Summary

Other Scenarios:

Buyer: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 38.66 Market Cap.: 1.35B
Target: BioMarin Pharmaceutical (BMRN) Last Price: 15.12 Market Cap.: 1.29B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 868
Biopharmaceuticals 326
Outsourced Services   67

- 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: 8)
  • Erdosteine
  • Delsym (Dextromethorphan Polistirex)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
Target (Total: 9)
  • 6R-BH4 (Tetrahydrobiopterin)
  • Aldurazyme (Laronidase)
  • Naglazyme (Galsulfase)
  • Phenoptin (Tetrahydrobiopterin)
Buyer

n/a
Target
  • Synapse Technologies NeuroTrans Brain Delivery

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Cardinal Health, Inc. (CAH)
Target (Total: 1)
  • Medicis Pharmaceutical Corporation (MRX)
Buyer (Total: 11)
  • Wal-Mart Stores, Inc. (WMT)
  • Walgreen Company (WAG)
  • CVS Corporation (CVS)
  • McKesson Corporation (MCK)
Target (Total: 5)
  • Cardinal Health, Inc. (CAH)
  • Caremark Rx, Inc. (CMX)
  • McKesson Corporation (MCK)
  • AmerisourceBergen Corp. (ABC)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 176 314
Revenue Per Employee 1,693,573.0 303,411.9
Total Revenue 52.8 23.4
Total Expenses 41.9 24.8
Other Revenue 0.0 13.8
Cost of Revenue 10.8 0.8
SG&A Expense 25.0 11.9
Research & Development 7.5 15.8
Other Operating Expense -4.2 0.0
Operating Income 11.0 -1.3
Unusual Income 0.0 -4.7
LT Debt to Capital n/a 88.25
Fwd P/E 21.47 -37.05
Fwd P/Rev 3.75 17.73
Book Value n/a 48.9
Curr Portion of LTD/Cap Lease n/a 6.7

Key Ratios

  Buyer Target
Gross Margin % 79.36 92.63
Operating Margin % 31.85 -64.43
Quick Ratio n/a 8.36
Current Ratio n/a 9.07
Coverage Ratio 0 0.19
Total Assets n/a 468.7
Return on Equity % n/a -85.05
Return on Assets % n/a -8.87
Cash+ ST Inv. Per Share n/a 3.6
Total Debt 0.0 374.0
Total Debt to Equity % n/a 765.06
Total Debt to Tangible Equity % n/a 2,713.41
Debt to Asset % n/a 79.80

Individual Company Summary

Focused

Buyer

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

Target

Focused (): *Healthcare > Biopharmaceuticals > Endocrinology/Metabolism > Intermediary Metabolism Disorders

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. During the fiscal year ended June 30, 2005, the Company marketed two OTC products, Mucinex SE and Mucinex DM, under its Mucinex brand. Mucinex SE is a long-acting, single-ingredient guaifenesin product. Guaifenesin is an expectorant that thins bronchial secretions and makes coughs more productive. Mucinex DM combines long-acting guaifenesin with the cough suppressant, dextromethorphan. In February 2005, Adams Respiratory Therapeutics, Inc. acquired the Humibid trademark and transferred its AlleRx product line in exchange for the Humibid name.

Target

BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions. Its product portfolio is comprised of three products and multiple investigational product candidates. The products include Aldurazyme (laronidase), Naglazyme (galsulfase) and Orapred (prednisolone sodium phosphate oral solution). Aldurazyme is being marketed in the United States, European Union and in other countries for the treatment of mucopolysaccharidosis I (MPS I). MPS I is a progressive and debilitating life-threatening genetic disease, which frequently results in death during childhood or early adulthood. In May 2005, the United States Food and Drug Administration (FDA) gave marketing approval for Naglazyme for the treatment of mucopolysaccharidosis VI (MPS VI), a debilitating life-threatening genetic disease. In January 2006, the European Commission granted marketing approval for Naglazyme in the European Union.

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Endocrinology/Metabolism
The Endocrinology/Metabolism Subsector includes therapeutics that treat metabolic disorders and conditions resulting from the dysfunction of hormone secreting glands.
  
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.
Wound Management
The Wound Management Subsector includes therapeutics that treat cuts, abrasions, and burns from trauma or diseases.
  
Outsourced 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
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:

  • 6R-BH4 (Tetrahydrobiopterin)
  
Endocrinology/Metabolism  
Intermediary Metabolism Disorders  
Lysosomal Storage Diseases  
Hurler Disease  
Enzyme Replacement Therapy
Therapeutics that treat Hurler's Disease by providing the missing enzyme that contributes to the disease symptoms.

Target Products:

  • Aldurazyme (Laronidase)
  
Maroteaux-Lamy Syndrome/Mucopolysaccharidosis VI  
Enzyme Replacement Therapy
Therapeutics that treat Maroteaux-Lamy Syndrome/Mucopolysaccharidosis VI by providing the missing enzyme that contributes to the disease symptoms.

Target Products:

  • Naglazyme (Galsulfase)
  
Scheie Disease  
Enzyme Replacement Therapy
Therapeutics that treat Scheie's Disease by providing the missing enzyme that contributes to the disease symptoms.

