Merger and Acquisition Scenario

Summary

Other Scenarios:

CELG - PFE
CELG - NVS
PFE - XNPT
NVS - XNPT

Buyer:	Celgene Corporation (CELG)	Last Price:	52.10	Market Cap.:	23.87B
Target:	XenoPort, Inc. (XNPT)	Last Price:	31.44	Market Cap.:	794.23M

Lines of Business Summary:

Celgene Corporation (CELG) competes in 1 industry and 23 product/service groups
XenoPort, Inc. (XNPT) competes in 1 industry and 7 product/service groups
A combined entity will have 1% Product/Service Group overlap
Celgene Corporation (CELG) has 2 and XenoPort, Inc. (XNPT) has 0 suppliers that rely on a material % of their business. They share 0 in common.
Celgene Corporation (CELG) has 4 and XenoPort, Inc. (XNPT) has 0 customers that derive significant revenue from each. They share 0 in common.

Product Summary:

Overlap & Complementary Sectors

Sector	Buyer	Target	# of Focused Companies
Healthcare			846
Biopharmaceuticals			368
Healthcare Services			142
Medical Devices			225

- 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: 29) Pharmion Innohep (Tinzaparin Sodium) PDA001 (Human Placenta-derived Stem Cells) CC-11006 Revlimid (Lenalidomide)	Target (Total: 5) XP19986 (R-Baclofen Prodrug) XP20925 (Propofol Prodrug) Solzira (Gabapentin Prodrug) XP21279 (Levodopa Prodrug)	Buyer LifebankUSA Placental And Cord Blood Stem Cell Bank Biovance Acelagraft Human Amnioyic Membrane Allograft Human Placental Derived Stem Cells (HPDSC)	Target n/a

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business

Buyer (Total: 29)

Pharmion Innohep (Tinzaparin Sodium)
PDA001 (Human Placenta-derived Stem Cells)
CC-11006
Revlimid (Lenalidomide)

Target (Total: 5)

XP19986 (R-Baclofen Prodrug)
XP20925 (Propofol Prodrug)
Solzira (Gabapentin Prodrug)
XP21279 (Levodopa Prodrug)

Buyer

LifebankUSA Placental And Cord Blood Stem Cell Bank
Biovance
Acelagraft Human Amnioyic Membrane Allograft
Human Placental Derived Stem Cells (HPDSC)

Target

n/a

Business Relationship Summary:

Top Key Suppliers	Top Key Customers
Buyer (Total: 8) GPC Biotech AG (ADR) (GPCB) Array BioPharma Inc. (ARRY) GlaxoSmithKline plc (ADR) (GSK) Siegfried Ltd.	Target (Total: 9) Gilead Sciences, Inc. (GILD) Teva Pharmaceutical Industries Ltd (ADR) (TEVA) Cardinal Health, Inc. (CAH) Patheon, Inc. (PTI:CA)	Buyer (Total: 6) Cardinal Health, Inc. (CAH) McKesson Corporation (MCK) CVS Caremark Corporation (CVS) AmerisourceBergen Corp. (ABC)	Target (Total: 3) GlaxoSmithKline plc (ADR) (GSK) Xanodyne Pharmaceuticals, Inc. Astellas Pharma Inc. (ALPMF)

Top Key Suppliers

Top Key Customers

Buyer (Total: 8)

GPC Biotech AG (ADR) (GPCB)
Array BioPharma Inc. (ARRY)
GlaxoSmithKline plc (ADR) (GSK)
Siegfried Ltd.

Target (Total: 9)

Gilead Sciences, Inc. (GILD)
Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
Cardinal Health, Inc. (CAH)
Patheon, Inc. (PTI:CA)

Buyer (Total: 6)

Cardinal Health, Inc. (CAH)
McKesson Corporation (MCK)
CVS Caremark Corporation (CVS)
AmerisourceBergen Corp. (ABC)

Target (Total: 3)

GlaxoSmithKline plc (ADR) (GSK)
Xanodyne Pharmaceuticals, Inc.
Astellas Pharma Inc. (ALPMF)

Key Financial Summary:

