Summary

Other Scenarios:

Buyer: Lexicon Pharmaceuticals, Inc. (LXRX) Last Price: 3.33 Market Cap.: 260.77M
Target: DepoMed, Inc. (DEPO) Last Price: 4.94 Market Cap.: 234.50M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 908
Biopharmaceuticals 366
Outsourced Services 65

- 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)
  • Genomics-Based Drug Discovery Program
  • Lexicon Pharmaceuticals, Inc.
  • LexVision Database
  • OmniBank
Target (Total: 8)
  • AcuForm Oral Drug Delivery Technology
Buyer
  • ANGPTL4 Antibodies
  • LX-1031
  • LX-1032
  • LX 2931
Target
  • Furosemide GR
  • GERD Program
  • Glumetza (Metformin GR)
  • Gabapentin GR

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 2)
  • BSQUARE Corporation (BSQR)
  • Valentis, Inc. (VLTS)
Target (Total: 1)
  • Biovail Corporation (USA) (BVF)
Buyer (Total: 5)
  • Bristol Myers Squibb Co. (BMY)
  • Akzo Nobel N.V. (ADR) (AKZOY)
  • Takeda Pharmaceutical Company Limited (TKPHF)
  • Genentech, Inc. (DNA)
Target (Total: 5)
  • Esprit Pharma Holding Company, Inc.
  • King Pharmaceuticals, Inc. (KG)
  • Biovail Corporation (USA) (BVF)
  • LG Electronics (LGLD:GB)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 585 105
Revenue Per Employee 91,742.9 153,580.8
Total Revenue 13.5 3.8
Total Expenses 32.6 15.1
Other Revenue 0.0 0.0
Cost of Revenue 0.0 0.3
SG&A Expense 5.3 6.2
Research & Development 27.3 8.6
Other Operating Expense 0.0 0.0
Operating Income -19.1 -11.3
Unusual Income 0.0 0.0
LT Debt to Capital 31.11 0
Fwd P/E -4.76 -5.64
Fwd P/Rev 3.46 8.56
Book Value 69.0 -49.5
Curr Portion of LTD/Cap Lease 0.8 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Outsourced Services > Drug Discovery Services > Target Discovery/Validation

Target

Focused (): *Healthcare > Outsourced Services > Drug Delivery Technology > Oral Delivery > Polymer Coated

Business Description

Buyer

Lexicon Pharmaceuticals, Inc., formerly Lexicon Genetics Incorporated, is a biopharmaceutical company focused on the discovery and development of treatments for human disease. The Company is discovering the physiological and behavioral functions of genes to identify those that encode potential targets for therapeutic intervention, or drug targets. It engages in programs for the discovery and development of potential small molecule, antibody and protein drugs. The Company focuses on six therapeutic areas: diabetes and obesity, cardiovascular disease, psychiatric and neurological disorders, cancer, immune system disorders, and ophthalmic disease. The Company is working both independently and through collaborations and alliances to commercialize its technology and turn its discoveries into drugs. It has established multiple collaborations with pharmaceutical and biotechnology companies, as well as research institutes and academic institutions.

Target

Depomed, Inc. (Depomed) is a specialty pharmaceutical company engaged in the development and commercialization of products that are based on its oral drug delivery technologies. Depomed has developed two commercial products: GLUMETZA (metformin hydrochloride extended release tablets), which is a once-daily treatment for adults with type 2 diabetes that it jointly commercializes in the United States with King Pharmaceuticals, Inc. and ProQuin XR (ciprofloxacin hydrochloride extended release tablets), which is a once-daily treatment for uncomplicated urinary tract infections that Esprit Pharma, Inc. markets in the United States. Depomed has also developed Gabapentin GR, an extended release form of gabapentin. In addition, the Company has other product candidates in earlier stages of development, including a treatment for gastroesophageal reflux disease.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 100 84.77
Operating Margin % -96.89 -369.97
Quick Ratio 1.42 1.44
Current Ratio 1.5 1.84
Coverage Ratio -0.01 0
Total Assets 167.4 37.0
Return on Equity % -90.42 n/a
Return on Assets % -37.28 -115.66
Cash+ ST Inv. Per Share 0.76 0.61
Total Debt 32.0 0.0
Total Debt to Equity % 46.35 0
Total Debt to Tangible Equity % 74.02 n/a
Debt to Asset % 19.11 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.
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.
  
