Summary

Other Scenarios:

Buyer: ImClone Systems Incorporated (IMCL) Last Price: 44.71 Market Cap.: 3.86B
Target: Pharmion Corporation (PHRM) Last Price: 72.32 Market Cap.: 2.71B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 918
Biopharmaceuticals 375
Cardiovascular System   21
Hematology   4
Oncology 83
Surgery   3

- 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: 12)
  • Erbitux (Cetuximab)
  • IMC-3G3 (Platelet-Derived Growth Factor Receptor Alpha Monoclonal Antibody Inhibitor (PDGFR-Alpha))
  • IMC-18F1 (VEGFR-1 Monoclonal Antibody)
  • IMC-A12 (VEGFR-2/IGF-1R Modulator)
Target (Total: 5)
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Vidaza (Azacitidine)
  • Oral Azacitidine
  • Amrubicin (Anthracycline)
Buyer

n/a
Target
  • Innohep (Tinzaparin Sodium)
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Oral Azacitidine
  • Vidaza (Azacitidine)

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 4)
  • Genentech, Inc. (DNA)
  • Medarex, Inc. (MEDX)
  • Dyax Corp. (DYAX)
  • Lonza Group Ltd.
Target (Total: 6)
  • GPC Biotech AG (ADR) (GPCB)
  • Celgene Corporation (CELG)
  • salesforce.com, inc. (CRM)
  • MethylGene Inc. (MYG:CA)
Buyer (Total: 3)
  • Bristol Myers Squibb Co. (BMY)
  • Merck KGaA
  • Repligen Corporation (RGEN)
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 1,128 513
Revenue Per Employee 538,190.8 558,770.6
Total Revenue 151.4 71.5
Total Expenses 174.9 102.6
Other Revenue 0.0 0.0
Cost of Revenue 88.9 19.7
SG&A Expense 26.0 50.0
Research & Development 0.0 30.4
Other Operating Expense 0.0 0.0
Operating Income -23.5 -31.2
Unusual Income 60.0 0.0
LT Debt to Capital 43.36 0
Fwd P/E 37.50 -395.28
Fwd P/Rev 5.82 7.21
Book Value 783.8 358.9
Curr Portion of LTD/Cap Lease 0.0 0.0

Individual Company Summary

Focused

Buyer

Sector Pure-Play (): Healthcare > Biopharmaceuticals > Oncology

Target

Focused (): Healthcare > Biopharmaceuticals > Oncology

Business Description

Buyer

ImClone Systems Incorporated (ImClone) is a biopharmaceutical company that develops a portfolio of targeted biologic treatments designed to address the medical needs of patients with cancer. The Company focuses on two systems for treating cancer: growth factor blockers and angiogenesis inhibitors. Its commercially available product, ERBITUX (cetuximab), is an antibody approved by the United States Food and Drug Administration (FDA). On March 1, 2006, the FDA approved ERBITUX for use in combination with radiation therapy for the treatment of locally or regionally advanced squamous cell carcinoma of the head and neck (SCCHN) and as a single agent in recurrent or metastatic SCCHN. In addition to developing and commercializing ERBITUX, the Company has also advanced a number of investigational agents to various stages of clinical development, including those targeting angiogenesis and growth signaling mechanisms, which can be used to treat various kinds of cancer and other diseases.

Target

Pharmion Corporation is a global pharmaceutical company that acquires, develops and commercializes products for the treatment of hematology and oncology patients. The Company 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 (Thalidomide Pharmion), 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. In January 2008, Celgene Corporation has cleared its pending acquisition of Pharmion.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 40.98 72.66
Operating Margin % 8.71 -25.91
Quick Ratio 5.1 3.64
Current Ratio 5.84 4
Coverage Ratio 0.78 -0.15
Total Assets 1,769.3 443.3
Return on Equity % 5.08 -17.79
Return on Assets % 2.25 -14.4
Cash+ ST Inv. Per Share 10.51 6.67
Total Debt 600.0 0.0
Total Debt to Equity % 76.55 0
Total Debt to Tangible Equity % 76.55 0
Debt to Asset % 33.91 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.
  
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
Surgery
The Surgery Subsector includes therapeutics that treat complications associated with surgical procedures.
  

- 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  
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
  
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)
  
Oncology
Digestive System  
Colon Cancer/Colorectal Cancer  
Metastatic  
Monoclonal Antibodies
Therapeutics that treat colorectal cancer by binding to specific structures on the surface of the tumor and eliciting a reaction, which results in tumor degeneration.

