Summary

Other Scenarios:

Buyer: Dendreon Corporation (DNDN) Last Price: 19.39 Market Cap.: 1.61B
Target: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 38.66 Market Cap.: 1.37B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 873
Biopharmaceuticals 335

- 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)
  • rNAPc2 (Recombinant Nematode Anticoagulant Protein c2)
  • Provenge (Sipuleucel-T)
  • Neuvenge (Lapuleucel-T)
  • Serine Protease Inhibitors
Target (Total: 9)
  • Erdosteine
  • Delsym (Dextromethorphan Polistirex)
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
Buyer

n/a
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Akzo Nobel N.V. (ADR) (AKZOY)
Target (Total: 3)
  • Cardinal Health, Inc. (CAH)
  • UCB S.A.
  • Boehringer Ingelheim GmbH
Buyer (Total: 2)
  • Genentech, Inc. (DNA)
  • Amgen, Inc. (AMGN)
Target (Total: 4)
  • Wal-Mart Stores, Inc. (WMT)
  • CVS/Caremark Corporation (CVS)
  • Walgreen Company (WAG)
  • McKesson Corporation (MCK)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 232 496
Revenue Per Employee 1,499.8 2,111,996.0
Total Revenue 0.1 110.6
Total Expenses 24.0 91.2
Other Revenue 0.0 0.0
Cost of Revenue 0.0 26.6
SG&A Expense 6.9 56.0
Research & Development 17.1 6.7
Other Operating Expense 0.0 2.7
Operating Income -23.9 19.4
Unusual Income 0.0 0.0
LT Debt to Capital 11.93 0
Fwd P/E -16.21 40.17
Fwd P/Rev 325.29 3.92
Book Value 125.7 261.2
Curr Portion of LTD/Cap Lease 6.7 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals > Oncology

Target

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

Business Description

Buyer

Dendreon Corporation (Dendreon) is a biotechnology company focused on the discovery, development and commercialization of therapeutics that harness the immune system to fight cancer. Dendreon?s most advanced product candidate is Provenge (sipuleucel-T), an active cellular immunotherapy that has completed two Phase III trials for the treatment of asymptomatic, metastatic, androgen-independent prostate cancer. On August 24, 2006, the Company submitted the clinical and non-clinical sections of its biologics license application (BLA) and on November 9, 2006, the Company submitted the chemistry, manufacturing and controls (CMC) section, completing its submission of its BLA to the United States Food and Drug Administration (FDA) for Provenge. On January 12, 2007, the FDA accepted the Company?s BLA filing and assigned Priority Review status for Provenge.

Target

Adams Respiratory Therapeutics, Inc. is a specialty pharmaceutical company focused on late-stage development, commercialization and marketing of over-the-counter (OTC) and prescription pharmaceuticals for the treatment of respiratory disorders. The Company markets three OTC products under its Mucinex brand, one product under its Humibid brand, two products under Delsym brand and four products under Children's Mucinex line of products. In June 2006, the Company acquired the United States marketing and sales rights to Delsym from UCB, Inc. (UCB). Delsym is an OTC 12-hour liquid cough suppressant.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 100 74.85
Operating Margin % -35,661.54 25.32
Quick Ratio 5.21 1.92
Current Ratio 5.39 2.98
Coverage Ratio -0.04 0
Total Assets 163.6 313.0
Return on Equity % -72.9 19.91
Return on Assets % -56 16.61
Cash+ ST Inv. Per Share 1.41 1.22
Total Debt 23.8 0.0
Total Debt to Equity % 18.89 0
Total Debt to Tangible Equity % 18.89 0
Debt to Asset % 14.51 0.00

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
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.
  

- 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.

Buyer Products:

  • rNAPc2 (Recombinant Nematode Anticoagulant Protein c2)
  
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:

  • rNAPc2 (Recombinant Nematode Anticoagulant Protein c2)
  • Provenge (Sipuleucel-T)
  • Neuvenge (Lapuleucel-T)
  
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:

  • Serine Protease Inhibitors
  • Trp-p8 Monoclonal Antibodies
  • CA-9 (Carbonic Anhydrase 9 Antigen)
  • Carcinoembryonic Antigen (CEA) Vaccine
  • Trp-p8 Vaccine
  • rNAPc2 (Recombinant Nematode Anticoagulant Protein c2)
  • Trp-p8 Small Molecule
  
Urology  
Prostate Cancer  
Metastatic  
Vaccines
Therapeutics that treat prostate cancers that have spread beyond the initial tumor by eliciting a specific immune response.