Key Metrics

	Buyer	Target
Number of Employees	1,685	181
Revenue Per Employee	1,406,137.0	108,363.6
Total Revenue	592.5	4.9
Total Expenses	432.9	30.2
Other Revenue	0.0	0.0
Cost of Revenue	70.5	0.0
SG&A Expense	168.6	6.5
Research & Development	160.9	23.7
Other Operating Expense	0.0	0.0
Operating Income	159.6	-25.4
Unusual Income	0.0	0.0
LT Debt to Capital	0	0
Fwd P/E	37.84	-12.41
Fwd P/Rev	10.80	18.57
Book Value	3,588.4	95.0
Curr Portion of LTD/Cap Lease	0.0	0.0

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Biopharmaceuticals > Oncology

Target

Focused (): Healthcare > Biopharmaceuticals > Neurology

Celgene Corporation is an integrated biopharmaceutical company. The Company is primarily engaged in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory-related diseases. The Company?s lead product is REVLIMID (lenalidomide) and THALOMID. REVLIMID was approved by the United States Food and Drug Administration (FDA), the European Commission, Swiss Agency for Therapeutic Products and Australian Therapeutic Goods Administration, for treatment in combination with dexamethasone for multiple myeloma patients who have received at least one prior therapy. THALOMID was approved by the FDA for treatment in combination with dexamethasone of patients with diagnosed multiple myeloma and is also approved for the treatment and suppression of cutaneous manifestations of erythema nodosum leprosum, an inflammatory complication of leprosy. In March 2008, Celgene Corporation completed the acquisition of Pharmion Corporation.

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. The Company focuses its development and commercialization efforts on treatments of central nervous system (CNS), disorders. Its product candidate, XP13512, is being evaluated for the treatment of restless legs syndrome (RLS), in a Phase III clinical program in the United States and has also completed a Phase IIa clinical trial for the management of post-herpetic neuralgia (PHN), in the United States.

Deal Summary

Key Ratios

	Buyer	Target
Gross Margin %	88.44	100
Operating Margin %	-58.41	-83.47
Quick Ratio	6.08	4.36
Current Ratio	6.74	4.53
Coverage Ratio	-0.09	-0.12
Total Assets	4,357.4	145.1
Return on Equity %	-36.48	-43.52
Return on Assets %	-30.04	-28.5
Cash+ ST Inv. Per Share	5.23	4.96
Total Debt	0.0	0.0
Total Debt to Equity %	0	0.02
Total Debt to Tangible Equity %	0	0.02
Debt to Asset %	0.00	0.01

Product Summary

Sector

Buyer

Target

Healthcare

Biopharmaceuticals

Cardiovascular System

The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.

Digestive System

The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive system.

Hematology

The Hematology Subsector includes therapeutics that treat blood-based diseases and disorders.

Immunology

The Immunology Subsector includes therapeutics that treat disorders affecting the immune system.

Infectious Diseases

The Infectious Diseases Subsector includes therapeutics that treat diseases caused by the invasion and reproduction of microorganisms in the body.

Musculoskeletal System

The Musculoskeletal System Subsector includes therapeutics that treat disorders of the bones, joints, ligaments, tendons, and soft tissue involved with them.

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.

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.

Surgery

The Surgery Subsector includes therapeutics that treat complications associated with surgical procedures.

Healthcare Services

Support Services

The Support Services Subsector is comprised of companies that provide non-medical services for managing, enhancing, facilitating, and enabling the healthcare delivery process.

Medical Devices

Cardiology

The Cardiology Subsector includes medical devices that diagnose, monitor, and treat diseases affecting the heart and proximal blood vessels. Common devices include vital sign monitors, cardiac defibrillators, pacemakers, and other surgical equipment.

Transfusion Medicine

The Transfusion Medicine Subsector includes medical devices and accessories that prepare or implement blood transfusion.

- 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

Vascular Disorders

Deep Vein Thrombosis (DVT)

Anticoagulating Agents (Anticoagulants)

Thrombin Inhibitors

Therapeutics that prevent or treat clots in blood vessels by preventing blood clots from forming.

Buyer Products:

Pharmion Innohep (Tinzaparin Sodium)

Thromboembolism

Anticoagulating Agents (Anticoagulants)

Thrombin Inhibitors

Therapeutics that treat the obstruction of a blood vessel by preventing blood clots from forming.