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.
  
Pain Management
The Pain Management Subsector includes therapeutics that treat and management pain.
  
Outsourced Services
Drug Delivery Technology
The Drug Delivery Technology Subsector includes companies that develop novel delivery methods for therapeutics.
  
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.

Target Products:

  • Furosemide GR
  
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:

  • ANGPTL4 Antibodies
  
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.

Buyer Products:

  • LX-1031

Target Products:

  • GERD Program
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:

  • LX-1032
  
Endocrinology/Metabolism  
Diabetes  
Non-Insulin Dependent Diabetes Mellitus (NIDDM)/Type 2 Diabetes  
Biguanides
Therapeutics that treat abnormally high blood glucose levels by decreasing the production of glucose in the liver, decreasing intestinal absorption of glucose and increasing peripheral uptake and utilization of glucose.

Target Products:

  • Glumetza (Metformin GR)
  
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.

Target Products:

  • Gabapentin GR
  
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.

Target Products:

  • Metformin/Sulfonylurea GR
  
Immunology  
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:

  • LX 2931
  
Infectious Diseases  
Bacterial  
Antibacterial Agents  
Narrow Spectrum  
Urology  
Urinary Tract Infections (UTI)  
Antibacterial Agents (Antibiotics)  
Quinolones/Fluoroquinolones
Therapeutics that treat bacterial infections of the urethra, urinary bladder, ureters, and kidneys by promoting breakage of bacterial DNA strands.

Target Products:

  • Proquin XR (Ciprofloxacin Extended-Release)
  
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.

Buyer Products:

  • LX-6171

Target Products:

  • Gabapentin GR
Oncology  
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:

  • NeuGene Antisense Compound
  
Pain Management  
Non-Narcotics  
Gamma-Aminobutyric Acid (GABA) Reuptake Inhibitors
Therapeutics that treat pain by inhibiting the reuptake of GABA, which increases the levels of GABA in the synapses.

Target Products:

  • Gabapentin GR
  
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:

  • Gabapentin GR
  
Outsourced Services
Drug Delivery Technology  
Oral Delivery  
Polymer Coated
Drug Delivery Technologies used to deliver drugs in a polymer based matrix to hold/enclose the drug.

Target Products:

  • AcuForm Oral Drug Delivery Technology
  
Drug Discovery Services  
Lead Discovery/Validation/Optimization  
Combinatorial Services
Drug discovery companies that provide biopharmaceutical companies combinatorial chemistry services.

Buyer Products:

  • Genomics-Based Drug Discovery Program
  • Lexicon Pharmaceuticals, Inc.
  
Target Discovery/Validation  
Databases  
Genomics  
Human
Genomic databases that contain human genetic information.

Buyer Products:

  • LexVision Database
  • OmniBank
  • Genome5000 Database
  
Services
Drug discovery services that discover and validate drug targets for the development of novel biopharmaceutical drugs.

Buyer Products:

