.8 74.3 98.2
Interest Expense -1.1 0.0 -1.1
Other Operating Expense 2.7 0.0 2.7
Total Expenses 283.1 91.0 374.1
Operating Income 68.4 0.1 68.5
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 0.0 7.7 7.7
Other, Net 0.0 0.0 0.0
Income Before Taxes 68.4 7.9 76.2
Income Taxes 24.8 0.7 25.5
Income After Taxes 43.6 7.1 50.7
Net Income - Excl. Xord. Items 43.6 7.1 50.7
Net Income - Incl. Xord. Items 43.6 7.1 50.7
Income Avail. to Common 43.6 7.1 50.7
Share Items
Basic Avg. Shares Outstanding 35.8 24.9 60.7
Basic EPS - Excl. Xord. Items 1.22 0.29 0.84
Basic EPS - Incl. Xord. Items 1.22 0.29 0.84
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 37.2 26.2 63.3
F.D. EPS - Excl. Xord. Items 1.17 0.27 0.80
F.D. EPS - Incl. Xord. Items 1.17 0.27 0.80
Balance Sheet
Assets
Cash and Equivalents 32.8 23.9 56.7
ST Investments 33.7 135.7 169.3
Accounts Receivable 67.4 4.8 72.2
Inventory 55.9 0.0 55.9
Prepayments and Advances 7.9 0.0 7.9
Other Current Assets 8.1 2.1 10.1
Current Assets 205.8 166.4 372.2
PPE 24.6 0.0 24.6
Accum D&A -4.2 0.0 -4.2
PPE, Net 20.4 5.6 26.0
Goodwill & Intangibles 125.4 0.0 125.4
Long Term Investments 0.0 1.8 1.8
Note Receivable 0.0 0.4 0.4
Other Assets 0.0 0.0 0.0
Other LT Assets 9.7 0.0 9.7
Total Assets 361.2 174.2 535.4
Liabilities
Accounts Payable 0.0 0.0 0.0
Payable/Accrued 19.1 0.0 19.1
Accrued Expenses 11.6 16.1 27.7
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 0.0 0.2 0.2
Other (Current) Liabilities 17.5 16.7 34.2
Current Liab. 48.3 33.0 81.3
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
Deferred Taxes 2.9 0.0 2.9
Other LT Liab. 2.9 22.3 25.2
Total Liabilities 54.1 55.3 109.4
Shareholders Equity
Common Stock 0.4 0.0 0.4
Additional Paid in Capital 492.2 297.0 789.2
Retained Earnings -185.4 -178.5 -363.9
Other Equity -0.0 0.3 0.3
Total Equity 307.1 118.9 426.0
Total Liab. & Equity 361.2 174.2 535.4
Shares Outstanding 35.9 24.9 60.8
Cash Flow
Operating Cash Flow
CF Net Income 43.6 7.1 50.7
CF Depreciation 4.7 1.7 6.4
CF Deferred Taxes -6.9 0.0 -6.9
Other Non-Cash Items 10.9 2.3 13.2
Change in Working Capital -38.7 6.4 -32.3
Total Cash From Operating Activities 13.6 17.6 31.2
Investing Cash Flow (not calculated)
Capital Expenditures -8.7 -4.1 -12.8
Other Investing Cash Flows 2.9 -46.2 -43.3
Total Cash From Investing Activities -5.8 -50.3 -56.1
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 2.6 3.6 6.3
Purchase and Retirement of Debt -10.2 -0.6 -10.9
Other Financing Cash Flow 8.4 0.2 8.6
Total Cash From Financing Activities 0.8 3.2 4.0
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash 8.6 -29.5 -20.9
Cash Taxes Paid 15.9 0.0 15.9
Cash Interest Paid 0.3 0.1 0.4