Buyer Products:

  • Provenge (Sipuleucel-T)
  
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:

  • Guaifenesin Combination Extended-Release Product
  • Mucinex SE (Guaifenesin Extended Release)
  • Humibid SE (Guaifenesin 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
Buyer
  MannKind Corporation n/a 1,047.447 n/a -3.61 10,641.31 23.15 2.73
Pharmion Corporation n/a 1,001.473 n/a -18.99 4.09 3.93 n/a
GPC Biotech AG (ADR) n/a 987.374 n/a n/a 32.58 n/a 11.06
Cell Genesys, Inc. n/a 285.207 n/a -2.26 209.19 14.60 6.55
Cerus Corporation n/a 200.661 n/a -5.36 5.64 9.65 1.99
IDM Pharma Inc. n/a 160.524 n/a n/a 14.22 n/a 39.53
Cyclacel Pharmaceuticals Inc. n/a 159.179 n/a -4.83 411.11 104.09 3.11
Antigenics, Inc. n/a 138.098 n/a n/a 199.39 n/a n/a
Pro-Pharmaceuticals, Inc. n/a 33.503 n/a n/a n/a n/a n/a
AVAX Technologies, Inc. n/a 18.764 n/a n/a 22.14 n/a 12.54
Therion Biologics Corporation n/a n/a n/a n/a n/a n/a n/a
Target
  The Procter & Gamble Company n/a 196,524.343 20.03 20.46 2.62 2.56 n/a
Pfizer Inc. n/a 191,640.502 10.30 12.50 3.90 3.99 n/a
Johnson & Johnson n/a 186,667.352 18.09 15.92 3.37 3.09 n/a
Novartis AG (ADR) n/a 137,235.137 25.15 17.27 3.60 3.62 3.39
Wyeth n/a 76,653.715 17.70 16.19 3.67 3.47 n/a
CVS/Caremark Corporation n/a 54,932.492 40.54 19.52 1.25 0.73 10.16
Bayer AG (ADR) n/a 53,708.775 23.37 17.64 1.36 1.26 n/a
Schering-Plough Corporation n/a 49,090.261 39.31 26.11 4.46 4.09 6.36

- 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
  Akzo Nobel N.V. (ADR) n/a 22,972.082 13.88 16.37 1.25 1.52 5.06
Target
  Cardinal Health, Inc. n/a 28,320.872 20.98 20.85 0.33 0.32 8.18
UCB S.A. 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

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
  Genentech, Inc. n/a 85,742.338 35.76 30.89 8.46 7.32 10.23
Amgen, Inc. n/a 73,874.670 24.14 15.36 5.01 4.86 15.38
Target
  Wal-Mart Stores, Inc. 10.00% 198,952.927 17.63 15.16 0.57 0.52 4.16
CVS/Caremark Corporation 10.00% 54,932.492 40.54 19.52 1.25 0.73 10.16
Walgreen Company 10.00% 44,705.141 22.75 21.52 0.88 0.82 4.23
McKesson Corporation 10.00% 17,723.820 20.23 20.92 0.19 0.19 4.17

- 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
  Genentech, Inc. n/a 85,742.338 35.76 30.89 8.46 7.32 10.23
Amgen, Inc. n/a 73,874.670 24.14 15.36 5.01 4.86 15.38
Bayer AG (ADR) n/a 53,708.775 23.37 17.64 1.36 1.26 n/a
Akzo Nobel N.V. (ADR) n/a 22,972.082 13.88 16.37 1.25 1.52 5.06
Nuvelo, Inc. n/a 207.347 n/a -3.06 53.34 55.00 3.25
Mayo Foundation for Medical Education and Research n/a n/a n/a n/a n/a n/a n/a
The American Red Cross n/a n/a n/a n/a n/a n/a n/a
Progenitor Cell Therapy, LLC. n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. n/a 198,952.927 17.63 15.16 0.57 0.52 4.16
CVS/Caremark Corporation n/a 54,932.492 40.54 19.52 1.25 0.73 10.16
Target Corporation n/a 50,446.848 18.10 16.01 0.85 0.77 3.23
Walgreen Company n/a 44,705.141 22.75 21.52 0.88 0.82 4.23
Cardinal Health, Inc. n/a 28,320.872 20.98 20.85 0.33 0.32 8.18
Sears Holdings Corporation n/a 27,642.917 18.55 17.92 0.52 0.56 3.64
The Kroger Co. n/a 20,946.227 18.77 18.01 0.32 0.31 7.67
McKesson Corporation n/a 17,723.820 20.23 20.92 0.19 0.19 4.17
Safeway Inc. n/a 15,835.776 17.55 18.27 0.39 0.38 4.38
AmerisourceBergen Corp. n/a 9,723.267 19.72 20.05 0.15 0.15 2.37
Rite Aid Corporation n/a 3,370.437 n/a -41.67 0.19 0.15 4.07
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
Albertsons LLC 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

