Summary

Other Scenarios:

Buyer: DepoMed, Inc. (DEPO) Last Price: 6.08 Market Cap.: 249.20M
Target: Alexza Pharmaceuticals, Inc. (ALXA) Last Price: 9.20 Market Cap.: 208.35M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 861
Biopharmaceuticals 315
Cardiovascular System   18
Endocrinology/Metabolism   10
Infectious Diseases   31
Neurology 31
Oncology   73
Pain Management 5
Outsourced Services 69
Drug Delivery Technology 15

- 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: 7)
  • Gastric Retention System
Target (Total: 5)
  • Staccato System
Buyer
  • Furosemide GR
  • Glumetza (Metformin GR)
  • Metformin/Sulfonylurea GR
  • Proquin XR (Ciprofloxacin Extended-Release)
Target
  • AZ-001 (Staccato Prochlorperazine)
  • AZ-002 (Staccato Alprazolam)
  • AZ-004 (Staccato Loxapine)
  • AZ-003 (Staccato Fentanyl)

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 1)
  • Biovail Corporation (USA) (BVF)
Target (Total: 0)

n/a
Buyer (Total: 4)
  • Esprit Pharma Holding Company, Inc.
  • Biovail Corporation (USA) (BVF)
  • LG Group
  • Madaus AG
Target (Total: 0)

n/a

Key Financial Summary:

Metric Buyer Target
Number of Employees 90 113
Revenue Per Employee 141,008.6 n/a
Total Revenue 3.2 2.0
Total Expenses 7.7 24.6
Other Revenue 0.0 0.0
Cost of Revenue 0.9 0.0
SG&A Expense 3.2 6.8
Research & Development 3.6 17.7
Other Operating Expense 0.0 0.0
Operating Income -4.5 -22.5
Unusual Income 0.0 0.0
Gross Margin % 71.27 100
Metric Buyer Target
Operating Margin % -143.74 -1,099.46
Total Assets 66.4 55.0
Return on Equity % -231.56 -67.44
Cash+ ST Inv. Per Share 1.48 4.91
Total Debt 0.0 5.7
Curr Portion of LTD/Cap Lease 0.0 1.4
Total Debt to Equity 0 13.36
LT Debt to Capital 0 9.13
Fwd P/E -12.79 -6.18
Fwd P/Rev 16.44 33.83
Book Value -5.3 -64.4

Individual Company Summary

Focused

Buyer

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

Target

Focused (): *Healthcare > Outsourced Services > Drug Delivery Technology > Pulmonary Delivery

Business Description

Buyer

Depomed, Inc. is a specialty pharmaceutical company engaged in the development of pharmaceutical products, based on its oral drug delivery technologies. During the year ended December 31, 2005, the United States Food and Drug Administration (FDA) approved two products developed by the Company, ProQuin XR, a once-daily formulation of the antibiotic drug ciprofloxacin for uncomplicated urinary tract infections, and Glumetza, a once-daily metformin product for Type II diabetes. Depomed has also developed Gabapentin GR, an extended release form of gabapentin. In addition, the Company is applying its AcuForm technology to other compounds in an effort to enhance the safety, efficacy and/or dosing compliance of the innovator product.

Target

Alexza Pharmaceuticals, Inc. (Alexza), formerly known as Alexza Molecular Delivery Corporation, is a development-stage pharmaceutical company focused on the development and commercialization of products for the treatment of acute and intermittent conditions. Its technology, the Staccato system, vaporizes unformulated drug compound to form a condensation aerosol that allows rapid systemic drug delivery through deep lung inhalation. The Company has four lead product candidates: AZ-001 (Staccato prochlorperazine) is for acute migraine headaches; AZ-002 (Staccato alprazolam) is for acute treatment of panic attacks associated with panic disorder; AZ-004 (Staccato loxapine) is for treatment of acute agitation in patients with schizophrenia, and AZ-003 (Staccato fentanyl) is for the treatment of acute pain. AZ-001 has completed a Phase IIa clinical trial, AZ-002 and AZ-004 has completed a Phase I clinical trial each, and Alexza is preparing an investigational new drug application for AZ-003.

