Summary

Other Scenarios:

Buyer: Protherics PLC (ADR) (PTIL) Last Price: 14.24 Market Cap.: 3.45B
Target: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 41.75 Market Cap.: 1.45B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 866
Biopharmaceuticals 322
Veterinary Products and Services   7

- 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: 7)
  • Angiotensin Vaccine
  • CytoFab
  • Prolarix
  • CroFab [(Crotalidae Polyvalent Immune Fab (Ovine)]
Target (Total: 8)
  • Erdosteine
  • Delsym (Dextromethorphan Polistirex)
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
Buyer
  • Protherics Enfer TSE Diagnostic Kit
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Symbion Health Limited (SYHTY)
Target (Total: 1)
  • Cardinal Health, Inc. (CAH)
Buyer (Total: 0)

n/a
Target (Total: 11)
  • Wal-Mart Stores, Inc. (WMT)
  • Walgreen Company (WAG)
  • CVS Corporation (CVS)
  • McKesson Corporation (MCK)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 214 176
Revenue Per Employee 125,374.4 1,693,573.0
Total Revenue 13.2 76.0
Total Expenses 24.4 48.4
Other Revenue 0.0 0.0
Cost of Revenue 6.8 16.2
SG&A Expense 9.3 28.4
Research & Development 8.2 3.8
Other Operating Expense 0.0 -0.1
Operating Income -11.2 27.6
Unusual Income 0.0 0.0
LT Debt to Capital 12.91 0
Fwd P/E n/a 35.51
Fwd P/Rev n/a 6.65
Book Value 49.5 212.2
Curr Portion of LTD/Cap Lease 1.2 0.0

Key Ratios

  Buyer Target
Gross Margin % 36.24 80.01
Operating Margin % -53.83 31.04
Quick Ratio 1.83 7.76
Current Ratio 2.47 8.45
Coverage Ratio 0 0
Total Assets 113.0 239.4
Return on Equity % -36 20.25
Return on Assets % -15.78 17.95
Cash+ ST Inv. Per Share 1.91 4.17
Total Debt 8.6 0.0
Total Debt to Equity % 17.33 0
Total Debt to Tangible Equity % 28.38 0
Debt to Asset % 7.59 0.00

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals

Target

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

Business Description

Buyer

Protherics PLC is a biopharmaceutical company engaged in the development, manufacture and sale of pharmaceutical products for the treatment of human diseases. The Company's core technology is focused on immunotherapeutics and oncology. Immunotherapeutics encompasses the use of antibodies to combat the effects of disease or poisoning. Protherics PLC has manufacturing facilities in Wales, Australia and Salt Lake City, Utah. On December 7, 2005, the Company licensed CytoFab, its product developed for the treatment of sepsis, to AstraZeneca Ireland Operations, a branch in Ireland of AstraZeneca UK Limited (AstraZeneca).

Target

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.

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Infectious Diseases
The Infectious Diseases Subsector includes therapeutics that treat diseases caused by the invasion and reproduction of microorganisms in the body.
  
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
  
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.
  
Toxicology
The Toxicology Subsector includes therapeutics that treat harmful effects from exposure to toxic substances; narcotics, nicotine and alcohol withdrawal therapeutics are also included in this sector.
  
Veterinary Products and Services  
Veterinary Diagnostics
The Veterinary Diganostics Subsector includes companies that manufacture veterinary diagnostics for the detection and monitoring of veterinary diseases.

Buyer Products:

  • Protherics Enfer TSE Diagnostic Kit
  

- 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  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of heart and circulatory system disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Angiotensin Vaccine
  
Infectious Diseases  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of infectious diseases in early stages of clinical research where human subject is involved.

Buyer Products:

  • CytoFab
  
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:

  • Prolarix
  
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.

Target Products:

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

Target Products:

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

Target 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.

Target Products:

  • Maximum Strength D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  • Mucinex D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  
Expectorants
Therapeutics that treat coughs and colds by helping in the ejection of mucous.

Target Products:

  • Mucinex SE (Guaifenesin Extended Release)
  • Humibid (Guaifenesin Extended Release)
  
Toxicology  
Animal Poisoning  
Snakes  
Immunoglobulins
Therapeutics that treat snake bites with target specific proteins that neutralize the poison.

