Summary

Other Scenarios:

Buyer: BioMarin Pharmaceutical Inc. (BMRN) Last Price: 17.00 Market Cap.: 1.70B
Target: PDL BioPharma Inc. (PDLI) Last Price: 9.40 Market Cap.: 1.12B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 844
Biopharmaceuticals 368
Outsourced Services   48

- 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: 11)
  • 6R-BH4 (Sapropterin Dihydrochloride)
  • Aldurazyme (Laronidase)
  • Naglazyme (Galsulfase)
  • Kuvan (Sapropterin Dihydrohchloride)/FormerlyPhenoptin
Target (Total: 8)
  • Nuvion (Visilizumab)
  • Daclizumab (Monoclonal Antibody)
  • Therapeutic Antibody Candidates
  • Volociximab/M200 (Chimeric Monoclonal Antibody)
Buyer

n/a
Target
  • Humanized Antibody Technology

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 2)
  • Medicis Pharmaceutical Corporation (MRX)
  • University Of California, San Francisco
Target (Total: 2)
  • Seattle Genetics, Inc. (SGEN)
  • Highland Distressed Opportunities, Inc (HCD)
Buyer (Total: 2)
  • Healthcare At Home
  • Daiichi Sankyo Company, Limited (DSKYF)
Target (Total: 12)
  • Genentech, Inc. (DNA)
  • AstraZeneca plc (ADR) (AZN)
  • Roche Holding Ltd. (ADR) (RHHBY)
  • Wyeth (WYE)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 525 887
Revenue Per Employee 549,777.9 348,577.5
Total Revenue 72.6 77.3
Total Expenses 70.3 64.3
Other Revenue 4.8 0.0
Cost of Revenue 14.1 0.0
SG&A Expense 29.0 18.5
Research & Development 26.2 44.7
Other Operating Expense 0.0 0.0
Operating Income 2.4 13.1
Unusual Income 0.0 1.0
LT Debt to Capital 67.64 88.93
Fwd P/E 57.33 12.78
Fwd P/Rev 5.70 3.62
Book Value 237.9 66.4
Curr Portion of LTD/Cap Lease 71.2 0.8

Individual Company Summary

Focused

Buyer

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

Target

Focused (): Healthcare > Biopharmaceuticals

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

PDL BioPharma Inc. is a biopharmaceutical company focused on the discovery and development of novel antibodies in oncology and immunologic diseases. It receives royalties and other revenues through licensing agreements with various biotechnology and pharmaceutical companies based on its antibody humanization technology platform. These licensing agreements have contributed to the development by the Company?s licensees of nine marketed products. The Company has several investigational compounds in clinical development for severe or life-threatening diseases, two of which it is developing in collaboration with Biogen Idec MA, Inc. (Biogen Idec). Its products include Daclizumab, Volociximab, HuLuc63, PDL192 and Nuvion. In March 2008, the Company closed the sale of the Cardiovascular Assets, which included Cardene, to EKR Therapeutics, Inc (EKR). However, the Company continues to perform development work for new formulations and presentations of Cardene pursuant to an agreement with EKR.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 80.97 100
Operating Margin % -0.69 23.28
Quick Ratio 5.09 8.11
Current Ratio 5.77 8.34
Coverage Ratio -7.1 0.02
Total Assets 859.0 718.2
Return on Equity % 3.74 98.81
Return on Assets % 1.04 9.13
Cash+ ST Inv. Per Share 5.45 3.63
Total Debt 568.4 533.8
Total Debt to Equity % 238.93 804.19
Total Debt to Tangible Equity % 269.94 911.61
Debt to Asset % 66.17 74.32

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.
  
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.
  
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.
  
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.
  
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.
Transplantation
The Transplantation Subsectors includes therapeutics that treat rejection and infection associated with tissue transplantation into the human body.
  
Urology
The Urology Subsector includes therapeutics that treat diseases of the kidney, urinary tract, bladder, and the male reproductive system.
  
Outsourced Services  
Drug Discovery Services
The Drug Discovery Services Subsector includes companies that provide biopharmaceutical companies with novel biological targets and drug leads.
  

- 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)
  
Digestive System  
Gastrointestinal Tract Disorders  
Intestinal Disorders  
Inflammatory Bowel Disease (IBD)  
Ulcerative Colitis  
Monoclonal Antibodies
Therapeutics that treat ulcerative colitis through modulation of immune pathways implicated in the progression of the disease.

Target Products:

  • Nuvion (Visilizumab)
  
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:

  • Nuvion (Visilizumab)
  
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
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of endocrinology disorders in early stages of clinical research where human subject is involved.

Buyer Products:

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

  • Morquio Clinical Assessment Program (MorCAP)
  
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)
  
Immunology  
Autoimmune Disorders  
Inflammatory Bowel Disease (IBD)  
Ulcerative Colitis  
Monoclonal Antibodies
Therapeutics that treat ulcerative colitis through modulation of immune pathways implicated in the progression of the disease.

Target Products:

  • Nuvion (Visilizumab)
  
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.