Buyer Products:

Pharmion Innohep (Tinzaparin Sodium)

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.

Buyer Products:

PDA001 (Human Placenta-derived Stem Cells)

Target Products:

XP20925 (Propofol Prodrug)

Hematology

Phase I/Phase II Clinical Stage Products

Therapeutics that are being investigated for the treatment of hematological disorders in early stages of clinical research where human subject is involved.

Buyer Products:

CC-11006
Revlimid (Lenalidomide)
Pharmion Oral Azacitidine

White Blood Cell (WBC) Disorders

Myelodysplastic Syndromes (MDS)

Antimetabolite Agents

Pyrimidine Analogs

Therapeutics that treat and manage rmyelodysplastic syndrome by interfering with the production of DNA.

Buyer Products:

Pharmion Vidaza (Azacitidine)

Immunomodulatory Agents

Therapeutics that treat myelodysplastic syndrome by stimulating the immune system.

Buyer Products:

Revlimid (Lenalidomide)

Immunology

Phase I/Phase II Clinical Stage Products

Therapeutics that are being investigated for the treatment of immune disorders in early stages of clinical research where human subject is involved.

Buyer Products:

Apremilast/FormerlyCC-10004 (Selective Cytokine Inhibitory Drugs)
CC-930 (Janus Kinase Inhibitor)

Research/Preclinical Stage Products

Therapeutics that are being investigated for the treatment of immune disorders in very early stages of research where no human subject is involved.

Buyer Products:

CC-13097
CC-15965
CC-16057 (Pleiotropic Pathway Modifiers)
PDA001 (Human Placenta-derived Stem Cells)

Infectious Diseases

Bacterial

Antibacterial Agents

Narrow Spectrum

Systemic

Leprosy

Erythema Nodosum Leprosum (ENL)

Immunomodulatory Agents

Therapeutics that treat a bacterial infection characterized by the formation of tender, red nodules on the front of the legs by stimulating the immune system.

Buyer Products:

Thalomid (Thalidomide)

Musculoskeletal System

Phase I/Phase II Clinical Stage Products

Therapeutics that are being investigated for the treatment of skeletal system disorders in early stages of clinical research where human subject is involved.

Buyer Products:

CC-4047 (Immunomodulatory Drug)
Apremilast/FormerlyCC-10004 (Selective Cytokine Inhibitory Drugs)

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:

Solzira (Gabapentin Prodrug)
XP19986 (R-Baclofen Prodrug)
XP21279 (Levodopa Prodrug)

Psychiatric Disorders

Childhood/Adolescent Disorders

Attention Deficit Disorder (ADD)/Attention Deficit Hyperactivity Disorder (ADHD)

Dopamine Receptor Blocking Agents

Therapeutics that treat attention deficit disorder by blocking the dopamine receptors.

Buyer Products:

Focalin XR (Refined D-Methylphenidate HCl)
Focalin (Refined D-Methylphenidate HCl)
Ritalin LA (Methylphenidate Hydrochloride)

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)

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)

Oncology

Hematology

Leukemia (White Blood Cell Cancer)

Lymphoid

Chronic

Lymphocytic (CLL)

Immunomodulatory Agents

Therapeutics that treat chronic lymphocytic leukemia by stimulating the immune system.

Buyer Products:

Revlimid (Lenalidomide)

Multiple Myeloma (Plasma Cell Cancer)

Immunomodulatory Agents

Therapeutics that treat multiple myeloma by stimulating the immune system.

Buyer Products:

Revlimid (Lenalidomide)
Thalomid (Thalidomide)

Palliative Agents

Alkylating Agents

Nitrogen Mustard Type

Therapeutics derived from mustard gas that treat and manage cancers of mature antibody producing white blood cells by interacting with DNA and inhibiting cell division but are not curative.