Buyer Products:

  • CroFab [(Crotalidae Polyvalent Immune Fab (Ovine)]
  
Chemical Poisoning  
Digoxin  
Digoxin Binding Agents
Therapeutics that treat toxicity due to ingestion of excessive digoxin by competitively binding to digoxin, making them unavailable for binding at their site of action on cells in the body.

Buyer Products:

  • DigiFab [Digoxin Immune Fab (Ovine)]
  
Methotrexate  
Carboxypeptidase
Therapeutics that treat methotrexate toxicity by catalyzing its carboxyl groups.

Buyer Products:

  • Voraxaze
  
Veterinary Products and Services  
Veterinary Diagnostics
The Veterinary Diganostics Subsector includes companies that manufacture veterinary diagnostics for the detection and monitoring of veterinary diseases.

Buyer Products:

  • Protherics Enfer TSE Diagnostic Kit
  

- 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
  The Procter & Gamble Company n/a 198,167.970 21.82 20.11 2.90 2.64 -7.59
Pfizer Inc. n/a 197,233.738 18.27 13.50 4.17 4.14 9.26
Johnson & Johnson n/a 188,429.910 17.37 17.41 3.67 3.55 6.86
Novartis AG (ADR) n/a 134,289.621 23.59 18.57 3.84 3.66 3.61
Wyeth n/a 63,595.794 16.78 15.21 3.27 3.18 6.73
Bayer AG (ADR) n/a 37,210.919 19.10 16.63 1.04 1.15 6.75
Schering-Plough Corporation n/a 29,715.339 40.38 27.85 2.98 2.90 4.00

- 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
  Symbion Health Limited n/a 1,495.227 24.73 n/a 0.51 n/a 5.19
Target
  Cardinal Health, Inc. n/a 28,155.662 28.60 18.49 0.35 0.32 8.05

- 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
Target
  Wal-Mart Stores, Inc. 10.00% 185,424.314 17.39 15.34 0.56 0.53 4.30
Walgreen Company 10.00% 49,039.495 29.50 29.03 1.07 1.06 5.01
CVS Corporation 10.00% 27,821.529 20.95 22.77 0.71 0.67 6.13
McKesson Corporation 10.00% 15,589.221 20.81 19.55 0.17 0.16 3.92
Target Corporation n/a 42,718.437 17.06 16.02 0.77 0.73 2.97
Cardinal Health, Inc. n/a 28,155.662 28.60 18.49 0.35 0.32 8.05
Sears Holdings Corporation n/a 22,139.357 18.93 16.54 0.42 0.42 3.53
The Kroger Co. n/a 16,820.131 17.36 16.91 0.27 0.26 6.97
Safeway Inc. n/a 13,360.229 19.52 17.55 0.34 0.33 4.39
AmerisourceBergen Corp. n/a 8,802.317 24.36 20.75 0.15 0.15 5.31
Rite Aid Corporation n/a 2,357.591 2.43 n/a 0.14 0.14 3.07

