Summary

Other Scenarios:

Buyer: Alpharma Inc. (ALO) Last Price: 36.99 Market Cap.: 1.99B
Target: Medicis Pharmaceutical Corporation (MRX) Last Price: 13.80 Market Cap.: 782.70M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 843
Biopharmaceuticals 365
Medical Devices   225
Veterinary Products and Services   7

- 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: 10)
  • Tirosint Capsule (Levothyroxine Sodium)
  • Ketoprofen Transfersome Gel
  • Kadian (Morphine Sulphate Extended Release)
  • Embeda (Abuse Resistant Morphine Sulphate/Naltrexone)
Target (Total: 19)
  • Plexion/Plexion TS/Plexion SCT (Sodium Sulfacetamide/Sulfur)
  • Dynacin (Minocycline Hydrochloride)
  • Solodyn Extended Release Tablet (Minocycline HCl)
  • Ziana Gel (Clindamycin/Tretinoin)
Buyer
  • Alpharma Animal Health Division
Target
  • LipSonix Ultrasound Transducer
  • Restylane Fine Lines (Hyaluronic Acid)
  • Restylane (Hyaluronic Acid)
  • Perlane (Hyaluronic Acid)

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 9)
  • Bayer AG (ADR) (BAYRY)
  • Archer Daniels Midland Company (ADM)
  • Koninklijke DSM N.V. (ADR) (RDSMY)
  • Cambrex Corporation (CBM)
Target (Total: 5)
  • Sanofi-Aventis SA (ADR) (SNY)
  • Abbott Laboratories (ABT)
  • QMed, Inc. (QMED)
  • Contract Pharmaceuticals Limited
Buyer (Total: 4)
  • Teva Pharmaceutical Industries Ltd (ADR) (TEVA)
  • Alcon, Inc. (ACL)
  • Enzon Pharmaceuticals, Inc. (ENZN)
  • Accentia Biopharmaceuticals, Inc (ABPIQ)
Target (Total: 5)
  • McKesson Corporation (MCK)
  • Cardinal Health, Inc. (CAH)
  • BioMarin Pharmaceutical Inc. (BMRN)
  • Taro Pharmaceutical Industries Ltd. (TAROF)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 2,000 577
Revenue Per Employee 352,361.4 985,039.2
Total Revenue 175.7 115.4
Total Expenses 166.0 129.7
Other Revenue 0.0 0.0
Cost of Revenue 63.1 10.8
SG&A Expense 89.3 71.6
Research & Development 13.5 7.1
Other Operating Expense 0.0 2.6
Operating Income 9.7 -14.3
Unusual Income 0.0 30.5
LT Debt to Capital 27.66 21.8
Fwd P/E 106.50 10.21
Fwd P/Rev 2.81 1.56
Book Value 784.6 606.9
Curr Portion of LTD/Cap Lease 0.0 0.2

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Biopharmaceuticals > Pain Management

Target

Focused (): Healthcare > Biopharmaceuticals > Dermatology

Business Description

Buyer

Alpharma Inc. is a global specialty pharmaceutical company that develops, manufactures and markets pharmaceutical products for humans and animals. As of April 2, 2008, the Company operated in two business segments: Pharmaceuticals and Animal Health (AH). The Company markets an extended release morphine sulfate pain medication sold under the trademark KADIAN, in the United States and a topical non-steroidal, anti-inflammatory (NSAID) patch product sold in the United States, under the trademark FLECTOR. The Company manufactures and markets animal health products, consisting primarily of medicated feed additives (MFAs) and water soluble therapeutics for production animals, principally poultry, cattle and swine. In April 2008, ALPHARMA, Inc. announced the divestiture of its Active Pharmaceutical Ingredients (API) business to 3i.