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.
  
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.

- 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:

  • Furosemide GR
  
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.

Buyer Products:

  • Glumetza (Metformin 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.

Buyer Products:

  • Metformin/Sulfonylurea GR
  
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.

Buyer 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:

  • Gabapentin GR

Target Products:

  • AZ-001 (Staccato Prochlorperazine)
  • AZ-002 (Staccato Alprazolam)
  • AZ-004 (Staccato Loxapine)
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.

Buyer Products:

  • NeuGene Antisense Compound
  
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.

Buyer Products:

  • Gabapentin GR

Target Products:

  • AZ-003 (Staccato Fentanyl)
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.

Buyer Products:

  • Gastric Retention System
  
Pulmonary Delivery  
Powder
Drug Delivery Technology used to deliver drugs in a powder of hollow, porous spheres containing drugs for deep lung delivery.

Target Products:

  • Staccato 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.

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
  Pfizer Inc. n/a 179,521.061 15.19 12.28 3.53 3.54 10.09
Johnson & Johnson n/a 174,197.162 16.24 15.99 3.44 3.30 6.17
Bristol Myers Squibb Co. n/a 47,761.793 14.99 20.69 2.47 2.53 10.22
Bayer AG (ADR) n/a 34,231.124 17.57 15.63 0.96 1.07 6.21
Schering-Plough Corp. n/a 28,258.433 66.11 30.30 2.92 2.82 3.94
Teva Pharmaceutical Industries Ltd (ADR) n/a 24,262.693 n/a 19.68 4.32 2.88 -38.67
Barr Pharmaceuticals, Inc. n/a 5,412.485 18.04 17.25 4.35 4.45 4.81
Mylan Laboratories Inc. n/a 4,388.706 26.46 17.96 3.49 3.42 5.57
Biovail Corporation (USA) n/a 4,342.384 18.34 12.44 4.64 4.37 20.70
KOS Pharmaceuticals, Inc. n/a 2,227.944 18.30 27.58 2.96 2.57 4.70
Alpharma Inc. n/a 1,349.774 10.00 18.49 2.44 2.13 2.00
XenoPort, Inc. n/a 488.398 n/a -8.51 102.75 73.75 7.44
Flamel Technologies S.A. (ADR) n/a 475.629 n/a -28.63 20.15 10.01 n/a
SkyePharma PLC (ADR) n/a 446.438 n/a n/a 3.68 n/a -4.03
IVAX Diagnostics, Inc. n/a 70.716 n/a n/a 3.58 n/a 3.18
Access Pharmaceuticals n/a 4.407 n/a n/a 4.80 n/a -0.26
Ranbaxy Laboratories Ltd. n/a n/a n/a n/a n/a n/a n/a
INTEC PHARMA LTD. n/a n/a n/a n/a n/a n/a n/a
Target
  Nektar Therapeutics n/a 1,830.612 n/a -16.53 14.50 11.25 7.79

- 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
  Biovail Corporation (USA) n/a 4,342.384 18.34 12.44 4.64 4.37 20.70

