Summary

Other Scenarios:

Buyer: Protherics PLC (ADR) (PTIL) Last Price: 16.63 Market Cap.: 4.03B
Target: Endo Pharmaceuticals (ENDP) Last Price: 27.88 Market Cap.: 3.71B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 862
Biopharmaceuticals 317
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: 9)
  • Angiotensin Vaccine
  • CytoFab
  • Prolarix
  • VEGF Vaccine
Target (Total: 30)
  • Symmetrel (Amantadine Hydrochloride)
  • Endo Generics Butalbital/Aspirin/Codeine/Caffeine
  • Frova (Frovatriptan Succinate)
  • Endo Generics Carbidopa/Levodopa
Buyer
  • Protherics Enfer TSE Diagnostic Kit
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 2)
  • Symbion Health Limited (SYHTY)
  • Chesapeake Biological Laboratories
Target (Total: 8)
  • DURECT Corporation (DRRX)
  • Vernalis plc (ADR) (VNLS)
  • United Parcel Service (UPS)
  • SAP AG (ADR) (SAP)
Buyer (Total: 1)
  • U.S. Department of Defense
Target (Total: 1)
  • EpiCept Corporation (EPCT)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 211 710
Revenue Per Employee n/a 1,158,345.0
Total Revenue 18.8 205.0
Total Expenses 25.1 178.0
Other Revenue 0.0 0.0
Cost of Revenue 13.5 48.7
SG&A Expense 7.5 100.2
Research & Development 4.2 25.2
Other Operating Expense 0.0 0.0
Operating Income -6.3 27.0
Unusual Income 0.0 0.0
LT Debt to Capital 17.54 0
Fwd P/E n/a 16.63
Fwd P/Rev n/a 4.35
Book Value 41.8 911.3
Curr Portion of LTD/Cap Lease 1.0 0.0

Key Ratios

  Buyer Target
Gross Margin % 36.18 76.84
Operating Margin % -32.51 36.06
Quick Ratio 1.16 1.99
Current Ratio 2.22 2.31
Coverage Ratio 0.05 0.04
Total Assets 66.7 1,343.0
Return on Equity % -25.47 22.94
Return on Assets % -15.96 15.56
Cash+ ST Inv. Per Share 0.05 4.36
Total Debt 10.0 0.0
Total Debt to Equity % 23.87 0
Total Debt to Tangible Equity % 42.18 0
Debt to Asset % 14.96 0.00

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals

Target

Focused (): *Healthcare > Biopharmaceuticals > Pain Management

Business Description

Buyer

Protherics PLC (Protherics) is a biopharmaceutical company engaged in the development, manufacture and sale of pharmaceutical products largely for the treatment of human diseases. The Company's core technology is focused on immunotherapeutics and oncology. Protherics has four products generating revenues, one out licensed technology generating a royalty revenue stream and several product candidates in various stages of development. The Company has manufacturing practice compliant (GMP) manufacturing facilities in Wales, Australia and Salt Lake City, Utah, and administrative, clinical development and regulatory affairs facilities in Runcorn, Cheshire in the United Kingdom and Nashville, Tennessee, United States. In June 2003, the Company acquired Enact Pharma, which provided research and development pipeline and technology platforms.

Target

Endo Pharmaceuticals Holdings Inc. through it's wholly owned subsidiary, Endo Pharmaceuticals Inc. (Endo), is engaged in the sales, marketing, research and development of branded and generic pharmaceutical products primarily in the United States. Its portfolio of branded products includes Lidoderm, Percocet, Percodan, Frova, DepoDur and Zydone. The Company concentrates on generics that have one or more barriers to market entry, such as complex formulation, regulatory or legal challenges or difficulty in raw material sourcing. Its late-stage branded products pipeline includes two filed new drug applications (NDAs), three products in Phase III clinical trials and four products in Phase II clinical trials. During the year ended December 31, 2005, the branded products and the generic portfolio comprised approximately 71% and 29%, respectively, of the Company's net sales.

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.
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.
  
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
  
Viral  
RNA Viruses  
Orthomyxovirus  
Influenza A  
Viral Uncoating Inhibitors
Therapeutics that treat viral infections of the respiratory tract caused by Influenza A virus by preventing the removal of the protective shield around the viral genome, thus preventing the release of viral DNA into the host.

Target Products:

  • Symmetrel (Amantadine Hydrochloride)
  
Neurology  
Neurological Disorders  
Headaches  
Tension Type  
Barbiturates/Non-Steroidal Anti-Inflammatory Drugs (NSAID)/Opioids/Stimulants
Therapeutics that treat pain by depressing neural activity, preventing inflammation and fever, altering the perception of and emotional response to pain, and stimulating the central nervous system.

