Summary

Other Scenarios:

Buyer: Alexion Pharmaceuticals, Inc. (ALXN) Last Price: 74.61 Market Cap.: 2.80B
Target: Pharmion Corporation (PHRM) Last Price: 64.91 Market Cap.: 2.42B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 930
Biopharmaceuticals 381

- 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: 6)
  • Anti-MBL Antibody
  • Soliris (Eculizumab)
  • Anti-CD200 Antibody
  • DC-SIGN Monoclonal Antibody
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: 5)
  • Phase Forward Incorporated (PFWD)
  • XOMA Limited (XOMA)
  • Micromet Inc. (MITI)
  • Brigham and Women's Hospital
Target (Total: 6)
  • GPC Biotech AG (ADR) (GPCB)
  • Celgene Corporation (CELG)
  • salesforce.com, inc. (CRM)
  • MethylGene Inc. (MYG:CA)
Buyer (Total: 2)
  • Government - United States
  • The Procter & Gamble Company (PG)
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 296 417
Revenue Per Employee 299,604.6 647,481.4
Total Revenue 22.1 67.3
Total Expenses 44.0 90.4
Other Revenue 0.0 0.0
Cost of Revenue 2.2 18.2
SG&A Expense 24.9 32.5
Research & Development 16.9 29.1
Other Operating Expense 0.0 0.0
Operating Income -21.9 -23.0
Unusual Income 0.0 8.0
LT Debt to Capital 67.75 0
Fwd P/E -28.88 -54.38
Fwd P/Rev 43.06 9.09
Book Value 92.6 380.0
Curr Portion of LTD/Cap Lease 0.3 0.0

Individual Company Summary

Focused

Buyer

Sector Pure-Play (): Healthcare > Biopharmaceuticals

Target

Focused (): Healthcare > Biopharmaceuticals > Oncology

Business Description

Buyer

Alexion Pharmaceuticals, Inc. (Alexion) is a biotechnology company working to develop and deliver drug therapies for patients with serious and life-threatening medical conditions. It is engaged in the discovery and development of therapeutic products aimed at treating patients with an array of severe disease states, including hematologic diseases, cancer and autoimmune disorders. It has focused its product development programs on anti-inflammatory therapeutics. Alexion?s lead product candidate, eculizumab, is a genetically altered antibody known as a C5 complement inhibitor (C5 Inhibitor), which is designed to selectively block the production of inflammation-causing proteins in the complement cascade. It is focusing its efforts on the development of its lead product candidate, Soliris (eculizumab), for the treatment of a blood disorder known as paroxysmal nocturnal hemoglobinuria (PNH). In July 2006, it acquired a manufacturing plant in Smithfield, Rhode Island.

Target

Pharmion Corporation (Pharmion) is a global pharmaceutical company that acquires, develops and commercializes products for the treatment of hematology and oncology patients. It 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, 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 after the failure of standard therapies. In November 2006, it acquired Cabrellis Pharmaceuticals Corporation.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 91.38 72.65
Operating Margin % -330.72 -40.39
Quick Ratio 4.31 4.49
Current Ratio 5.73 4.89
Coverage Ratio -0.06 -0.08
Total Assets 321.1 451.5
Return on Equity % -128.7 -26.47
Return on Assets % -37.12 -22.28
Cash+ ST Inv. Per Share 3.05 6.96
Total Debt 194.8 0.0
Total Debt to Equity % 210.35 0
Total Debt to Tangible Equity % 268.11 0
Debt to Asset % 60.68 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.
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.
  
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
Ophthalmology
The Ophthalmology Subsector includes therapeutics that treat eye disorders, infections, inflammations and irritations.
  
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.
  
Transplantation
The Transplantation Subsectors includes therapeutics that treat rejection and infection associated with tissue transplantation into the human body.
  

- 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
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:

  • Anti-MBL Antibody
  
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)
  
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.

Target Products:

  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Oral Azacitidine
  
Red Blood Cell (RBC) Disorders  
Hemoglobinuria  
Monoclonal Antibodies
Therapeutics that treat hemoglobinuria by specifically binding to the C5 complement component and inhibiting its activation.

Buyer Products:

  • Soliris (Eculizumab)
  
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)
  
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:

  • Soliris (Eculizumab)
  • Anti-MBL Antibody
  
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
  
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:

  • Anti-CD200 Antibody
  • DC-SIGN Monoclonal Antibody
  
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)
  
Ophthalmology  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of eye disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Intravitreal Eculizumab
  
Respiratory System  
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:

  • Nebulized Eculizumab
  
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)
  
Transplantation  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the management of rejection and infection associated with transplantation in very early stages of research where no human subject is involved.