- 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
  AstraZeneca PLC (ADR) n/a 98,768.323 18.17 16.47 3.97 3.83 9.59
Altana AG (ADR) n/a 7,780.441 13.43 13.22 1.75 n/a 4.21
Symbion Health Limited n/a 1,495.227 24.73 n/a 0.51 n/a 5.19
Beacon Pharmaceuticals Ltd. n/a n/a n/a n/a n/a n/a n/a
Cancer Research UK n/a n/a n/a n/a n/a n/a n/a
Enfer Scientific Ltd. n/a n/a n/a n/a n/a n/a n/a
Swedish Orphan AB n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. n/a 185,424.314 17.39 15.34 0.56 0.53 4.30
Walgreen Company n/a 49,039.495 29.50 29.03 1.07 1.06 5.01
Target Corporation n/a 42,718.437 17.06 16.02 0.77 0.73 2.97
Cardinal Health, Inc. n/a 28,155.662 28.60 18.49 0.35 0.32 8.05
CVS Corporation n/a 27,821.529 20.95 22.77 0.71 0.67 6.13
Sears Holdings Corporation n/a 22,139.357 18.93 16.54 0.42 0.42 3.53
The Kroger Co. n/a 16,820.131 17.36 16.91 0.27 0.26 6.97
McKesson Corporation n/a 15,589.221 20.81 19.55 0.17 0.16 3.92
Safeway Inc. n/a 13,360.229 19.52 17.55 0.34 0.33 4.39
AmerisourceBergen Corp. n/a 8,802.317 24.36 20.75 0.15 0.15 5.31
Rite Aid Corporation n/a 2,357.591 2.43 n/a 0.14 0.14 3.07
UCB S.A. 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 33.3 225.4 258.7
Other Revenue 0.0 0.0 0.0
Total Revenue 33.3 225.4 258.7
Cost of Revenue 21.2 45.1 66.3
SG&A Expense 17.3 99.4 116.7
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 12.7 14.2 26.9
Interest Expense 0.0 -3.1 -3.1
Other Operating Expense 0.0 -0.1 -0.1
Total Expenses 51.2 155.4 206.7
Operating Income -17.9 70.0 52.0
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -0.1 0.0 -0.1
Other, Net 0.0 0.0 0.0
Income Before Taxes -18.0 70.0 52.0
Income Taxes -0.1 27.0 26.9
Income After Taxes -17.8 43.0 25.1
Net Income - Excl. Xord. Items -17.8 43.0 25.1
Net Income - Incl. Xord. Items -17.8 43.0 25.1
Preferred Dividends 0.0 -82.0 -82.0
Income Avail. to Common -17.8 -39.0 -56.9
Share Items
Basic Avg. Shares Outstanding 25.1 34.4 59.4
Basic EPS - Excl. Xord. Items n/a n/a 0.42
Basic EPS - Incl. Xord. Items n/a n/a 0.42
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 25.1 36.8 61.8
F.D. EPS - Excl. Xord. Items n/a n/a 0.41
F.D. EPS - Incl. Xord. Items n/a n/a 0.41
Balance Sheet
Assets
Cash and Equivalents 47.8 133.6 181.4
ST Investments 0.0 19.7 19.7
Accounts Receivable 9.8 41.5 51.3
Inventory 20.5 2.1 22.5
Prepayments and Advances 0.0 9.9 9.9
Other Current Assets 0.0 5.4 5.4
Current Assets 78.1 212.1 290.2
PPE 0.0 4.8 4.8
Accum D&A 0.0 -0.6 -0.6
PPE, Net 15.2 4.2 19.5
Goodwill & Intangibles 19.3 5.3 24.6
Other Assets 0.0 0.0 0.0
Other LT Assets 0.4 17.7 18.1
Total Assets 113.0 239.4 352.4
Liabilities
Accounts Payable 29.6 11.3 40.9
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 0.0 11.8 11.8
ST Debt 0.1 0.0 0.1
Curr Port of LTD & Cap Lease Oblg 1.2 0.0 1.2
Other (Current) Liabilities 0.8 2.0 2.8
Current Liab. 31.6 25.1 56.7
LT Debt 5.1 0.0 5.1
Capitalized Lease Obligations 2.3 0.0 2.3
Total LT Debt 7.3 0.0 7.3
Other LT Liab. 24.6 2.0 26.6
Total Liabilities 63.5 27.1 90.6
Shareholders Equity
Common Stock 9.7 0.3 10.1
Additional Paid in Capital 163.1 461.1 624.2
Retained Earnings -122.9 -249.2 -372.1
Other Equity -0.4 0.0 -0.4
Total Equity 49.5 212.2 261.8
Total Liab. & Equity 113.0 239.4 352.4
Shares Outstanding 25.9 34.7 60.6
Cash Flow
Operating Cash Flow
CF Net Income -17.9 43.0 25.1
CF Depreciation 2.6 1.3 3.9
CF Amortization 0.2 0.0 0.2
CF Deferred Taxes 0.0 3.0 3.0
Other Non-Cash Items 1.6 6.1 7.8
Change in Working Capital 37.1 -12.5 24.5
Total Cash From Operating Activities 23.6 40.8 64.4
Investing Cash Flow (not calculated)
Capital Expenditures -3.7 -3.7 -7.5
Other Investing Cash Flows 1.3 -35.6 -34.2
Total Cash From Investing Activities -2.4 -39.3 -41.7
Financing Cash Flow (not calculated)
Dividends Paid 0.0 -45.0 -45.0
Purchase Or Sale of Stock 15.1 115.2 130.3
Purchase and Retirement of Debt -1.1 0.0 -1.1
Other Financing Cash Flow -0.7 15.6 14.9
Total Cash From Financing Activities 13.0 85.8 98.8
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash 34.2 87.3 121.5
Cash Taxes Paid 0.1 7.7 7.8
Cash Interest Paid 0.7 0.0 0.7