Target Products:

  • Nuvion (Visilizumab)
  • Daclizumab (Monoclonal Antibody)
  
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.

Target Products:

  • Therapeutic Antibody Candidates
  
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
  
Neurology
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:

  • Daclizumab (Monoclonal Antibody)
  
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.

Buyer Products:

  • SMT C1100 (Utrophin Upregulator)
  
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:

  • Volociximab/M200 (Chimeric Monoclonal Antibody)
  • PDL192 (Humanized Monoclonal Antibody)
  • Elotuzumab/Previously HuLuc63 (Anti-CS1 Monoclonal Antibody)
  
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.

Target Products:

  • Therapeutic Antibody Candidates
  
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)
  
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:

  • Daclizumab (Monoclonal Antibody)
  
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
  
Transplantation  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the management of rejection and infection in early stages of clinical research where human subject is involved.

Target Products:

  • Daclizumab (Monoclonal Antibody)
  
Renal (Kidney)  
Rejection Prophylaxis  
Monoclonal Antibodies
Protein-based therapeutics that target specific substances like proteins.

Target Products:

  • Zenapax (Daclizumab)
  
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)
  
Outsourced Services  
Drug Discovery Services  
Lead Discovery/Validation/Optimization  
Lead Biologics  
Antibodies
Biological lead compounds which have a specific amino acid sequence that only interacts with specific substances to cause an immunological response.

Target Products:

  • Humanized Antibody Technology
  

- 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 7,984.115 35.20 10.96 2.68 2.57 n/a
Target
  GlaxoSmithKline plc (ADR) n/a 93,667.975 13.40 10.67 2.68 2.39 78.84
Genentech, Inc. n/a 81,785.127 26.16 24.31 6.45 6.12 6.82
Baxter International Inc. n/a 31,107.783 16.18 15.17 2.54 2.56 5.82
Hospira, Inc. n/a 4,280.381 14.64 11.00 1.17 1.19 17.62
Medarex inc. n/a 610.859 n/a -13.91 11.60 12.46 1.85
Dyax Corp. n/a 207.090 n/a -2.65 6.87 7.62 n/a
Sangamo Biosciences, Inc. n/a 133.183 n/a -4.41 10.99 8.82 2.47
Nuvelo, Inc. n/a 16.099 n/a -0.53 1.06 1.12 0.37
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
  Medicis Pharmaceutical Corporation n/a 784.970 18.65 9.85 1.52 1.51 2.77
University Of California, San Francisco n/a n/a n/a n/a n/a n/a n/a
Target
  Seattle Genetics, Inc. n/a 678.890 n/a -8.12 20.57 19.43 6.42
Highland Distressed Opportunities, Inc n/a 20.374 n/a 1.89 0.70 1.80 0.17

- 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 56.00% n/a n/a n/a n/a n/a n/a
Daiichi Sankyo Company, Limited n/a n/a n/a n/a n/a n/a n/a
Target
  Genentech, Inc. 68.00% 81,785.127 26.16 24.31 6.45 6.12 6.82
AstraZeneca plc (ADR) 14.00% 56,480.158 9.23 7.88 1.79 1.75 n/a
Roche Holding Ltd. (ADR) n/a 123,605.205 14.77 14.57 3.15 2.87 5.39
Wyeth n/a 47,933.530 10.71 10.04 2.06 2.03 3.20
Bristol Myers Squibb Co. n/a 44,434.739 11.35 12.69 2.14 2.03 6.45
Biogen Idec Inc. n/a 13,712.382 17.66 13.24 3.50 3.36 5.76
Cardinal Health, Inc. n/a 11,701.788 9.38 8.59 0.13 0.12 7.08
McKesson Corporation n/a 9,990.133 9.34 8.83 0.09 0.10 3.82
AmerisourceBergen Corp. n/a 5,164.594 20.61 10.17 0.07 0.07 n/a
Elan Corporation, plc (ADR) n/a 3,413.400 n/a -12.37 3.60 3.09 n/a
Seattle Genetics, Inc. n/a 678.890 n/a -8.12 20.57 19.43 6.42
Progenics Pharmaceuticals, Inc. n/a 259.793 n/a -7.00 3.40 2.94 2.03