Target

Medicis Pharmaceutical Corporation (Medicis) is an independent specialty pharmaceutical company focused primarily on helping patients attain a healthy and youthful appearance and self-image through the development and marketing in the United States of products for the treatment of dermatological, aesthetic and podiatric conditions. It also markets products in Canada for the treatment of dermatological and aesthetic conditions. It offers a range of products addressing various conditions or aesthetic improvements, including facial wrinkles, acne, fungal infections, rosacea, hyperpigmentation, photoaging, psoriasis, skin and skin-structure infections, seborrheic dermatitis and cosmesis (improvement in the texture and appearance of skin). It offers 18 branded products, including PERLANE (hyaluronic acid), RESTYLANE (hyaluronic acid), SOLODYN (minocycline HCl, USP), TRIAZ (benzoyl peroxide), VANOS (fluocinonide) Cream 0.1%, and ZIANA (clindamycin phosphate 1.2% and tretinoin 0.025%) Gel.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 63.54 91.88
Operating Margin % -14.42 13.17
Quick Ratio 3.65 1.98
Current Ratio 4.49 2.49
Coverage Ratio -0.07 0.33
Total Assets 1,353.7 971.1
Return on Equity % -11.9 6.94
Return on Assets % -6.9 4.34
Cash+ ST Inv. Per Share 13.54 5.42
Total Debt 305.1 169.3
Total Debt to Equity % 38.89 27.9
Total Debt to Tangible Equity % 67.82 59.81
Debt to Asset % 22.54 17.44

Product Summary

Sector Buyer Target
Healthcare
Biopharmaceuticals
Dermatology
The Dermatology Subsector includes therapeutics that treat disorders affecting the skin.
  
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.
  
Musculoskeletal System
The Musculoskeletal System Subsector includes therapeutics that treat disorders of the bones, joints, ligaments, tendons, and soft tissue involved with them.
  
Pain Management
The Pain Management Subsector includes therapeutics that treat and management pain.
  
Medical Devices  
Plastic/Reconstructive Surgery
The Plastic/Reconstructive Surgery Subsector includes medical devices that treat and modify a patient's external appearance.
  
Veterinary Products and Services  
Veterinary Pharmaceuticals
The Veterinary Pharmaceuticals Subsector includes companies that manufacture veterinary pharmaceuticals and vaccines for the prevention and treatment of veterinary diseases.

Buyer Products:

  • Alpharma Animal Health Division
  

- 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
Dermatology  
Acne  
Rosacea  
Para Aminobenzoic Acid (PABA) Inhibitors
Therapeutics that treat chronic inflammatory disorder of the face characterized by redness and pimple formation by inhibiting bacterial folic acid synthesis.

Target Products:

  • Plexion/Plexion TS/Plexion SCT (Sodium Sulfacetamide/Sulfur)
  
Vulgaris  
Antibacterial Agents  
Tetracyclines
Therapeutics that treat acne caused by bacterial infections by inhibiting protein synthesis and also causing alterations in cytoplasmic membranes.

Target Products:

  • Dynacin (Minocycline Hydrochloride)
  • Solodyn Extended Release Tablet (Minocycline HCl)
  
Antibacterial Agents/Retinoids
Therapeutics that treat acne by preventing bacterial growth and helping in cell differentiation.

Target Products:

  • Ziana Gel (Clindamycin/Tretinoin)
  
Keratolytic Agents
Therapeutics that soften, separate, and cause the shedding of skin.

Target Products:

  • Triaz (Benzoyl Peroxide)
  
Para Aminobenzoic Acid (PABA) Inhibitors
Therapeutics that treat bacterial infections of the skin by inhibiting a bacterial enzyme responsible for synthesis of folic acid.

Target Products:

  • Plexion/Plexion TS/Plexion SCT (Sodium Sulfacetamide/Sulfur)
  
Aging Disorders  
Wrinkles  
Acetylcholine Inhibitors
Therapeutics that treat wrinkling through prevention of muscle contractions that can result in the formation of facial lines.

Target Products:

  • Reloxin (Botulinum Toxin Type A)
  
Lesion/Scaling Disorders  
Dermatitis  
Atopic (Eczema)  
Steroidal Anti-Inflammatory Drugs (SAID)
Therapeutics that treat atopic dermatoses by inhibiting the accumulation of inflammatory cells like leucocytes and macrophages at the inflammation site.

Target Products:

  • Synalar (Fluocinolone Acetonide)
  
Seborrheic (Dandruff)  
Antifungal Agents  
Imidazoles
Therapeutics that treat and prevent skin diseases caused by fungi.

Target Products:

  • Loprox (Ciclopirox)
  
Para Aminobenzoic Acid (PABA) Inhibitors
Therapeutics that treat bacterial infections of the skin by inhibiting a bacterial enzyme responsible for synthesis of folic acid.

Target Products:

  • Plexion/Plexion TS/Plexion SCT (Sodium Sulfacetamide/Sulfur)
  
Dermatoses  
Steroidal Anti-Inflammatory Drugs (SAID)
Therapeutics that counteract or suppress inflammation by inhibiting the accumulation of inflammatory cells like leucocytes and macrophages at the inflammation site.