Buyer Products:

Alkeran (Melphalan Hydrochloride)

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:

CC-8490 (Benzopyran)
CC-4047 (Immunomodulatory Drug)
Focalin (Refined D-Methylphenidate HCl)
ACE-011
Revlimid (Lenalidomide)
Pharmion Oral Azacitidine
Pharmion Vidaza (Azacitidine)

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:

PDA001 (Human Placenta-derived Stem Cells)
CC-0227113 (Anti-Proliferative Agent)
CC-113
Ligase Inhibitors Program

Respiratory System/Thoracic

Lung Cancer

Small Cell Lung Cancer (SCLC)

Topoisomerase II Inhibitors

Therapeutics that treat and manage cancers of the small cells in the lung by inhibiting a specific enzyme, topoisomerase II, needed for transcription and replication of DNA.

Buyer Products:

Pharmion Amrubicin (Anthracycline)

Urology

Ovarian Cancer

Adenocarcinoma

Alkylating Agents

Nitrogen Mustard Type

Therapeutics derived from mustard gas that treat and manage cancer of cells lining the ovary by interacting with DNA and inhibiting cell division.

Buyer Products:

Alkeran (Melphalan Hydrochloride)

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:

Solzira (Gabapentin Prodrug)

Surgery

Musculoskeletal System

Deep Vein Thrombosis (DVT)

Anticoagulating Agents (Anticoagulants)

Thrombin Inhibitors

Therapeutics that treat vascular obstructions due to platelets and cell matter by blocking an enzyme involved in the clotting process.

Buyer Products:

Pharmion Innohep (Tinzaparin Sodium)

Research/Preclinical Stage Products

Therapeutics that are being investigated for the treatment of surgical complications in very early stages of research where no human subject is involved.

Buyer Products:

JNK 359 (Janus Kinase Inhibitor)

Healthcare Services

Support Services

Biological Specimen Storage

Services providing storage and maintenance for biological products such as donated blood, bone marrows and stem cells.

Buyer Products:

LifebankUSA Placental And Cord Blood Stem Cell Bank

Medical Devices

Cardiology

Surgical

General Procedure

Grafts

Patches

Allograft

A graft made of tissue harvested from another human being.

Buyer Products:

Biovance
Acelagraft Human Amnioyic Membrane Allograft

Transfusion Medicine

Stem Cell Therapy

Autologous stem cells that are harvested from the patient's own body and implant back into the patients for repair and healing.

Buyer Products:

Human Placental Derived Stem Cells (HPDSC)

- 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	Percent	Market Cap.	P/E Ratio (TTM)	Fwd P/E	P/R Ratio (TTM)	Fwd P/Rev	Price To Tang. Book Value
Overlap
	Pfizer Inc.	n/a	110,786.437	10.49	6.75	2.27	2.24	4.10