  • Functional Genomics Program
  

- 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
  Millennium Pharmaceuticals, Inc. n/a 3,374.965 n/a -357.67 7.10 7.48 5.50
Human Genome Sciences n/a 1,217.829 n/a -5.45 43.23 24.72 7.04
Target
  Pfizer Inc. n/a 181,913.371 9.77 12.05 3.71 3.81 6.48
Johnson & Johnson n/a 179,963.150 17.44 15.42 3.25 2.98 15.39
GlaxoSmithKline plc (ADR) n/a 147,509.658 13.61 13.29 3.20 3.23 13.91
Merck & Co., Inc. n/a 107,193.319 23.21 17.00 4.66 4.63 6.63
Abbott Laboratories n/a 83,179.438 53.69 19.30 3.68 3.72 n/a
Wyeth n/a 76,902.793 17.76 16.39 3.68 3.55 7.16
Bristol Myers Squibb Co. n/a 62,092.452 39.78 22.63 3.51 3.22 16.99
Bayer AG (ADR) n/a 58,900.185 11.37 17.48 1.45 1.33 n/a
Schering-Plough Corporation n/a 45,471.048 36.41 24.26 4.13 3.88 5.89
Teva Pharmaceutical Industries Ltd (ADR) n/a 32,986.239 17.39 18.51 3.74 3.60 24.33
Barr Pharmaceuticals, Inc. n/a 5,667.418 n/a 16.50 3.03 2.25 n/a
Mylan Laboratories Inc. n/a 4,489.333 20.66 10.63 2.79 2.10 6.57
Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30
Alpharma Inc. n/a 1,164.954 19.07 20.53 1.76 1.66 2.52
XenoPort, Inc. n/a 1,127.551 n/a -42.04 43.61 17.48 13.67
Sciele Pharma Inc. n/a 859.335 17.50 14.76 2.78 2.30 8.17
Flamel Technologies S.A. (ADR) n/a 566.178 n/a 201.36 20.55 4.87 8.32
SkyePharma PLC (ADR) n/a 415.644 n/a -15.63 4.09 3.22 n/a
Isolagen, Inc. n/a 125.156 n/a n/a 27.16 n/a n/a
MiddleBrook Pharmaceuticals, Inc. n/a 114.999 n/a -2.25 20.09 7.90 n/a
Access Pharmaceuticals, Inc. n/a 18.207 n/a n/a n/a n/a n/a
A.P. Pharma, Inc. n/a 15.518 n/a -0.96 n/a n/a 2.49
Carrington Laboratories, Inc. n/a 12.645 n/a n/a 0.51 n/a 8.76

- 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
  BSQUARE Corporation n/a 59.521 58.29 n/a 1.12 n/a 4.47
Valentis, Inc. n/a 3.242 n/a n/a 4.57 n/a 3.74
Target
  Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30