Target Products:

  • Vanos (Fluocinonide)
  • Lidex (Fluocinonide)
  
Pruritus  
Steroidal Anti-Inflammatory Drugs (SAID)
Therapeutics that counteract or suppress inflammation by inhibiting the accumulation of inflammatory cells like leucocytes and macrophages at the inflammation site.

Target Products:

  • Vanos (Fluocinonide)
  
Psoriasis  
Steroidal Anti-Inflammatory Drugs (SAID)
Therapeutics that counteract or suppress inflammation by inhibiting the accumulation of inflammatory cells like leucocytes and macrophages at the inflammation site.

Target Products:

  • Synalar (Fluocinolone Acetonide)
  
Pigmentation Disorders  
Hyperpigmentation  
Enzymatic Oxidation Inhibitors
Therapeutics that treat disorders characterized by darkening of the skin by inhibiting metabolic processes of pigment producing skin cells.

Target Products:

  • Esoterica (Hydroquinone)
  
Endocrinology/Metabolism
Intermediary Metabolism Disorders  
Urea Cycle Disorders  
Glutamine Acetylyzing Agents
Therapeutics that conjugate with glutamine to help excrete nitrogen waste.

Target Products:

  • Buphenyl (Sodium Phenylbutyrate)
  • Ammonul (Sodium Phenylacetate, Sodium Benzoate)
  
Pituitary Gland Disorders  
Pituitary Hyperthyroidism (TSH-Induced)  
Thyroid Hormones
Hormones that affect the rate of cell metabolism and blood calcium levels.

Buyer Products:

  • Tirosint Capsule (Levothyroxine Sodium)
  
Thyroid Gland Disorders  
Hypothyroidism  
Thyroid Hormones
Therapeutics that treat a deficiency in thyroid activity by supplementing thyroid hormones.

Buyer Products:

  • Tirosint Capsule (Levothyroxine Sodium)
  
Immunology  
Autoimmune Disorders  
Psoriasis  
Steroidal Anti-Inflammatory Drugs (SAID)
Therapeutics that treat a chronic autoimmune disease characterized by softening, separating, causing the shedding of the horny layer of the skin with a steroidal compound.

Target Products:

  • Synalar (Fluocinolone Acetonide)
  • Vanos (Fluocinonide)
  
Infectious Diseases  
Bacterial  
Antibacterial Agents  
Broad Spectrum  
Antibiotics  
Cephalosporin Derivatives
Therapeutics that treat a wide variety of infections by inhibiting bacterial cell wall synthesis.

Target Products:

  • Omnicef (Cefdinir)
  
Tetracyclines
Therapeutics that treat a wide variety of infections by inhibiting protein synthesis and also causing alterations in cytoplasmic membranes.

Target Products:

  • Dynacin (Minocycline Hydrochloride)
  
Mycological (Fungal)  
Antifungal Agents  
Narrow Spectrum  
Dermatology  
Tinea Corporis (Ringworm)  
Azoles  
Imidazoles
Therapeutics that treat fungal infections of the skin characterized by scaly, red rings by increasing permeability of the cell wall and causing a toxic build up of hydrogen peroxide.

Target Products:

  • Loprox (Ciclopirox)
  
Tinea Cruris (Jock Itch)  
Azoles  
Imidazoles
Therapeutics that treat fungal infections of the groin and perineum by increasing permeability of the cell wall and causing a toxic build up of hydrogen peroxide.

Target Products:

  • Loprox (Ciclopirox)
  
Tinea Pedis  
Azoles  
Imidazoles
Therapeutics that treat fungal infections of the feet by increasing permeability of the cell wall and causing a toxic build up of hydrogen peroxide.

Target Products:

  • Loprox (Ciclopirox)
  
Tinea Versicolor  
Azoles  
Imidazoles
Therapeutics that treat fungal infections of skin exposed to the sun characterized by patches of depigmentation by increasing permeability of the cell wall and causing a toxic build up of hydrogen peroxide.

Target Products:

  • Loprox (Ciclopirox)
  
Musculoskeletal System  
Skeletal Disorders  
Joint Disorders  
Osteoarthritis (OA)  
Non-Steroidal Anti-Inflammatory Drugs (NSAID)  
Non-Specific Cyclooxygenase Inhibitors (COX Inhibitors)
Therapeutics that treat inflammation by non-specifically inhibiting the action of cyclooxygenase.