- 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
  Esprit Pharma Holding Company, Inc. 46.00% n/a n/a n/a n/a n/a n/a
Biovail Corporation (USA) 2.00% 4,342.384 18.34 12.44 4.64 4.37 20.70
LG Group 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
  Bristol Myers Squibb Co. n/a 47,761.793 14.99 20.69 2.47 2.53 10.22
Biovail Corporation (USA) n/a 4,342.384 18.34 12.44 4.64 4.37 20.70
New River Pharmaceuticals, Inc. n/a 1,215.286 n/a -30.96 n/a 102.12 -187.49
AVI BioPharma, Inc. n/a 254.824 n/a n/a 53.27 15.91 4.94
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
LG Group n/a n/a n/a n/a n/a n/a n/a
Esprit Pharma Holding Company, Inc. 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 4.4 2.7 7.1
Other Revenue 0.0 0.0 0.0
Total Revenue 4.4 2.7 7.1
Cost of Revenue 0.9 0.0 0.9
SG&A Expense 11.6 7.9 19.5
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 18.4 22.8 41.1
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) -1.1 0.0 -1.1
Total Expenses 29.9 30.7 60.5
Operating Income -25.5 -27.9 -53.4
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -0.5 1.4 1.0
Other, Net 1.4 0.0 1.4
Income Before Taxes -24.5 -26.8 -51.3
Income Taxes 0.0 0.0 0.0
Income After Taxes -24.5 -26.8 -51.3
Net Income - Excl. Xord. Items -24.5 -26.8 -51.3
Net Income - Incl. Xord. Items -24.5 -26.8 -51.3
Preferred Dividends -0.8 0.0 -0.8
Income Avail. to Common -25.3 -26.8 -52.1
Share Items
Basic Avg. Shares Outstanding 39.8 9.2 49.0
Basic EPS - Excl. Xord. Items -0.64 -2.99 -1.05
Basic EPS - Incl. Xord. Items -0.64 -2.99 -1.05
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 39.8 9.2 49.0
F.D. EPS - Excl. Xord. Items -0.64 -2.99 -1.05
F.D. EPS - Incl. Xord. Items -0.64 -2.99 -1.05
Balance Sheet
Assets
Cash and Equivalents 7.6 19.5 27.1
ST Investments 51.5 25.7 77.2
Accounts Receivable 2.0 0.0 2.0
Inventory 0.9 0.0 0.9
Prepayments and Advances 1.1 1.2 2.3
Other Current Assets 0.0 0.0 0.0
Current Assets 63.0 46.4 109.4
PPE 0.0 8.9 8.9
Accum D&A 0.0 -3.1 -3.1
PPE, Net 3.1 5.8 9.0
Goodwill & Intangibles 0.0 0.0 0.0
Note Receivable 0.0 2.3 2.3
Other Assets 0.0 0.0 0.0
Other LT Assets 0.2 0.5 0.7
Total Assets 66.4 55.0 121.4
Liabilities
Accounts Payable 1.6 1.5 3.1
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 2.8 5.1 7.9
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 0.0 1.4 1.4
Other (Current) Liabilities 3.7 0.0 3.7
Current Liab. 8.1 8.0 16.0
LT Debt 0.0 0.0 0.0
Capitalized Lease Obligations 0.0 4.3 4.3
Total LT Debt 0.0 4.3 4.3
Other LT Liab. 51.5 0.0 51.5
Total Liabilities 59.6 12.3 71.9
Shareholders Equity
Preferred Stock 12.0 107.2 119.2
Common Stock 139.6 0.0 139.6
Additional Paid in Capital 0.0 3.3 3.3
Retained Earnings -144.5 -66.3 -210.7
Other Equity -0.4 -1.5 -1.9
Total Equity 6.8 42.8 49.5
Total Liab. & Equity 66.4 55.0 121.4
Shares Outstanding 40.7 9.5 50.2
Cash Flow
Operating Cash Flow
CF Net Income -17.7 -26.8 -44.5
CF Depreciation 0.8 1.8 2.6
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items -0.6 4.2 3.6
Change in Working Capital 52.8 0.7 53.5
Total Cash From Operating Activities 35.3 -20.0 15.3
Investing Cash Flow
Capital Expenditures -0.6 -4.5 -5.1
Other Investing Cash Flows -29.1 -14.4 -43.5
Total Cash From Investing Activities -29.7 -18.9 -48.6
Financing Cash Flow
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 1.3 50.1 51.4
Purchase and Retirement of Debt -9.7 2.3 -7.4
Other Financing Cash Flow 0.0 0.0 0.0
Total Cash From Financing Activities -8.4 52.4 44.0
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash -2.8 13.5 10.7
Cash Interest Paid 0.5 0.2 0.7