Summary

Other Scenarios:

Buyer: BioMarin Pharmaceutical Inc. (BMRN) Last Price: 35.58 Market Cap.: 3.46B
Target: Pharmion Corporation (PHRM) Last Price: 72.32 Market Cap.: 2.71B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 918
Biopharmaceuticals 375

- 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)
  • 6R-BH4 (Sapropterin Dihydrochloride)
  • Aldurazyme (Laronidase)
  • Naglazyme (Galsulfase)
  • Kuvan (Sapropterin Dihydrohchloride)/FormerlyPhenoptin
Target (Total: 5)
  • Innohep (Tinzaparin Sodium)
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Oral Azacitidine
  • Vidaza (Azacitidine)
Buyer

n/a
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Medicis Pharmaceutical Corporation (MRX)
Target (Total: 6)
  • GPC Biotech AG (ADR) (GPCB)
  • Celgene Corporation (CELG)
  • salesforce.com, inc. (CRM)
  • MethylGene Inc. (MYG:CA)
Buyer (Total: 2)
  • Healthcare At Home
  • AmerisourceBergen Corp. (ABC)
Target (Total: 4)
  • US Oncology, Inc.
  • Cardinal Health, Inc. (CAH)
  • McKesson Corporation (MCK)
  • Government - United Kingdom

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 525 513
Revenue Per Employee 342,683.6 558,770.6
Total Revenue 44.9 71.5
Total Expenses 44.9 102.6
Other Revenue 18.7 0.0
Cost of Revenue 5.2 19.7
SG&A Expense 23.9 50.0
Research & Development 24.0 30.4
Other Operating Expense 0.0 0.0
Operating Income -0.0 -31.2
Unusual Income -9.4 0.0
LT Debt to Capital 75.02 0
Fwd P/E 100.49 -395.28
Fwd P/Rev 12.61 7.21
Book Value 187.7 358.9
Curr Portion of LTD/Cap Lease 6.3 0.0

Individual Company Summary

Focused

Buyer

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

Target

Focused (): Healthcare > Biopharmaceuticals > Oncology

Business Description

Buyer

BioMarin Pharmaceutical Inc. (BioMarin) develops and commercializes biopharmaceuticals for serious diseases and medical conditions. Its product portfolio comprises three products and multiple investigational product candidates. Approved products include Naglazyme (galsulfase), Kuvan (sapropterin dihydrochloride) and Aldurazyme (laronidase). As on December 31, 2007, BioMarin was conducting clinical trials on several product candidates for the treatment of genetic diseases, including PEG-PAL, formerly referred to as Phenylase (phenylalanine ammonia lyase), an enzyme substitution therapy for the treatment of phenylketonurics who are not responsive to Kuvan. On January 3, 2008, the Company purchased its previously leased facility in Novato, California. On December 18, 2007, BioMarin announced that it re-acquired the Canadian rights for BH4, including Kuvan, from Merck Serono, a division of Merck KGaA.

Target

Pharmion Corporation is a global pharmaceutical company that acquires, develops and commercializes products for the treatment of hematology and oncology patients. The Company has established a portfolio of approved products and product candidates focused on the hematology and oncology markets. These include Pharmion?s primary commercial products, Vidaza (azacitidine for injection), which it markets and sells as an approved treatment for myelodysplastic syndromes in the United States, Switzerland, Israel and the Philippines. and Thalidomide Pharmion 50 milligram (Thalidomide Pharmion), a therapy for the treatment of multiple myeloma and certain other forms of cancer, which it sells on a compassionate use or named patient basis in certain countries of Europe. Thalidomide Pharmion is approved in Australia, New Zealand, Turkey, Israel, South Korea and Thailand for the treatment of multiple myeloma. In January 2008, Celgene Corporation has cleared its pending acquisition of Pharmion.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 84.9 72.66
Operating Margin % -22.01 -25.91
Quick Ratio 9.82 3.64
Current Ratio 10.47 4
Coverage Ratio -0.44 -0.15
Total Assets 815.3 443.3
Return on Equity % -8.42 -17.79
Return on Assets % -1.94 -14.4
Cash+ ST Inv. Per Share 5.81 6.67
Total Debt 570.2 0.0
Total Debt to Equity % 303.76 0
Total Debt to Tangible Equity % 363.51 0
Debt to Asset % 69.94 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.
Endocrinology/Metabolism
The Endocrinology/Metabolism Subsector includes therapeutics that treat metabolic disorders and conditions resulting from the dysfunction of hormone secreting glands.
  
Hematology
The Hematology Subsector includes therapeutics that treat blood-based diseases and disorders.
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.
  
Surgery
The Surgery Subsector includes therapeutics that treat complications associated with surgical procedures.
  
Urology
The Urology Subsector includes therapeutics that treat diseases of the kidney, urinary tract, bladder, and the male reproductive system.
  

- 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:

  • 6R-BH4 (Sapropterin Dihydrochloride)
  
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.