Buyer Products:

  • Ketoprofen Transfersome Gel
  
Pain Management  
Anesthesia  
General (Systemic)  
Adjunctive  
Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alters both the perception of pain as well as the emotional response to pain.

Buyer Products:

  • Kadian (Morphine Sulphate Extended Release)
  
Narcotics  
Opioids
Therapeutics that treat pain by binding to certain nervous system receptors which alter both the perception of pain as well as the emotional response to pain.

Buyer Products:

  • Embeda (Abuse Resistant Morphine Sulphate/Naltrexone)
  • Kadian (Morphine Sulphate Extended Release)
  
Non-Narcotics  
Non-Steroidal Anti-Inflammatory Drugs (NSAID)  
Non-Specific Cyclooxygenase Inhibitors (COX Inhibitors)
Therapeutics that treat pain by non-specifically inhibiting the action of cyclooxygenase.

Buyer Products:

  • Flector Patch (Diclofenac Epolamine)
  
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:

  • ALO-02 (Oxycodone/Naltrexone)
  • ELADUR (TRANSDUR-Bupivacaine)
  • ALO-03
  • ALO-04
  
Medical Devices  
Plastic/Reconstructive Surgery  
Surgical  
Procedure/Region Specific  
Liposuction/Lipolysis
Suction and/or other devices used to remove fat from the body, or to reduce fat by disrupting fat cells.

Target Products:

  • LipSonix Ultrasound Transducer
  
Treatment  
Wrinkle Removal  
Hyaluronic Acid  
Veterinary Products and Services  
Veterinary Pharmaceuticals
The Veterinary Pharmaceuticals Subsector includes companies that manufacture veterinary pharmaceuticals and vaccines for the prevention and treatment of veterinary diseases.

Buyer Products:

  • Alpharma Animal Health Division
  

- 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 115,304.202 10.92 7.15 2.36 2.37 4.27
Novartis AG (ADR) n/a 108,257.444 14.32 12.41 2.55 2.54 3.67
Abbott Laboratories n/a 81,473.569 17.92 15.86 2.83 2.76 27.79
Bristol Myers Squibb Co. n/a 45,599.400 11.65 13.73 2.20 2.20 6.62
Eli Lilly & Co. n/a 43,181.474 17.90 9.45 2.12 2.08 3.77
Teva Pharmaceutical Industries Ltd (ADR) n/a 33,970.080 17.95 14.84 3.14 3.07 7.59
Perrigo Company n/a 2,929.556 20.97 16.12 1.53 1.37 4.71
Endo Pharmaceuticals n/a 2,824.646 11.90 10.70 2.32 2.22 4.42
King Pharmaceuticals, Inc. n/a 2,479.481 9.60 8.48 1.42 1.63 1.27
XenoPort, Inc. n/a 555.251 n/a -8.50 9.72 14.35 5.84
Acura Pharmaceuticals, Inc. n/a 319.570 11.84 n/a 7.42 n/a 8.28
Target
  Johnson & Johnson n/a 162,478.703 12.89 12.93 2.52 2.52 9.47
Sanofi-Aventis SA (ADR) n/a 85,433.983 13.51 8.76 2.35 2.24 n/a
Allergan, Inc. n/a 11,299.274 19.21 14.35 2.55 2.53 24.19
Warner Chilcott Ltd. n/a 3,523.439 27.74 9.79 3.82 3.73 n/a
Valeant Pharmaceuticals International n/a 1,794.575 14.81 66.12 2.51 2.34 8.64
Taro Pharmaceutical Industries Ltd. n/a 288.000 7.20 n/a 0.85 n/a 1.40
Obagi Medical Products, Inc. n/a 169.348 11.38 12.66 1.59 1.61 3.26
BioForm Medical, Inc. n/a 41.231 n/a -1.64 0.61 0.67 0.55
Uluru Inc. n/a 18.336 n/a n/a 13.97 n/a 0.92
Access Pharmaceuticals, Inc. n/a 5.538 n/a -0.37 20.66 5.86 n/a
Artes Medical, Inc. n/a 0.079 n/a n/a 0.01 n/a n/a
Groupe L'Oreal n/a n/a n/a n/a n/a n/a n/a
Nestle S.A. n/a n/a n/a 11.04 n/a n/a n/a
DFB Pharmaceuticals, Inc. 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
  Bayer AG (ADR) n/a 42,099.954 5.82 10.59 0.92 1.04 n/a
Archer Daniels Midland Company n/a 18,185.796 7.54 8.16 0.23 0.24 1.40
Koninklijke DSM N.V. (ADR) n/a 3,957.680 4.32 3.99 0.29 n/a 0.65
Cambrex Corporation n/a 131.867 14.42 11.65 0.52 0.60 1.98
Kaken Pharmaceutical Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
Actavis Group hf. n/a n/a n/a n/a n/a n/a n/a
Roquette America, Inc. n/a n/a n/a n/a n/a n/a n/a
IBSA Institut Biochimique SA n/a n/a n/a n/a n/a n/a n/a
Tris Pharma, Inc. n/a n/a n/a n/a n/a n/a n/a
Target
  Sanofi-Aventis SA (ADR) n/a 85,433.983 13.51 8.76 2.35 2.24 n/a
Abbott Laboratories n/a 81,473.569 17.92 15.86 2.83 2.76 27.79
QMed, Inc. n/a 0.017 n/a n/a 0.00 n/a 0.01
Contract Pharmaceuticals Limited n/a n/a n/a n/a n/a n/a n/a
Ipsen S.A. 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
  Teva Pharmaceutical Industries Ltd (ADR) n/a 33,970.080 17.95 14.84 3.14 3.07 7.59
Alcon, Inc. n/a 25,696.909 12.85 14.04 4.10 4.07 6.98
Enzon Pharmaceuticals, Inc. n/a 260.282 n/a -32.33 1.32 1.51 n/a
Accentia Biopharmaceuticals, Inc n/a 6.040 n/a n/a 0.39 n/a n/a
Target
  McKesson Corporation 52.20% 10,219.854 9.55 9.22 0.10 0.09 3.91
Cardinal Health, Inc. 16.90% 11,939.131 9.57 8.71 0.13 0.12 7.22
BioMarin Pharmaceutical Inc. n/a 1,720.007 193.42 56.10 7.11 5.57 8.17
Taro Pharmaceutical Industries Ltd. n/a 288.000 7.20 n/a 0.85 n/a 1.40
Hyperion Therapeutics, Inc. 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
  Bayer AG (ADR) n/a 42,099.954 5.82 10.59 0.92 1.04 n/a
Teva Pharmaceutical Industries Ltd (ADR) n/a 33,970.080 17.95 14.84 3.14 3.07 7.59
Alcon, Inc. n/a 25,696.909 12.85 14.04 4.10 4.07 6.98
Archer Daniels Midland Company n/a 18,185.796 7.54 8.16 0.23 0.24 1.40
Koninklijke DSM N.V. (ADR) n/a 3,957.680 4.32 3.99 0.29 n/a 0.65
DURECT Corporation n/a 281.901 n/a -10.00 10.86 8.06 8.52
Enzon Pharmaceuticals, Inc. n/a 260.282 n/a -32.33 1.32 1.51 n/a
Cambrex Corporation n/a 131.867 14.42 11.65 0.52 0.60 1.98
Accentia Biopharmaceuticals, Inc n/a 6.040 n/a n/a 0.39 n/a n/a
IBSA Institut Biochimique SA n/a n/a n/a n/a n/a n/a n/a
Tris Pharma, Inc. n/a n/a n/a n/a n/a n/a n/a
Target
  Sanofi-Aventis SA (ADR) n/a 85,433.983 13.51 8.76 2.35 2.24 n/a