Buyer Products:

  • Soliris (Eculizumab)
  

- 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
Overlap
  Genentech, Inc. n/a 69,904.179 25.59 25.13 6.10 6.08 7.90
Millennium Pharmaceuticals, Inc. n/a 4,823.660 0.00 171.78 9.92 10.15 7.52
Buyer
  Abbott Laboratories n/a 86,210.724 44.74 19.60 3.46 3.36 1,009.56
Genentech, Inc. n/a 69,904.179 25.59 25.13 6.10 6.08 7.90
AstraZeneca plc (ADR) n/a 60,783.260 10.55 10.56 2.13 2.14 n/a
Amgen, Inc. n/a 48,726.360 15.40 11.14 3.28 3.41 22.71
Novo Nordisk A/S (ADR) n/a 40,839.553 22.92 21.97 5.14 5.23 6.55
Baxter International Inc. n/a 36,579.643 22.02 21.16 3.32 3.33 7.89
Millennium Pharmaceuticals, Inc. n/a 4,823.660 0.00 171.78 9.92 10.15 7.52
Medarex, Inc. n/a 1,282.895 0.00 -44.83 27.25 27.99 2.62
Aspreva Pharmaceuticals Corporation n/a 916.399 7.39 6.27 3.85 3.65 2.38
XOMA Limited n/a 375.795 0.00 -20.33 4.78 5.25 40.62
Dyax Corp. n/a 214.472 0.00 -2.65 19.34 18.96 7.01
Neurogen Corporation n/a 132.279 0.00 -2.27 7.54 7.52 1.94
Target
  Pfizer Inc. n/a 155,924.447 10.49 10.78 3.24 3.32 6.39
GlaxoSmithKline plc (ADR) n/a 138,494.444 13.08 12.89 3.08 3.06 13.50
sanofi-aventis (ADR) n/a 121,968.460 20.78 12.12 2.81 3.09 n/a
Genentech, Inc. n/a 69,904.179 25.59 25.13 6.10 6.08 7.90
Eli Lilly & Co. n/a 58,757.415 26.34 15.01 3.32 3.29 5.60
Celgene Corporation n/a 19,157.959 110.08 51.93 15.13 13.89 8.18
Millennium Pharmaceuticals, Inc. n/a 4,823.660 0.00 171.78 9.92 10.15 7.52
MGi Pharma, Inc. n/a 3,281.750 0.00 116.40 8.89 7.99 172.67
SuperGen, Inc. n/a 195.426 120.84 17.70 10.83 8.96 2.23
Poniard Pharmaceuticals, Inc. n/a 143.137 0.00 -3.83 n/a 4.39 1.65
Vion Pharmaceuticals, Inc. n/a 42.656 0.00 -1.08 2,100.37 2,193.98 5.16