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 0.3 329.6 329.8
Other Revenue 0.0 0.0 0.0
Total Revenue 0.3 329.6 329.8
Cost of Revenue 0.0 82.9 82.9
SG&A Expense 23.5 139.4 162.9
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 74.1 24.4 98.5
Interest Expense 0.0 -3.2 -3.2
Other Operating Expense 0.0 2.7 2.7
Total Expenses 97.6 246.1 343.8
Operating Income -97.4 83.4 -13.9
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 4.3 0.0 4.3
Other, Net 0.0 0.0 0.0
Income Before Taxes -91.6 83.4 -8.2
Income Taxes 0.0 31.4 31.4
Income After Taxes -91.6 52.0 -39.6
Net Income - Excl. Xord. Items -91.6 52.0 -39.6
Net Income - Incl. Xord. Items -91.6 52.0 -39.6
Income Avail. to Common -91.6 52.0 -39.6
Share Items
Basic Avg. Shares Outstanding 75.8 35.2 111.0
Basic EPS - Excl. Xord. Items n/a 1.48 -0.36
Basic EPS - Incl. Xord. Items n/a 1.48 -0.36
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 75.8 37.1 112.9
F.D. EPS - Excl. Xord. Items n/a 1.40 -0.35
F.D. EPS - Incl. Xord. Items n/a 1.40 -0.35
Balance Sheet
Assets
Cash and Equivalents 61.0 13.2 74.2
ST Investments 45.5 32.0 77.5
Accounts Receivable 0.0 52.4 52.4
Inventory 0.0 40.2 40.2
Prepayments and Advances 0.0 8.4 8.4
Other Current Assets 3.5 5.4 8.9
Current Assets 110.0 151.6 261.6
PPE 46.5 0.0 46.5
Accum D&A -15.9 0.0 -15.9
PPE, Net 30.5 16.4 46.9
Goodwill & Intangibles 0.0 129.3 129.3
Long Term Investments 14.8 0.0 14.8
Other Assets 0.0 0.0 0.0
Other LT Assets 8.3 15.7 24.0
Total Assets 163.6 313.0 476.7
Liabilities
Accounts Payable 1.5 31.2 32.7
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 10.9 16.7 27.6
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 6.7 0.0 6.7
Other (Current) Liabilities 1.3 3.0 4.3
Current Liab. 20.4 51.0 71.4
LT Debt 7.9 0.0 7.9
Capitalized Lease Obligations 9.1 0.0 9.1
Total LT Debt 17.0 0.0 17.0
Other LT Liab. 0.5 0.9 1.3
Total Liabilities 37.9 51.8 89.7
Shareholders Equity
Common Stock 0.1 0.4 0.4
Additional Paid in Capital 518.1 475.0 993.2
Retained Earnings -392.4 -214.2 -606.6
Other Equity -0.1 0.0 -0.1
Total Equity 125.7 261.2 386.9
Total Liab. & Equity 163.6 313.0 476.7
Shares Outstanding 81.3 35.2 116.6
Cash Flow
Operating Cash Flow
CF Net Income -91.6 52.0 -39.6
CF Depreciation 3.9 2.2 6.1
CF Deferred Taxes 0.0 -1.0 -1.0
Other Non-Cash Items 5.7 10.6 16.2
Change in Working Capital 1.1 -37.7 -36.5
Total Cash From Operating Activities -81.0 26.1 -54.8
Investing Cash Flow (not calculated)
Capital Expenditures -12.5 -138.0 -150.5
Other Investing Cash Flows 24.4 -32.1 -7.7
Total Cash From Investing Activities 11.9 -170.1 -158.2
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 42.4 3.0 45.4
Purchase and Retirement of Debt -5.2 0.0 -5.2
Other Financing Cash Flow 10.9 10.6 21.6
Total Cash From Financing Activities 48.1 13.6 61.7
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -21.0 -130.3 -151.3
Cash Taxes Paid 0.0 10.7 10.7
Cash Interest Paid 1.8 0.0 1.8