Target Products:

  • Endo Generics Butalbital/Aspirin/Codeine/Caffeine
  
Vascular (Migraine)  
Acute Treatments  
Selective Serotonin Receptor Agonists (Triptans)
Therapeutics that treat vascular/migraine headaches by stimulating the receptor that binds with the neurotransmitter, serotonin.

Target Products:

  • Frova (Frovatriptan Succinate)
  
Neuromuscular Disorders  
Parkinson`s Disease (PD)  
Adjunctive Treatments  
Dopamine Receptor Agonists
Therapeutics that assist in the treatment of the disorder involving nerve cell loss in portions of the brain that leads to uncontrolled tremors, abnormal posture and speech problems by stimulating dopamine receptors on neurons.

Target Products:

  • Endo Generics Carbidopa/Levodopa
  
Monoamine Oxidase (MAO) Inhibitors
Therapeutics that assist in the treatment of the disorder involving nerve cell loss in portions of the brain that leads to uncontrolled tremors, abnormal posture and speech problems by inhibiting the degradation of neurotransmitters.

Target Products:

  • Endo Generics Selegiline Hydrochloride
  
Serotonin/Dopamine Reuptake Inhibitors
Therapeutics that treat the disorder involving nerve cell loss in portions of the brain that leads to uncontrolled tremors, abnormal posture and speech problems by blocking the reabsorption of serotonin and dopamine in the brain.

Target Products:

  • Symmetrel (Amantadine Hydrochloride)
  
Psychiatric Disorders  
Schizophrenia  
Monoaminergic Antagonists
Therapeutics that treat schizophrenia by blocking the serotonin and dopamine receptors.

Target Products:

  • Moban (Molindone Hydrochloride)
  
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

Target Products:

  • Rapinyl (Sublingual Fentanyl)
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:

  • VEGF Vaccine
  • Metalloorganic
  
Pain Management  
Anesthesia  
General (Systemic)  
Adjunctive  
Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alters both the perception of pain as well as the emotional response to pain.

Target Products:

  • Numorphan (Oxymorphone Hydrochloride)
  • Nubain (Nalbuphine Hydrochloride)
  
Local  
Sodium Channel Blocking Agents
Therapeutics that treat pain by blocking the movement of sodium ions and thus the initiation and conduction of nerve impulses across the neuronal membrane.

Target Products:

  • Lidoderm (Lidocaine)
  • Synera Patch (Lidocaine/Tetracaine)
  
Narcotics  
Analgesics/Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alters the both the perception of pain as well as the emotional response to pain.

Target Products:

  • Endo Generics Endodan (Aspirin/Oxycodone)
  • Percocet (Acetaminophen/Oxycodone)
  • Endo Generics Endocet (Acetaminophen/Oxycodone)
  • Percodan (Aspirin/Oxycodone)
  • Zydone (Hydrocodone Bitartrate/Acetaminophen)
  
Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alter both the perception of pain as well as the emotional response to pain.

Target Products:

  • Endo Generics Hydromorphone Hydrochloride
  • Transdermal Fentanyl Patch
  • Depodur (Morphine Sulfate/Liposome)
  • DUROS Chronogesic (Sufentanil)
  • EN3218 (Oxycodone Extended-Release)
  • Endo Generics Morphine Sulfate Extended-Release Tablets
  • EN3203 (Oxymorphone Hydrochloride Immediate-Release)
  • EN3202 (Oxymorphone Hydrochloride Extended-Release)
  • Numorphan (Oxymorphone Hydrochloride)
  • Nubain (Nalbuphine Hydrochloride)
  • Rapinyl (Sublingual Fentanyl)
  
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:

  • Lidoderm (Lidocaine)
  • Ketoprofen Patch
  • LidoPAIN BP
  
Respiratory System  
Upper Respiratory Tract Disorders  
Coughs/Colds  
Anticholinergic Agents/Opioids
Therapeutics that treat coughs and colds by relieving pain and fever as well as suppressing cough.

Target Products:

  • Hycodan (Hydrocodone Bitartrate/Homatropine Methylbromide)
  
Antihistamines/Decongestants/Opioids
Therapeutics that treat coughs and colds by suppressing histamine-related inflammation, preventing congestion and altering both the perception and emotional response to pain.

Target Products:

  • Hycomine (Chlorpheniramine Maleate/Phenylephrine Hydrochloride/Acetaminophen/Hydrocodone Bitartrate)
  
Expectorants/Opioids
Therapeutics that treat coughs and colds by suppressing the cough and helping in the ejection of the mucous.