Target Products:

  • Aldurazyme (Laronidase)
  
Phenylketonuria (PKU)  
Enzyme Cofactors
Therapeutics that treat Phenylketonuria (PKU) by providing the missing enzyme cofactors that contribute to the disease symptoms.

Target Products:

  • Phenoptin (Tetrahydrobiopterin)
  
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:

  • Phenylase (Phenylalanine Ammonia Lyase)
  
Respiratory System
Lower Respiratory Tract Disorders (Lung Disorders)  
Asthma  
Prophylactic Treatments  
Steroidal Anti-Inflammatory Drugs (SAID)
Therapeutics that treat asthma by reducing inflammation in the lung passages with steroids.

Target Products:

  • Orapred (Prednisolone Sodium Phosphate Oral Solution)
  • Orapred ODT (Prednisolone Sodium Phosphate Orally Disintegrating Tablet)
  
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 (Dextromethorphan Polistirex)
  
Antitussives/Expectorants
Therapeutics that treat coughs and colds by suppressing coughs and helping ejection of the mucous.

Buyer Products:

  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Mucinex 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 (Guaifenesin Extended Release)
  
Wound Management  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of wounds in early stages of clinical research where human subject is involved.

Target Products:

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

Target Products:

  • Synapse Technologies NeuroTrans Brain Delivery
  

- 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
Buyer
  Pfizer Inc. n/a 205,327.254 18.93 14.10 4.34 4.32 9.64
The Procter & Gamble Company n/a 196,254.908 22.99 20.51 2.88 2.60 -7.51
Johnson & Johnson n/a 187,084.407 17.11 17.41 3.65 3.55 6.81
Novartis AG (ADR) n/a 137,035.489 24.16 18.96 3.92 3.70 3.69
Wyeth n/a 67,350.180 17.79 16.16 3.46 3.39 7.13
Bayer AG (ADR) n/a 35,845.087 17.65 16.23 1.01 1.13 -2.33
Schering-Plough Corporation n/a 31,670.684 43.09 28.80 3.17 3.09 4.27
Target
  Shire plc (ADR) n/a 7,974.791 n/a 28.81 4.72 4.33 9.70
StemCells, Inc. n/a 170.332 n/a n/a 849.50 n/a 2.93

- 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
  Cardinal Health, Inc. n/a 27,108.743 27.11 18.26 0.33 0.30 7.75
Target
  Medicis Pharmaceutical Corporation n/a 1,637.870 n/a 42.65 5.05 4.84 8.38