- 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 17,640.589 42.68 18.62 3.95 3.79 4.53
Medicis Pharmaceutical Corporation n/a 784.970 18.65 9.85 1.52 1.51 2.77
AnGes MG, Inc. n/a n/a n/a n/a n/a n/a n/a
Daiichi Sankyo Company, Limited n/a n/a n/a n/a n/a n/a n/a
Summit Corporation plc 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
  Roche Holding Ltd. (ADR) n/a 123,605.205 14.77 14.57 3.15 2.87 5.39
Genentech, Inc. n/a 81,785.127 26.16 24.31 6.45 6.12 6.82
Wyeth n/a 47,933.530 10.71 10.04 2.06 2.03 3.20
Bristol Myers Squibb Co. n/a 44,434.739 11.35 12.69 2.14 2.03 6.45
Eli Lilly & Co. n/a 41,396.458 17.16 8.88 2.03 1.97 3.62
Biogen Idec Inc. n/a 13,712.382 17.66 13.24 3.50 3.36 5.76
Cardinal Health, Inc. n/a 11,701.788 9.38 8.59 0.13 0.12 7.08
Elan Corporation, plc (ADR) n/a 3,413.400 n/a -12.37 3.60 3.09 n/a
Seattle Genetics, Inc. n/a 678.890 n/a -8.12 20.57 19.43 6.42
Exelixis, Inc. n/a 522.719 n/a -2.38 4.45 3.34 n/a
Progenics Pharmaceuticals, Inc. n/a 259.793 n/a -7.00 3.40 2.94 2.03
Pierre Fabre Medicament 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 212.1 296.3 508.4
Other Revenue 30.0 0.0 30.0
Total Revenue 242.1 296.3 538.4
Cost of Revenue 46.1 0.0 46.1
SG&A Expense 101.7 77.7 179.5
Depreciation & Amortization 4.4 0.0 4.4
Research & Development 91.6 185.2 276.7
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 -49.7 -49.7
Unusual Expense (Income) 0.0 14.1 14.1
Total Expenses 243.7 227.3 471.1
Operating Income -1.7 69.0 67.3
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 11.8 1.2 13.0
Other, Net 0.0 0.0 0.0
Income Before Taxes 10.2 70.2 80.3
Income Taxes 1.3 4.6 5.9
Income After Taxes 8.9 65.6 74.5
Net Income - Excl. Xord. Items 8.9 65.6 74.5
Discontinued Operations 0.0 -53.4 -53.4
Net Income - Incl. Xord. Items 8.9 12.2 21.1
Income Avail. to Common 8.9 12.2 21.1
Share Items
Basic Avg. Shares Outstanding 99.5 119.3 218.8
Basic EPS - Excl. Xord. Items 0.09 0.55 0.34
Basic EPS - Incl. Xord. Items 0.09 0.10 0.10
Full Dilution Adjustment 0.0 2.3 2.3
Fully Diluted Shares Outstanding 103.4 152.8 256.2
F.D. EPS - Excl. Xord. Items 0.09 0.43 0.29
F.D. EPS - Incl. Xord. Items 0.09 0.08 0.08
Balance Sheet
Assets
Cash and Equivalents 271.2 555.3 826.5
ST Investments 292.0 0.0 292.0
Accounts Receivable 51.1 0.0 51.1
Inventory 68.1 0.0 68.1
Other Current Assets 14.6 16.4 31.0
Current Assets 697.0 571.7 1,268.7
PPE 153.7 0.0 153.7
Accum D&A -42.9 0.0 -42.9
PPE, Net 110.7 127.3 238.0
Goodwill & Intangibles 27.3 7.8 35.2
Long Term Investments 5.0 0.0 5.0
Other Assets 0.0 0.0 0.0
Other LT Assets 19.0 11.5 30.5
Total Assets 859.0 718.2 1,577.3
Liabilities
Accounts Payable 48.0 3.5 51.5
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 0.0 52.1 52.1
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 71.2 0.8 72.0
Other (Current) Liabilities 1.6 12.2 13.8
Current Liab. 120.7 68.5 189.2
LT Debt 497.2 532.9 1,030.2
Total LT Debt 497.2 532.9 1,030.2
Other LT Liab. 3.2 50.4 53.6
Total Liabilities 621.1 651.9 1,273.0
Shareholders Equity
Common Stock 0.1 1.2 1.3
Additional Paid in Capital 841.7 629.3 1,470.9
Retained Earnings -601.1 -563.6 -1,164.7
Other Equity -2.8 -0.5 -3.2
Total Equity 237.9 66.4 304.3
Total Liab. & Equity 859.0 718.2 1,577.3
Shares Outstanding 99.7 119.3 219.0
Cash Flow
Operating Cash Flow
CF Net Income 8.9 12.2 21.1
CF Depreciation 16.5 26.2 42.7
CF Amortization 0.0 7.2 7.2
CF Deferred Taxes 0.0 -0.3 -0.3
Other Non-Cash Items 13.3 38.0 51.3
Change in Working Capital -49.8 33.8 -16.0
Total Cash From Operating Activities -11.1 117.1 106.0
Investing Cash Flow (not calculated)
Capital Expenditures -54.4 -15.1 -69.5
Other Investing Cash Flows 21.1 723.1 744.2
Total Cash From Investing Activities -33.3 708.0 674.7
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 30.4 20.6 51.0
Purchase and Retirement of Debt -316.1 -6.1 -322.2
Other Financing Cash Flow 0.0 -494.2 -494.2
Total Cash From Financing Activities 23.7 -479.8 -456.1
Exchange Rate Effects 0.1 0.0 0.1
Net Change in Cash -20.6 345.3 324.7
Cash Taxes Paid 0.2 0.2 0.4
Cash Interest Paid 10.4 12.4 22.9