Abbott Laboratories n/a 81,473.569 17.92 15.86 2.83 2.76 27.79
Cardinal Health, Inc. n/a 11,939.131 9.57 8.71 0.13 0.12 7.22
McKesson Corporation n/a 10,219.854 9.55 9.22 0.10 0.09 3.91
BioMarin Pharmaceutical Inc. n/a 1,720.007 193.42 56.10 7.11 5.57 8.17
Impax Laboratories Inc. n/a 519.929 445.08 n/a 4.62 n/a 8.86
Taro Pharmaceutical Industries Ltd. n/a 288.000 7.20 n/a 0.85 n/a 1.40
QMed, Inc. n/a 0.017 n/a n/a 0.00 n/a 0.01
Hyperion Therapeutics, Inc. n/a n/a n/a n/a n/a n/a n/a
Revance Therapeutics, Inc. n/a n/a n/a n/a n/a n/a n/a
AAIPharma Inc. n/a n/a n/a n/a n/a n/a n/a
Contract Pharmaceuticals Limited n/a n/a n/a n/a n/a n/a n/a
Ipsen S.A. n/a n/a n/a n/a n/a n/a n/a
Dow Pharmaceutical Sciences, 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 650.3 515.9 1,166.2
Other Revenue 0.0 0.0 0.0
Total Revenue 650.3 515.9 1,166.2
Cost of Revenue 237.1 41.9 279.0
SG&A Expense 345.4 279.4 624.8
Depreciation & Amortization 0.0 27.3 27.3
Research & Development 161.8 66.3 228.0
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 2.6 2.6
Unusual Expense (Income) -0.2 30.5 30.3
Total Expenses 744.0 448.0 1,192.0
Operating Income -93.7 67.9 -25.8
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 6.7 22.4 29.1
Other, Net -0.6 -2.9 -3.5
Income Before Taxes -87.6 87.4 -0.2
Income Taxes 5.7 45.3 51.0
Income After Taxes -93.3 42.1 -51.2
Net Income - Excl. Xord. Items -93.3 42.1 -51.2
Discontinued Operations 207.5 0.0 207.5
Net Income - Incl. Xord. Items 114.1 42.1 156.2
Income Avail. to Common 114.1 42.1 156.2
Share Items
Basic Avg. Shares Outstanding 41.1 56.7 97.8
Basic EPS - Excl. Xord. Items n/a 0.74 -0.52
Basic EPS - Incl. Xord. Items 2.78 0.74 1.60
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 42.2 56.7 98.9
F.D. EPS - Excl. Xord. Items n/a 0.74 -0.52
F.D. EPS - Incl. Xord. Items 2.71 0.74 1.58
Dividends Per Common Share 0.00 0.15 0.15
Balance Sheet
Assets
Cash and Equivalents 571.0 59.0 630.0
ST Investments 0.0 248.1 248.1
Accounts Receivable 98.6 48.0 146.6
Inventory 122.3 25.4 147.8
Prepayments and Advances 30.8 0.0 30.8
Other Current Assets 0.0 66.0 66.0
Current Assets 822.8 446.6 1,269.4
Accum D&A 0.0 0.0 0.0
PPE, Net 140.6 26.2 166.9
Goodwill & Intangibles 334.6 323.8 658.4
Other Assets 0.0 0.0 0.0
Other LT Assets 55.6 174.5 230.1
Total Assets 1,353.7 971.1 2,324.8
Liabilities
Accounts Payable 62.5 48.2 110.7
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 115.7 0.0 115.7
ST Debt 5.1 0.0 5.1
Curr Port of LTD & Cap Lease Oblg 0.0 0.2 0.2
Other (Current) Liabilities 0.0 131.0 131.0
Current Liab. 183.3 179.4 362.7
LT Debt 300.0 169.1 469.1
Total LT Debt 300.0 169.1 469.1
Deferred Taxes 55.4 0.0 55.4
Other LT Liab. 30.4 15.7 46.1
Total Liabilities 569.1 364.2 933.4
Shareholders Equity
Common Stock 11.3 1.0 12.3
Additional Paid in Capital 1,150.7 658.6 1,809.4
Retained Earnings 1.6 293.2 294.8
Treasure Stock -377.0 -343.4 -720.3
Other Equity -2.2 -2.5 -4.7
Total Equity 784.6 606.9 1,391.4
Total Liab. & Equity 1,353.7 971.1 2,324.8
Shares Outstanding 53.7 56.7 110.4
Cash Flow
Operating Cash Flow
CF Net Income 114.2 42.1 156.3
CF Depreciation 42.7 27.3 70.0
CF Deferred Taxes 12.9 -27.3 -14.4
Other Non-Cash Items -221.1 44.3 -176.8
Change in Working Capital -4.0 -14.3 -18.3
Total Cash From Operating Activities -55.3 72.1 16.8
Investing Cash Flow (not calculated)
Capital Expenditures -37.8 -13.3 -51.0
Other Investing Cash Flows 384.5 200.5 585.0
Total Cash From Investing Activities 346.7 187.2 533.9
Financing Cash Flow (not calculated)
Dividends Paid 0.0 -8.0 -8.0
Purchase Or Sale of Stock -48.9 7.5 -41.4
Purchase and Retirement of Debt 3.0 -283.7 -280.8
Other Financing Cash Flow 0.0 0.3 0.3
Total Cash From Financing Activities -53.8 -283.9 -337.7
Exchange Rate Effects 0.7 0.0 0.7
Net Change in Cash 238.3 -24.6 213.7
Cash Taxes Paid 5.4 82.8 88.2
Cash Interest Paid 6.6 0.0 6.6