Target Products:

  • Hycotuss (Guaifenesin/Hydrocodone Bitartrate)
  
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
  
Substance Abuse  
Withdrawal  
Narcotics  
Opioid Antagonists
Therapeutics that treat narcotic addiction by blocking the effect of opioids.

Target Products:

  • Narcan (Naloxone Hydrocloride)
  
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
  Johnson & Johnson n/a 180,770.636 16.85 16.68 3.57 3.44 6.40
Pfizer Inc. n/a 168,529.969 14.26 11.53 3.31 3.33 9.47
Abbott Laboratories n/a 64,787.956 19.27 17.37 2.93 2.92 14.31
Tyco International Ltd. n/a 53,969.953 14.65 14.60 1.38 1.32 11.66
Elan Corporation, plc (ADR) n/a 6,441.401 n/a -20.10 12.34 10.78 -10.05
Mylan Laboratories Inc. n/a 4,288.706 25.86 17.07 3.41 3.18 7.40
Watson Pharmaceuticals, Inc. n/a 2,713.948 21.35 20.08 1.64 1.53 2.86
New River Pharmaceuticals, Inc. n/a 1,001.750 n/a -42.26 46.97 24.59 351.61
Ligand Pharmaceuticals n/a 785.094 n/a -39.81 4.12 4.14 -2.21
Impax Laboratories Inc. n/a 415.242 827.02 11.12 3.69 2.18 7.08
Pain Therapeutics, Inc. n/a 348.447 n/a 72.73 17.08 5.70 5.26
DURECT Corporation n/a 253.351 n/a -9.63 8.91 9.56 7.84
Acura Pharmaceuticals, Inc. n/a 214.208 n/a n/a n/a n/a -29.20
AVANIR Pharmaceuticals n/a 208.109 n/a -4.92 8.08 10.69 6.56
POZEN Inc. n/a 178.171 n/a -10.93 6.18 7.18 5.64
Gentium S.p.A. (ADR) n/a 164.531 n/a n/a 35.17 n/a 9.25
EpiCept Corporation n/a 65.972 n/a n/a 78.73 n/a n/a
Pharmos Corporation n/a 43.851 n/a -3.00 n/a n/a 1.03
BioDelivery Sciences International, Inc. n/a 25.091 n/a n/a 30.99 n/a -6.25
Purdue Pharma L.P. 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

- 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 1,616.118 26.73 n/a 0.55 n/a 5.61
Chesapeake Biological Laboratories n/a n/a n/a n/a n/a n/a n/a
Target
  DURECT Corporation 26.00% 253.351 n/a -9.63 8.91 9.56 7.84
Vernalis plc (ADR) 8.70% 245.799 n/a n/a 9.49 n/a -21.18
United Parcel Service n/a 85,384.356 21.72 19.81 1.93 1.79 6.34
SAP AG (ADR) n/a 59,929.068 30.83 27.14 5.29 5.09 9.48
Ventiv Health, Inc. n/a 781.426 16.93 20.04 1.28 1.07 -13.18
Penwest Pharmaceuticals n/a 399.857 n/a -11.78 64.54 62.15 6.78
Noven Pharmaceuticals, Inc. n/a 395.456 39.31 24.14 7.76 6.63 2.83
SkyePharma PLC (ADR) n/a 347.857 n/a n/a 2.87 n/a -3.14