- 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
Overlap
  McKesson Corporation 10.00% 15,699.974 20.55 19.84 0.17 0.17 3.94
Cardinal Health, Inc. n/a 27,108.743 27.11 18.26 0.33 0.30 7.75
AmerisourceBergen Corp. n/a 8,955.507 24.52 21.06 0.15 0.15 5.41
Buyer
  Wal-Mart Stores, Inc. 10.00% 201,322.562 18.88 16.65 0.61 0.58 4.67
Walgreen Company 10.00% 47,275.483 28.35 26.91 1.03 0.99 4.83
CVS Corporation 10.00% 27,131.535 20.67 21.50 0.69 0.62 5.98
McKesson Corporation 10.00% 15,699.974 20.55 19.84 0.17 0.17 3.94
Target Corporation n/a 47,082.127 18.57 17.49 0.85 0.79 3.28
Cardinal Health, Inc. n/a 27,108.743 27.11 18.26 0.33 0.30 7.75
Sears Holdings Corporation n/a 24,780.317 21.00 18.70 0.47 0.48 3.95
The Kroger Co. n/a 16,385.988 16.69 15.58 0.26 0.25 6.65
Safeway Inc. n/a 13,400.244 19.57 17.30 0.34 0.33 4.40
AmerisourceBergen Corp. n/a 8,955.507 24.52 21.06 0.15 0.15 5.41
Rite Aid Corporation n/a 2,447.454 2.02 -452.00 0.14 0.14 3.18
Target
  Cardinal Health, Inc. n/a 27,108.743 27.11 18.26 0.33 0.30 7.75
Caremark Rx, Inc. n/a 24,073.257 23.93 23.76 0.69 0.66 -56.16
McKesson Corporation n/a 15,699.974 20.55 19.84 0.17 0.17 3.94
AmerisourceBergen Corp. n/a 8,955.507 24.52 21.06 0.15 0.15 5.41
Hospices Civils de Lyon 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
Buyer
  Wal-Mart Stores, Inc. n/a 201,322.562 18.88 16.65 0.61 0.58 4.67
Walgreen Company n/a 47,275.483 28.35 26.91 1.03 0.99 4.83
Target Corporation n/a 47,082.127 18.57 17.49 0.85 0.79 3.28
CVS Corporation n/a 27,131.535 20.67 21.50 0.69 0.62 5.98
Cardinal Health, Inc. n/a 27,108.743 27.11 18.26 0.33 0.30 7.75
Sears Holdings Corporation n/a 24,780.317 21.00 18.70 0.47 0.48 3.95
The Kroger Co. n/a 16,385.988 16.69 15.58 0.26 0.25 6.65
McKesson Corporation n/a 15,699.974 20.55 19.84 0.17 0.17 3.94
Safeway Inc. n/a 13,400.244 19.57 17.30 0.34 0.33 4.40
AmerisourceBergen Corp. n/a 8,955.507 24.52 21.06 0.15 0.15 5.41
Rite Aid Corporation n/a 2,447.454 2.02 -452.00 0.14 0.14 3.18
UCB S.A. n/a n/a n/a n/a n/a n/a n/a
Target
  Genzyme Corporation n/a 17,146.258 37.46 29.38 5.79 5.40 6.55
Serono S.A. (ADR) n/a 13,284.166 20.26 18.85 4.97 4.74 5.94
Medicis Pharmaceutical Corporation n/a 1,637.870 n/a 42.65 5.05 4.84 8.38
Alliant Pharmaceuticals, 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 239.1 25.2 264.4
Other Revenue 0.0 29.1 29.1
Total Revenue 239.1 54.3 293.4
Cost of Revenue 49.4 4.0 53.4
SG&A Expense 99.0 43.6 142.6
Depreciation & Amortization 0.0 2.0 2.0
Research & Development 18.9 54.6 73.5
Interest Expense 0.0 0.0 0.0
Other Operating Expense -4.3 0.0 -4.3
Unusual Expense (Income) 0.0 -15.0 -15.0
Total Expenses 163.0 89.3 252.3
Operating Income 76.2 -35.0 41.2
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 0.0 -6.6 -6.6
Other, Net 0.0 0.0 0.0
Income Before Taxes 76.2 -41.6 34.6
Income Taxes 29.8 0.0 29.8
Income After Taxes 46.4 -41.6 4.8
Net Income - Excl. Xord. Items 46.4 -41.6 4.8
Net Income - Incl. Xord. Items 46.4 -41.6 4.8
Income Avail. to Common 46.4 -41.6 4.8
Share Items
Basic Avg. Shares Outstanding 34.8 85.3 120.2
Basic EPS - Excl. Xord. Items 1.33 n/a 0.04
Basic EPS - Incl. Xord. Items 1.33 n/a 0.04
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 36.9 85.3 122.3
F.D. EPS - Excl. Xord. Items 1.26 n/a 0.04
F.D. EPS - Incl. Xord. Items 1.26 n/a 0.04
Balance Sheet
Assets
Cash and Equivalents n/a 286.0 286.0
ST Investments n/a 20.8 20.8
Accounts Receivable n/a 10.9 10.9
Inventory n/a 24.2 24.2
Other Current Assets n/a 2.8 2.8
Current Assets n/a 344.8 344.8
PPE n/a 75.4 75.4
Accum D&A n/a -23.7 -23.7
PPE, Net n/a 51.6 51.6
Goodwill & Intangibles n/a 35.1 35.1
Long Term Investments n/a 28.5 28.5
Other Assets n/a 0.0 0.0
Other LT Assets n/a 8.7 8.7
Total Assets n/a 468.7 468.7
Liabilities
Accounts Payable n/a 0.0 0.0
Payable/Accrued n/a 23.1 23.1
ST Debt n/a 0.0 0.0
Curr Port of LTD & Cap Lease Oblg n/a 6.7 6.7
Other (Current) Liabilities n/a 8.2 8.2
Current Liab. n/a 38.0 38.0
LT Debt n/a 367.3 367.3
Total LT Debt n/a 367.3 367.3
Other LT Liab. n/a 14.5 14.5
Total Liabilities n/a 419.8 419.8
Shareholders Equity
Common Stock n/a 0.1 0.1
Additional Paid in Capital n/a 623.0 623.0
Retained Earnings n/a -574.2 -574.2
Other Equity n/a -0.0 -0.0
Total Equity n/a 48.9 48.9
Total Liab. & Equity n/a 468.7 468.7
Shares Outstanding n/a 85.5 85.5
Cash Flow
Operating Cash Flow
CF Net Income n/a -41.6 -41.6
CF Depreciation n/a 11.5 11.5
CF Deferred Taxes n/a 0.0 0.0
Other Non-Cash Items n/a -5.4 -5.4
Change in Working Capital n/a -32.1 -32.1
Total Cash From Operating Activities n/a -67.6 -67.6
Investing Cash Flow (not calculated)
Capital Expenditures n/a -20.8 -20.8
Other Investing Cash Flows n/a 6.8 6.8
Total Cash From Investing Activities n/a -14.1 -14.1
Financing Cash Flow (not calculated)
Dividends Paid n/a 0.0 0.0
Purchase Or Sale of Stock n/a 196.0 196.0
Purchase and Retirement of Debt n/a 19.0 19.0
Other Financing Cash Flow n/a 0.0 0.0
Total Cash From Financing Activities n/a 350.5 350.5
Exchange Rate Effects n/a -0.0 -0.0
Net Change in Cash n/a 268.9 268.9
Cash Interest Paid n/a 2.5 2.5