Target Products:

  • Innohep (Tinzaparin Sodium)
  
Thromboembolism  
Anticoagulating Agents (Anticoagulants)  
Thrombin Inhibitors
Therapeutics that treat the obstruction of a blood vessel by preventing blood clots from forming.

Target Products:

  • Innohep (Tinzaparin Sodium)
  
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.

Buyer 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.

Buyer 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.

Buyer Products:

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

Buyer Products:

  • Kuvan (Sapropterin Dihydrohchloride)/FormerlyPhenoptin
  
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.

Buyer Products:

  • PEG-PAL (Phenylalanine Ammonia Lyase)/Formerly Phenylase
  
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:

  • 6R-BH4 (Sapropterin Dihydrochloride)

Target Products:

  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • 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.

Target Products:

  • Vidaza (Azacitidine)
  
Infectious Diseases  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of infectious diseases in very early stages of research where no human subject is involved.

Buyer Products:

  • Cystic Fibrosis Program
  
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.

Target Products:

  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Vidaza (Azacitidine)
  • Oral Azacitidine
  
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.

Target Products:

  • Amrubicin (Anthracycline)
  
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.

Buyer Products:

  • Orapred ODT (Prednisolone Sodium Phosphate Orally Disintegrating Tablet)
  • Orapred (Prednisolone Sodium Phosphate Oral Solution)
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of respiratory disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Cystic Fibrosis Program
  
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.

Target Products:

  • Innohep (Tinzaparin Sodium)
  
Urology  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of urological disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • BMN-185 (IgA Protease)
  

- 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
  Shire plc (ADR) n/a 11,013.064 0.00 19.66 4.52 3.82 n/a
StemCells, Inc. n/a 111.340 0.00 n/a 2,782.26 n/a 2.74
Target
  Pfizer Inc. n/a 144,347.120 17.73 9.11 2.98 3.03 6.24
GlaxoSmithKline plc (ADR) n/a 115,986.006 11.18 10.85 2.57 2.53 15.20
sanofi-aventis (ADR) n/a 98,531.811 16.69 9.14 2.25 2.40 n/a
Genentech, Inc. n/a 83,607.511 30.19 25.16 7.13 6.43 9.13
Eli Lilly & Co. n/a 56,508.154 19.14 12.64 3.03 2.79 5.04
Celgene Corporation n/a 22,917.366 101.21 38.96 16.30 11.48 8.45
Eisai Co., Ltd (ADR) n/a 9,661.528 13.56 13.89 1.46 1.40 2.29
Millennium Pharmaceuticals, Inc. n/a 4,249.041 284.76 58.61 8.05 7.65 5.90
SuperGen, Inc. n/a 135.648 10.37 -12.63 5.91 3.71 1.48
Poniard Pharmaceuticals, Inc. n/a 132.393 0.00 -3.07 n/a 12.14 1.53
Vion Pharmaceuticals, Inc. n/a 25.897 0.00 -0.71 1,194.74 n/a 3.14