	Novartis AG (ADR)	n/a	106,264.412	14.06	11.85	2.51	2.43	3.61
	AstraZeneca plc (ADR)	n/a	54,571.274	8.92	7.55	1.73	1.68	n/a
	Eli Lilly & Co.	n/a	38,826.947	16.10	8.22	1.91	1.81	3.39
	Takeda Pharmaceutical Company Limited	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Buyer
	Johnson & Johnson	n/a	162,534.195	12.89	12.86	2.52	2.50	9.47
	Roche Holding Ltd. (ADR)	n/a	120,241.209	14.37	13.97	3.06	2.80	5.25
Target
	Pfizer Inc.	n/a	110,786.437	10.49	6.75	2.27	2.24	4.10
	Novartis AG (ADR)	n/a	106,264.412	14.06	11.85	2.51	2.43	3.61
	GlaxoSmithKline plc (ADR)	n/a	89,529.917	12.42	9.74	2.48	2.17	73.39
	Abbott Laboratories	n/a	81,287.381	17.88	15.47	2.82	2.69	27.73
	AstraZeneca plc (ADR)	n/a	54,571.274	8.92	7.55	1.73	1.68	n/a
	Wyeth	n/a	47,946.846	10.71	9.87	2.06	1.99	3.21
	Eli Lilly & Co.	n/a	38,826.947	16.10	8.22	1.91	1.81	3.39
	Teva Pharmaceutical Industries Ltd (ADR)	n/a	35,210.400	18.60	15.33	3.26	3.15	7.87
	Altana AG (ADR)	n/a	2,223.387	14.56	n/a	1.24	n/a	2.51
	Alpharma Inc.	n/a	1,940.573	17.00	109.58	2.98	2.81	4.31
	Acorda Therapeutics Inc.	n/a	683.393	n/a	-8.38	14.67	14.10	3.30
	DepoMed, Inc.	n/a	79.136	3.97	-3.04	2.52	2.47	1.82
	Avigen, Inc.	n/a	20.541	n/a	-0.64	n/a	0.65	0.44
	IVAX Diagnostics, Inc.	n/a	15.207	n/a	n/a	0.73	n/a	0.94
	Access Pharmaceuticals, Inc.	n/a	6.842	n/a	-0.75	25.52	5.21	n/a
	Takeda Pharmaceutical Company Limited	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
	Addex Pharmaceuticals	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
	GPC Biotech AG (ADR)		89.00%	42.731	n/a	n/a	2.30	n/a	1.18
Array BioPharma Inc.		14.90%	179.882	n/a	-1.36	6.43	7.13	22.36
GlaxoSmithKline plc (ADR)		n/a	89,529.917	12.42	9.74	2.48	2.17	73.39
Siegfried Ltd.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Royalty Pharma AG		n/a	n/a	n/a	n/a	n/a	n/a	n/a
The Rockefeller University		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Johnson Matthey plc		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Children's Medical Center Corporation		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Target
	Gilead Sciences, Inc.		n/a	40,781.730	22.11	21.98	8.15	7.70	9.79
Teva Pharmaceutical Industries Ltd (ADR)		n/a	35,210.400	18.60	15.33	3.26	3.15	7.87
Cardinal Health, Inc.		n/a	11,694.595	9.37	8.41	0.13	0.12	7.07
Patheon, Inc.		n/a	115.252	n/a	n/a	0.16	n/a	0.81
UPM Pharmaceuticals, Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Heumann GmbH		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Xcelience, Llc		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
Ajinomoto Co., Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a