- 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
  U.S. Department of Defense n/a n/a n/a n/a n/a n/a n/a
Target
  EpiCept Corporation n/a 65.972 n/a n/a 78.73 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
  AstraZeneca PLC (ADR) n/a 84,817.502 16.89 14.66 3.48 3.34 8.04
Altana AG (ADR) n/a 7,563.224 13.01 13.10 1.69 n/a 4.08
Symbion Health Limited n/a 1,616.118 26.73 n/a 0.55 n/a 5.61
Chesapeake Biological Laboratories n/a n/a n/a n/a n/a n/a n/a
Promega Corporation 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
  Novartis AG (ADR) n/a 121,700.319 21.44 17.02 3.63 3.40 3.61
United Parcel Service n/a 85,384.356 21.72 19.81 1.93 1.79 6.34
Tyco International Ltd. n/a 53,969.953 14.65 14.60 1.38 1.32 11.66
Ventiv Health, Inc. n/a 781.426 16.93 20.04 1.28 1.07 -13.18
Penwest Pharmaceuticals n/a 399.857 n/a -11.78 64.54 62.15 6.78
Noven Pharmaceuticals, Inc. n/a 395.456 39.31 24.14 7.76 6.63 2.83
SkyePharma PLC (ADR) n/a 347.857 n/a n/a 2.87 n/a -3.14
DURECT Corporation n/a 253.351 n/a -9.63 8.91 9.56 7.84
Vernalis plc (ADR) n/a 245.799 n/a n/a 9.49 n/a -21.18
EpiCept Corporation n/a 65.972 n/a n/a 78.73 n/a n/a
ZARS, Inc. n/a n/a n/a n/a n/a n/a n/a
Teikoku Seiyaku Pharmaceuticals n/a n/a n/a n/a n/a n/a n/a
Hind Healthcare Inc. n/a n/a n/a n/a n/a n/a n/a
Orexo AB 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 32.9 887.5 920.4
Other Revenue 0.0 0.0 0.0
Total Revenue 32.9 887.5 920.4
Cost of Revenue 21.0 205.5 226.5
SG&A Expense 13.8 257.8 271.6
Depreciation & Amortization 0.0 15.9 15.9
Research & Development 8.8 82.7 91.5
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 0.0 5.5 5.5
Total Expenses 43.6 567.4 611.1
Operating Income -10.7 320.0 309.3
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -0.5 13.7 13.2
Other, Net 0.0 0.0 0.0
Income Before Taxes -11.2 333.7 322.5
Income Taxes -0.6 124.7 124.2
Income After Taxes -10.6 209.0 198.4
Net Income - Excl. Xord. Items -10.6 209.0 198.4
Net Income - Incl. Xord. Items -10.6 209.0 198.4
Income Avail. to Common -10.6 209.0 198.4
Share Items
Basic Avg. Shares Outstanding 243.0 132.9 375.8
Basic EPS - Excl. Xord. Items -0.04 1.58 0.53
Basic EPS - Incl. Xord. Items -0.04 1.58 0.53
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 243.0 133.8 376.8
F.D. EPS - Excl. Xord. Items -0.04 1.57 0.53
F.D. EPS - Incl. Xord. Items -0.04 1.57 0.53
Balance Sheet
Assets
Cash and Equivalents 11.0 583.9 594.9
Accounts Receivable 7.5 237.8 245.3
Inventory 17.0 54.7 71.7
Prepayments and Advances 0.0 10.9 10.9
Other Current Assets 0.0 67.5 67.5
Current Assets 35.5 954.8 990.3
Accum D&A 0.0 0.0 0.0
PPE, Net 12.2 36.0 48.2
Goodwill & Intangibles 18.1 289.2 307.4
Note Receivable 0.0 49.9 49.9
Other Assets 0.0 0.0 0.0
Other LT Assets 0.8 13.1 13.9
Total Assets 66.7 1,343.0 1,409.7
Liabilities
Accounts Payable 13.9 109.8 123.7
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 0.0 177.7 177.7
ST Debt 0.1 0.0 0.1
Curr Port of LTD & Cap Lease Oblg 1.0 0.0 1.0
Other (Current) Liabilities 1.0 125.6 126.6
Current Liab. 16.0 413.0 429.0
LT Debt 6.7 0.0 6.7
Capitalized Lease Obligations 2.2 0.0 2.2
Total LT Debt 8.9 0.0 8.9
Deferred Taxes 0.0 15.2 15.2
Other LT Liab. 0.0 3.4 3.4
Total Liabilities 24.9 431.7 456.5
Shareholders Equity
Common Stock 8.6 1.3 10.0
Additional Paid in Capital 138.2 665.5 803.8
Retained Earnings -105.7 241.5 135.9
Other Equity 0.6 2.9 3.5
Total Equity 41.8 911.3 953.1
Total Liab. & Equity 66.7 1,343.0 1,409.7
Shares Outstanding 243.0 133.0 375.9
Cash Flow
Operating Cash Flow
CF Net Income -10.7 209.0 198.3
CF Depreciation 2.4 15.9 18.3
CF Amortization 0.2 0.0 0.2
CF Deferred Taxes 0.0 -28.0 -28.0
Other Non-Cash Items 1.7 254.6 256.3
Change in Working Capital 1.5 -33.7 -32.2
Total Cash From Operating Activities -4.9 417.8 412.9
Investing Cash Flow (not calculated)
Capital Expenditures -1.5 -34.1 -35.6
Other Investing Cash Flows 0.6 -1.7 -1.1
Total Cash From Investing Activities -1.0 -35.8 -36.7
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock -0.2 11.0 10.8
Purchase and Retirement of Debt -0.7 -2.7 -3.4
Other Financing Cash Flow -0.9 -111.1 -112.0
Total Cash From Financing Activities -2.6 -102.8 -105.4
Exchange Rate Effects -0.0 0.0 -0.0
Net Change in Cash -8.4 279.2 270.8
Cash Taxes Paid 0.0 8.2 8.2
Cash Interest Paid 0.9 1.0 1.9