- 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
  Medicis Pharmaceutical Corporation n/a 1,083.770 14.44 12.72 2.33 2.00 2.81
Target
  GPC Biotech AG (ADR) 66.00% 123.561 0.00 -1.04 3.95 3.84 1.63
Celgene Corporation n/a 22,917.366 101.21 38.96 16.30 11.48 8.45
salesforce.com, inc. n/a 6,759.538 368.29 174.97 9.03 6.62 16.14
MethylGene Inc. n/a 87.304 0.00 n/a 6.00 n/a 1.75
Ben Venue Laboratories, Inc. n/a n/a n/a n/a n/a n/a n/a
Ash Stevens, Inc. 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
  Healthcare At Home 29.50% n/a n/a n/a n/a n/a n/a
AmerisourceBergen Corp. 3.90% 6,687.985 14.64 14.03 0.10 0.10 n/a
Target
  US Oncology, Inc. 19.00% n/a n/a n/a n/a n/a n/a
Cardinal Health, Inc. 11.00% 19,851.610 12.83 14.65 0.22 0.21 15.33
McKesson Corporation 9.00% 16,575.105 17.63 17.42 0.17 0.16 5.60
Government - United Kingdom 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
  Genzyme Corporation n/a 19,659.989 40.94 20.86 5.16 4.24 5.38
Medicis Pharmaceutical Corporation n/a 1,083.770 14.44 12.72 2.33 2.00 2.81
Sciele Pharma Inc. n/a 671.385 14.79 9.33 1.76 1.53 77.78
Daiichi Sankyo Company, Limited n/a 0.000 0.00 n/a 0.00 n/a n/a
AnGes MG, Inc. n/a n/a n/a n/a n/a n/a n/a
Merck KGaA n/a n/a n/a n/a n/a n/a n/a
University Of California, San Francisco n/a n/a n/a n/a n/a n/a n/a
Target
  Pfizer Inc. n/a 144,347.120 17.73 9.11 2.98 3.03 6.24
Celgene Corporation n/a 22,917.366 101.21 38.96 16.30 11.48 8.45
Cardinal Health, Inc. n/a 19,851.610 12.83 14.65 0.22 0.21 15.33
McKesson Corporation n/a 16,575.105 17.63 17.42 0.17 0.16 5.60
GPC Biotech AG (ADR) n/a 123.561 0.00 -1.04 3.95 3.84 1.63
MethylGene Inc. n/a 87.304 0.00 n/a 6.00 n/a 1.75
US Oncology, Inc. n/a n/a n/a n/a n/a n/a n/a
LEO Pharma A/S n/a n/a n/a n/a n/a n/a n/a
Ash Stevens, Inc. n/a n/a n/a n/a n/a n/a n/a
Dainippon Sumitomo Pharma Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
Ben Venue Laboratories, Inc. n/a n/a n/a n/a n/a n/a n/a
Nippon Shinyaku Co., Ltd. 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 86.8 267.3 354.1
Other Revenue 34.8 0.0 34.8
Total Revenue 121.6 267.3 388.9
Cost of Revenue 18.4 73.1 91.4
SG&A Expense 77.5 143.2 220.7
Depreciation & Amortization 4.4 9.9 14.3
Research & Development 78.6 102.4 181.0
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) -30.5 8.0 -22.5
Total Expenses 148.3 336.5 484.9
Operating Income -26.8 -69.2 -96.0
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 11.7 10.2 21.9
Other, Net 0.0 0.0 0.0
Income Before Taxes -15.1 -59.1 -74.2
Income Taxes 0.7 4.8 5.5
Income After Taxes -15.8 -63.9 -79.7
Net Income - Excl. Xord. Items -15.8 -63.9 -79.7
Net Income - Incl. Xord. Items -15.8 -63.9 -79.7
Income Avail. to Common -15.8 -63.9 -79.7
Share Items
Basic Avg. Shares Outstanding 91.6 37.3 128.8
Basic EPS - Excl. Xord. Items n/a n/a -0.62
Basic EPS - Incl. Xord. Items n/a n/a -0.62
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 101.2 37.3 138.5
F.D. EPS - Excl. Xord. Items n/a n/a -0.58
F.D. EPS - Incl. Xord. Items n/a n/a -0.58
Balance Sheet
Assets
Cash and Equivalents 228.3 178.9 407.2
ST Investments 359.3 69.7 429.0
Accounts Receivable 17.0 45.0 61.9
Inventory 32.4 12.8 45.3
Prepayments and Advances 0.0 2.8 2.8
Other Current Assets 7.2 13.6 20.8
Current Assets 644.3 322.8 967.1
PPE 111.6 0.0 111.6
Accum D&A -34.8 0.0 -34.8
PPE, Net 76.8 11.4 88.3
Goodwill & Intangibles 30.9 103.1 134.0
Long Term Investments 44.9 0.0 44.9
Other Assets 0.0 0.0 0.0
Other LT Assets 18.4 6.0 24.4
Total Assets 815.3 443.3 1,258.6
Liabilities
Accounts Payable 1.2 14.3 15.5
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 48.6 66.3 114.9
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 6.3 0.0 6.3
Other (Current) Liabilities 5.5 0.0 5.5
Current Liab. 61.5 80.6 142.2
LT Debt 563.9 0.0 563.9
Total LT Debt 563.9 0.0 563.9
Deferred Taxes 0.0 2.7 2.7
Other LT Liab. 2.1 1.1 3.1
Total Liabilities 627.6 84.4 711.9
Shareholders Equity
Common Stock 0.1 0.0 0.1
Additional Paid in Capital 794.9 631.7 1,426.7
Retained Earnings -607.4 -290.7 -898.1
Other Equity 0.1 17.9 18.0
Total Equity 187.7 358.9 546.7
Total Liab. & Equity 815.3 443.3 1,258.6
Shares Outstanding 91.7 37.4 129.1
Cash Flow
Operating Cash Flow
CF Net Income -15.8 -63.9 -79.7
CF Depreciation 13.5 12.6 26.1
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items -19.0 3.2 -15.8
Change in Working Capital -13.2 24.5 11.3
Total Cash From Operating Activities -34.5 -23.5 -58.0
Investing Cash Flow (not calculated)
Capital Expenditures -22.4 -6.7 -29.1
Other Investing Cash Flows -128.6 8.6 -120.0
Total Cash From Investing Activities -151.0 1.8 -149.2
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 15.2 138.0 153.2
Purchase and Retirement of Debt 0.0 -0.9 -0.9
Other Financing Cash Flow 0.0 0.4 0.4
Total Cash From Financing Activities 324.6 137.5 462.0
Exchange Rate Effects 0.1 3.2 3.3
Net Change in Cash 139.2 119.0 258.2
Cash Taxes Paid 0.4 3.0 3.4
Cash Interest Paid 7.4 0.2 7.6