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

GPC Biotech AG (ADR)

89.00%

42.731

n/a

2.30

n/a

1.18

Array BioPharma Inc.

14.90%

179.882

n/a

-1.36

6.43

7.13

22.36

GlaxoSmithKline plc (ADR)

n/a

89,529.917

12.42

9.74

2.48

2.17

73.39

Siegfried Ltd.

n/a

Royalty Pharma AG

n/a

The Rockefeller University

n/a

Johnson Matthey plc

n/a

Children's Medical Center Corporation

n/a

Target

Gilead Sciences, Inc.

n/a

40,781.730

22.11

21.98

8.15

7.70

9.79

Teva Pharmaceutical Industries Ltd (ADR)

n/a

35,210.400

18.60

15.33

3.26

3.15

7.87

Cardinal Health, Inc.

n/a

11,694.595

9.37

8.41

0.13

0.12

7.07

Patheon, Inc.

n/a

115.252

n/a

0.16

n/a

0.81

UPM Pharmaceuticals, Inc.

n/a

Heumann GmbH

n/a

Xcelience, Llc

n/a

Lonza Group Ltd.

n/a

Ajinomoto Co., Inc.

n/a

- Defined by the Company - Defined by Others

Key Customers

	Name	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.	14.20%	11,694.595	9.37	8.41	0.13	0.12	7.07
	McKesson Corporation	14.00%	9,555.303	8.93	8.49	0.09	0.09	3.65
	CVS Caremark Corporation	10.40%	41,550.078	13.58	11.49	0.49	0.46	n/a
	AmerisourceBergen Corp.	9.50%	4,897.459	19.55	9.76	0.07	0.07	n/a
	Novartis AG (ADR)	n/a	106,264.412	14.06	11.85	2.51	2.43	3.61
	EntreMed, Inc.	n/a	21.265	n/a	n/a	2.88	n/a	2.62
Target
	GlaxoSmithKline plc (ADR)	n/a	89,529.917	12.42	9.74	2.48	2.17	73.39
	Xanodyne Pharmaceuticals, Inc.	n/a	n/a	n/a	n/a	n/a	n/a	n/a
	Astellas Pharma Inc.	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
Overlap
	GlaxoSmithKline plc (ADR)		n/a	89,529.917	12.42	9.74	2.48	2.17	73.39
Buyer
	Novartis AG (ADR)		n/a	106,264.412	14.06	11.85	2.51	2.43	3.61
GlaxoSmithKline plc (ADR)		n/a	89,529.917	12.42	9.74	2.48	2.17	73.39
Sharp Corporation (ADR)		n/a	7,373.182	8.29	11.67	0.22	0.22	0.63
Array BioPharma Inc.		n/a	179.882	n/a	-1.36	6.43	7.13	22.36
Pharmacopeia, Inc.		n/a	29.862	n/a	-0.59	1.30	1.03	n/a
EntreMed, Inc.		n/a	21.265	n/a	n/a	2.88	n/a	2.62
PTC Therapeutics, Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Institute of Drug Technology Australia Limited		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Evotec AG (ADR)		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Siegfried Ltd.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Royalty Pharma AG		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Children's Medical Center Corporation		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Target
	GlaxoSmithKline plc (ADR)		n/a	89,529.917	12.42	9.74	2.48	2.17	73.39
Gilead Sciences, Inc.		n/a	40,781.730	22.11	21.98	8.15	7.70	9.79
Teva Pharmaceutical Industries Ltd (ADR)		n/a	35,210.400	18.60	15.33	3.26	3.15	7.87
Cardinal Health, Inc.		n/a	11,694.595	9.37	8.41	0.13	0.12	7.07
Patheon, Inc.		n/a	115.252	n/a	n/a	0.16	n/a	0.81
Xanodyne Pharmaceuticals, Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
UPM Pharmaceuticals, Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Astellas Pharma Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Heumann GmbH		n/a	n/a	n/a	n/a	n/a	n/a	n/a
Xcelience, Llc		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
Ajinomoto Co., Inc.		n/a	n/a	n/a	n/a	n/a	n/a	n/a

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

GlaxoSmithKline plc (ADR)

n/a

89,529.917

12.42

9.74

2.48

2.17

73.39

Buyer

Novartis AG (ADR)

n/a

106,264.412

14.06

11.85

2.51

2.43

3.61

GlaxoSmithKline plc (ADR)

n/a

89,529.917

12.42

9.74

2.48

2.17

73.39

Sharp Corporation (ADR)

n/a

7,373.182

8.29

11.67

0.22

0.63

Array BioPharma Inc.

n/a

179.882

n/a

-1.36

6.43

7.13

22.36

Pharmacopeia, Inc.

n/a

29.862

n/a

-0.59

1.30

1.03

n/a

EntreMed, Inc.

n/a

21.265

n/a

2.88

n/a

2.62

PTC Therapeutics, Inc.

n/a

Institute of Drug Technology Australia Limited

n/a

Evotec AG (ADR)

n/a

Siegfried Ltd.

n/a

Royalty Pharma AG

n/a

Children's Medical Center Corporation

n/a

Target

GlaxoSmithKline plc (ADR)

n/a

89,529.917

12.42

9.74

2.48

2.17

73.39

Gilead Sciences, Inc.

n/a

40,781.730

22.11

21.98

8.15

7.70

9.79

Teva Pharmaceutical Industries Ltd (ADR)

n/a

35,210.400

18.60

15.33

3.26

3.15

7.87

Cardinal Health, Inc.

n/a

11,694.595

9.37

8.41

0.13

0.12

7.07

Patheon, Inc.

n/a

115.252

n/a

0.16

n/a

0.81

Xanodyne Pharmaceuticals, Inc.

n/a

UPM Pharmaceuticals, Inc.

n/a

Astellas Pharma Inc.

n/a

Heumann GmbH

n/a

Xcelience, Llc

n/a

Lonza Group Ltd.

n/a

Ajinomoto Co., Inc.