- 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
  Bristol Myers Squibb Co. 35.00% 62,092.452 39.78 22.63 3.51 3.22 16.99
Akzo Nobel N.V. (ADR) 21.00% 25,308.336 16.35 21.59 1.37 1.66 5.44
Takeda Pharmaceutical Company Limited 12.00% n/a n/a n/a n/a n/a n/a
Genentech, Inc. n/a 79,093.064 32.98 28.62 7.80 6.89 9.43
Government - United States n/a n/a n/a n/a n/a n/a n/a
Target
  Esprit Pharma Holding Company, Inc. 48.20% n/a n/a n/a n/a n/a n/a
King Pharmaceuticals, Inc. n/a 5,080.382 14.34 11.70 2.51 2.46 4.33
Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30
LG Electronics n/a n/a n/a n/a n/a n/a n/a
Madaus AG 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
  Genentech, Inc. n/a 79,093.064 32.98 28.62 7.80 6.89 9.43
Bristol Myers Squibb Co. n/a 62,092.452 39.78 22.63 3.51 3.22 16.99
Akzo Nobel N.V. (ADR) n/a 25,308.336 16.35 21.59 1.37 1.66 5.44
Inverness Medical Innovations, Inc. n/a 2,420.083 n/a 40.34 4.03 3.36 8.77
Medarex, Inc. n/a 1,801.051 n/a -59.75 38.24 39.36 3.23
XOMA Limited n/a 410.874 n/a -10.40 11.37 7.58 n/a
Invus Group, LLC n/a n/a n/a n/a n/a n/a n/a
Taconic Farms, Inc. n/a n/a n/a n/a n/a n/a n/a
Takeda Pharmaceutical Company Limited n/a n/a n/a n/a n/a n/a n/a
Government - United States n/a n/a n/a n/a n/a n/a n/a
Texas A&M University n/a n/a n/a n/a n/a n/a n/a
Target
  Shire plc (ADR) n/a 13,990.911 42.42 37.53 7.31 6.28 7.20
King Pharmaceuticals, Inc. n/a 5,080.382 14.34 11.70 2.51 2.46 4.33
Biovail Corporation (USA) n/a 4,076.580 17.20 13.66 3.73 4.73 7.30
Patheon, Inc. n/a 373.694 n/a n/a 0.52 n/a 1.77
AVI BioPharma, Inc. n/a 153.376 n/a -6.53 261.88 8.86 5.41
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
LG Electronics n/a n/a n/a n/a n/a n/a n/a
Madaus AG 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 65.3 12.0 77.4
Other Revenue 0.0 0.0 0.0
Total Revenue 65.3 12.0 77.4
Cost of Revenue 0.0 1.8 1.8
SG&A Expense 21.3 25.0 46.3
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 107.3 29.8 137.1
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Total Expenses 128.6 56.6 185.2
Operating Income -63.3 -44.5 -107.8
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 0.4 0.0 0.4
Other, Net 0.4 1.8 2.2
Income Before Taxes -62.5 -42.7 -105.2
Income Taxes -0.1 0.1 -0.0
Income After Taxes -62.4 -42.8 -105.2
Net Income - Excl. Xord. Items -62.4 -42.8 -105.2
Net Income - Incl. Xord. Items -62.4 -42.8 -105.2
Preferred Dividends 0.0 -0.7 -0.7
Income Avail. to Common -62.4 -43.4 -105.8
Share Items
Basic Avg. Shares Outstanding 77.9 42.1 120.0
Basic EPS - Excl. Xord. Items n/a n/a -0.88
Basic EPS - Incl. Xord. Items n/a n/a -0.88
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 77.9 42.1 120.0
F.D. EPS - Excl. Xord. Items n/a n/a -0.88
F.D. EPS - Incl. Xord. Items n/a n/a -0.88
Balance Sheet
Assets
Cash and Equivalents 19.6 5.2 24.8
ST Investments 39.9 20.6 60.5
Accounts Receivable 1.7 1.1 2.8
Inventory 0.0 4.4 4.4
Prepayments and Advances 3.5 3.3 6.8
Other Current Assets 0.0 0.0 0.0
Current Assets 64.8 34.5 99.3
PPE 135.2 0.0 135.2
Accum D&A -59.2 0.0 -59.2
PPE, Net 76.0 2.3 78.3
Goodwill & Intangibles 25.8 0.0 25.8
Other Assets 0.0 0.0 0.0
Other LT Assets 0.8 0.2 0.9
Total Assets 167.4 37.0 204.4
Liabilities
Accounts Payable 4.4 4.6 8.9
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 6.8 5.6 12.4
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 0.8 0.0 0.8
Other (Current) Liabilities 31.2 8.5 39.7
Current Liab. 43.2 18.7 61.9
LT Debt 31.2 0.0 31.2
Total LT Debt 31.2 0.0 31.2
Other LT Liab. 24.0 55.8 79.8
Total Liabilities 98.4 74.5 172.8
Shareholders Equity
Preferred Stock 0.0 12.0 12.0
Common Stock 0.1 145.5 145.6
Additional Paid in Capital 439.6 0.0 439.6
Retained Earnings -370.7 -195.0 -565.6
Other Equity -0.0 -0.0 -0.0
Total Equity 69.0 -37.5 31.5
Total Liab. & Equity 167.4 37.0 204.4
Shares Outstanding 78.3 42.1 120.4
Cash Flow
Operating Cash Flow
CF Net Income -62.4 -42.8 -105.2
CF Depreciation 10.3 1.2 11.6
CF Amortization 0.3 0.0 0.3
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 6.8 2.5 9.3
Change in Working Capital -21.4 9.2 -12.2
Total Cash From Operating Activities -66.3 -29.8 -96.1
Investing Cash Flow (not calculated)
Capital Expenditures -2.7 -0.6 -3.3
Other Investing Cash Flows 25.3 26.0 51.3
Total Cash From Investing Activities 22.6 25.4 48.0
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 42.2 1.4 43.6
Purchase and Retirement of Debt -0.8 0.0 -0.8
Other Financing Cash Flow 0.0 0.0 0.0
Total Cash From Financing Activities 41.4 1.4 42.8
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -2.2 -3.0 -5.3
Cash Taxes Paid 0.0 0.1 0.1
Cash Interest Paid 2.7 0.0 2.7