- 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
  Phase Forward Incorporated n/a 869.973 45.77 46.49 6.87 6.95 5.19
XOMA Limited n/a 375.795 0.00 -20.33 4.78 5.25 40.62
Micromet Inc. n/a 85.177 0.00 -3.14 3.38 4.96 6.54
Brigham and Women's Hospital 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
Target
  GPC Biotech AG (ADR) 66.00% 146.660 0.00 n/a 4.66 n/a 1.92
Celgene Corporation n/a 19,157.959 110.08 51.93 15.13 13.89 8.18
salesforce.com, inc. n/a 6,951.366 604.67 469.08 10.28 9.72 18.84
MethylGene Inc. n/a 110.047 0.00 n/a 7.57 n/a 2.20
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
  Government - United States 55.90% n/a n/a n/a n/a n/a n/a
The Procter & Gamble Company 37.70% 223,668.126 21.10 20.78 2.87 2.74 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% 20,345.156 10.37 14.20 0.23 0.22 16.34
McKesson Corporation 9.00% 18,303.746 18.64 19.14 0.19 0.18 5.82
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
  The Procter & Gamble Company n/a 223,668.126 21.10 20.78 2.87 2.74 n/a
XOMA Limited n/a 375.795 0.00 -20.33 4.78 5.25 40.62
Micromet Inc. n/a 85.177 0.00 -3.14 3.38 4.96 6.54
CuraGen Corporation n/a 46.440 3.82 -0.76 5.18 641.61 1.23
Yale University 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
Brigham and Women's Hospital n/a n/a n/a n/a n/a n/a n/a
Target
  Pfizer Inc. n/a 155,924.447 10.49 10.78 3.24 3.32 6.39
Cardinal Health, Inc. n/a 20,345.156 10.37 14.20 0.23 0.22 16.34
Celgene Corporation n/a 19,157.959 110.08 51.93 15.13 13.89 8.18
McKesson Corporation n/a 18,303.746 18.64 19.14 0.19 0.18 5.82
MGi Pharma, Inc. n/a 3,281.750 0.00 116.40 8.89 7.99 172.67
GPC Biotech AG (ADR) n/a 146.660 0.00 n/a 4.66 n/a 1.92
MethylGene Inc. n/a 110.047 0.00 n/a 7.57 n/a 2.20
Dainippon Sumitomo Pharma Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
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
Nippon Shinyaku 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
Ash Stevens, Inc. 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 38.4 255.9 294.3
Other Revenue 0.0 0.0 0.0
Total Revenue 38.4 255.9 294.3
Cost of Revenue 3.3 70.0 73.3
SG&A Expense 91.3 125.2 216.5
Depreciation & Amortization 0.0 9.9 9.9
Research & Development 70.7 91.9 162.6
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 0.0 62.3 62.3
Total Expenses 165.3 359.2 524.5
Operating Income -126.9 -103.3 -230.2
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 7.3 8.1 15.4
Other, Net 0.0 0.0 0.0
Income Before Taxes -119.6 -95.3 -214.8
Income Taxes -0.4 5.3 5.0
Income After Taxes -119.2 -100.6 -219.8
Net Income - Excl. Xord. Items -119.2 -100.6 -219.8
Net Income - Incl. Xord. Items -119.2 -100.6 -219.8
Income Avail. to Common -119.2 -100.6 -219.8
Share Items
Basic Avg. Shares Outstanding 36.7 37.0 73.7
Basic EPS - Excl. Xord. Items n/a n/a -2.98
Basic EPS - Incl. Xord. Items n/a n/a -2.98
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 36.7 37.0 73.7
F.D. EPS - Excl. Xord. Items n/a n/a -2.98
F.D. EPS - Incl. Xord. Items n/a n/a -2.98
Balance Sheet
Assets
Cash and Equivalents 91.5 135.0 226.5
ST Investments 20.4 122.6 143.0
Accounts Receivable 31.6 45.4 77.0
Inventory 32.2 13.0 45.2
Prepayments and Advances 15.0 0.0 15.0
Other Current Assets 0.0 14.0 14.0
Current Assets 190.7 330.0 520.7
Accum D&A 0.0 0.0 0.0
PPE, Net 93.0 11.0 103.9
Goodwill & Intangibles 20.0 104.7 124.7
Other Assets 0.0 0.0 0.0
Other LT Assets 17.5 5.8 23.3
Total Assets 321.1 451.5 772.6
Liabilities
Accounts Payable 10.5 10.1 20.6
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 22.5 57.5 79.9
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 0.3 0.0 0.3
Other (Current) Liabilities 0.0 0.0 0.0
Current Liab. 33.3 67.5 100.8
LT Debt 194.0 0.0 194.0
Capitalized Lease Obligations 0.6 0.0 0.6
Total LT Debt 194.6 0.0 194.6
Deferred Taxes 0.0 3.0 3.0
Other LT Liab. 0.6 1.0 1.6
Total Liabilities 228.5 71.5 300.0
Shareholders Equity
Common Stock 0.0 0.0 0.0
Additional Paid in Capital 811.8 627.5 1,439.3
Retained Earnings -716.9 -263.2 -980.2
Treasure Stock -1.3 0.0 -1.3
Other Equity -0.9 15.7 14.8
Total Equity 92.6 380.0 472.7
Total Liab. & Equity 321.1 451.5 772.6
Shares Outstanding 37.3 37.2 74.5
Cash Flow
Operating Cash Flow
CF Net Income -119.2 -100.6 -219.8
CF Depreciation 4.3 12.4 16.6
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 26.3 3.4 29.7
Change in Working Capital -57.5 20.2 -37.4
Total Cash From Operating Activities -146.2 -64.7 -210.9
Investing Cash Flow (not calculated)
Capital Expenditures -67.6 -6.7 -74.3
Other Investing Cash Flows 69.7 -32.1 37.5
Total Cash From Investing Activities 2.0 -38.8 -36.8
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 178.1 6.1 184.3
Purchase and Retirement of Debt -8.3 -0.9 -9.3
Other Financing Cash Flow -0.3 130.8 130.5
Total Cash From Financing Activities 195.5 135.9 331.5
Exchange Rate Effects 0.1 3.8 3.9
Net Change in Cash 51.5 36.2 87.7
Cash Taxes Paid 0.0 11.4 11.4
Cash Interest Paid 2.1 0.4 2.5