n/a

- Defined by the Company - Defined by Others

Financials

	Buyer	Target	Combined Entity
Income Statement
Operating Items
Revenue	2,041.1	57.1	2,098.3
Other Revenue	0.0	0.0	0.0
Total Revenue	2,041.1	57.1	2,098.3
Cost of Revenue	235.9	0.0	235.9
SG&A Expense	618.5	24.1	642.6
Depreciation & Amortization	77.8	0.0	77.8
Research & Development	561.2	80.8	641.9
Interest Expense	0.0	0.0	0.0
Other Operating Expense	0.0	0.0	0.0
Unusual Expense (Income)	1,740.0	0.0	1,740.0
Total Expenses	3,233.4	104.8	3,338.2
Operating Income	-1,192.3	-47.7	-1,240.0
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng	101.6	5.8	107.5
Other, Net	4.0	0.0	4.0
Income Before Taxes	-1,103.8	-41.9	-1,145.6
Income Taxes	205.3	-0.5	204.8
Income After Taxes	-1,309.1	-41.4	-1,350.4
Net Income - Excl. Xord. Items	-1,309.1	-41.4	-1,350.4
Net Income - Incl. Xord. Items	-1,309.1	-41.4	-1,350.4
Income Avail. to Common	-1,309.1	-41.4	-1,350.4
Share Items
Basic Avg. Shares Outstanding	456.5	25.2	481.7
Basic EPS - Excl. Xord. Items	n/a	n/a	-2.80
Basic EPS - Incl. Xord. Items	n/a	n/a	-2.80
Full Dilution Adjustment	0.0	0.0	0.0
Fully Diluted Shares Outstanding	468.9	25.2	494.1
F.D. EPS - Excl. Xord. Items	n/a	n/a	-2.73
F.D. EPS - Incl. Xord. Items	n/a	n/a	-2.73
Balance Sheet
Assets
Cash and Equivalents	1,517.1	21.7	1,538.8
ST Investments	937.0	103.4	1,040.4
Accounts Receivable	275.4	2.0	277.4
Inventory	90.3	0.0	90.3
Other Current Assets	204.3	5.0	209.3
Current Assets	3,024.2	132.1	3,156.3
Accum D&A	0.0	0.0	0.0
PPE, Net	234.4	11.1	245.5
Goodwill & Intangibles	985.9	0.0	985.9
Long Term Investments	18.2	0.0	18.2
Other Assets	0.0	0.0	0.0
Other LT Assets	94.7	1.9	96.6
Total Assets	4,357.4	145.1	4,502.5
Liabilities
Accounts Payable	54.9	5.0	60.0
Payable/Accrued	0.0	0.0	0.0
Accrued Expenses	329.7	12.9	342.6
ST Debt	0.0	0.0	0.0
Curr Port of LTD & Cap Lease Oblg	0.0	0.0	0.0
Other (Current) Liabilities	64.4	11.2	75.6
Current Liab.	449.0	29.2	478.2
LT Debt	0.0	0.0	0.0
Total LT Debt	0.0	0.0	0.0
Other LT Liab.	320.1	20.9	341.0
Total Liabilities	769.1	50.1	819.1
Shareholders Equity
Common Stock	4.6	0.0	4.6
Additional Paid in Capital	5,035.2	314.8	5,350.0
Retained Earnings	-1,259.7	-219.9	-1,479.6
Treasure Stock	-153.8	0.0	-153.8
Other Equity	-37.9	0.1	-37.9
Total Equity	3,588.4	95.0	3,683.4
Total Liab. & Equity	4,357.4	145.1	4,502.5
Shares Outstanding	458.1	25.3	483.4
Cash Flow
Operating Cash Flow
CF Net Income	332.0	-41.4	290.7
CF Depreciation	34.1	2.6	36.6
CF Amortization	61.1	0.0	61.1
CF Deferred Taxes	-15.1	0.0	-15.1
Other Non-Cash Items	104.0	10.2	114.2
Change in Working Capital	63.2	-4.6	58.6
Total Cash From Operating Activities	579.4	-33.3	546.1
Investing Cash Flow (not calculated)
Capital Expenditures	-46.3	-8.1	-54.4
Other Investing Cash Flows	112.8	34.6	147.5
Total Cash From Investing Activities	66.5	26.5	93.1
Financing Cash Flow (not calculated)
Dividends Paid	0.0	0.0	0.0
Purchase Or Sale of Stock	92.4	4.7	97.1
Purchase and Retirement of Debt	0.0	-0.2	-0.2
Other Financing Cash Flow	77.5	0.0	77.5
Total Cash From Financing Activities	169.9	4.5	174.4
Exchange Rate Effects	-59.2	0.0	-59.2
Net Change in Cash	756.5	-2.2	754.3
Cash Taxes Paid	27.6	0.8	28.3
Cash Interest Paid	2.0	0.0	2.1