Buyer Products:

  • Erbitux (Cetuximab)
  
Pancreatic Cancer  
Metastatic  
Monoclonal Antibodies
Therapeutics that treat pancreatic cancer by binding to specific structures on the surface of the tumor and eliciting a reaction, which results in tumor degeneration.

Buyer Products:

  • Erbitux (Cetuximab)
  
Head/Neck Cancer  
Localized  
Monoclonal Antibodies
Therapeutics that bind to specific receptors on the surface of head and neck cancer cells that inhibit the cancer cells' growth and induce their death.

Buyer Products:

  • Erbitux (Cetuximab)
  
Metastatic  
Monoclonal Antibodies
Therapeutics that treat head/neck cancer by binding to specific structures on the surface of the tumor and eliciting a reaction, which results in tumor degeneration.

Buyer Products:

  • Erbitux (Cetuximab)
  
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.

Buyer Products:

  • Erbitux (Cetuximab)
  • IMC-3G3 (Platelet-Derived Growth Factor Receptor Alpha Monoclonal Antibody Inhibitor (PDGFR-Alpha))
  • IMC-18F1 (VEGFR-1 Monoclonal Antibody)
  • IMC-A12 (VEGFR-2/IGF-1R Modulator)
  • IMC-11F8 (EGFR Inhibitor Monoclonal Antibody)
  • IMC-1121B (IMC/KDR Antibodies)

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:

  • Macrophage-Stimulating Protein Receptor (RON) Antibody
  • VE (Vascular Specific) Cadherin Inhibitors
  • Fibroblast Growth Factor Receptor (FGFR) Antibodies
  • VEGFR-3 Inhibitor
  • 20D7 (gp75 Antibody)
  • IMC-EB10 (FLT-3 Receptor Antibody)
  
Respiratory System/Thoracic
Lung Cancer
Non Small Cell Lung Cancer (NSCLC)  
Monoclonal Antibodies
Therapeutics that treat lung cancer by binding to specific structures on the surface of the tumor and eliciting a reaction, which results in tumor degeneration.

Buyer Products:

  • Erbitux (Cetuximab)
  
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)
  
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)
  

- 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
  Pfizer Inc. n/a 144,347.120 17.73 9.11 2.98 3.03 6.24
GlaxoSmithKline plc (ADR) n/a 115,986.006 11.18 10.85 2.57 2.53 15.20
Genentech, Inc. n/a 83,607.511 30.19 25.16 7.13 6.43 9.13
Vion Pharmaceuticals, Inc. n/a 25.897 0.00 -0.71 1,194.74 n/a 3.14
Buyer
  Roche Holding Ltd. (ADR) n/a 162,161.754 18.24 19.03 3.86 3.93 5.53
Pfizer Inc. n/a 144,347.120 17.73 9.11 2.98 3.03 6.24
GlaxoSmithKline plc (ADR) n/a 115,986.006 11.18 10.85 2.57 2.53 15.20
Novartis AG (ADR) n/a 108,444.656 9.08 13.48 2.78 2.71 3.88
Genentech, Inc. n/a 83,607.511 30.19 25.16 7.13 6.43 9.13
Wyeth n/a 55,284.879 11.98 12.11 2.47 2.48 4.04
AstraZeneca plc (ADR) n/a 54,545.064 9.47 8.41 1.91 1.77 n/a
Amgen, Inc. n/a 48,051.405 15.18 10.82 3.25 3.28 14.57
OSI Pharmaceuticals, Inc. n/a 2,100.321 31.67 17.19 6.16 5.38 22.21
Onyx Pharmaceuticals, Inc. n/a 1,499.661 0.00 104.04 n/a 11.35 3.47
Target
  Pfizer Inc. n/a 144,347.120 17.73 9.11 2.98 3.03 6.24
GlaxoSmithKline plc (ADR) n/a 115,986.006 11.18 10.85 2.57 2.53 15.20
sanofi-aventis (ADR) n/a 98,531.811 16.69 9.14 2.25 2.40 n/a
Genentech, Inc. n/a 83,607.511 30.19 25.16 7.13 6.43 9.13
Eli Lilly & Co. n/a 56,508.154 19.14 12.64 3.03 2.79 5.04
Celgene Corporation n/a 22,917.366 101.21 38.96 16.30 11.48 8.45
Eisai Co., Ltd (ADR) n/a 9,661.528 13.56 13.89 1.46 1.40 2.29
Millennium Pharmaceuticals, Inc. n/a 4,249.041 284.76 58.61 8.05 7.65 5.90
SuperGen, Inc. n/a 135.648 10.37 -12.63 5.91 3.71 1.48
Poniard Pharmaceuticals, Inc. n/a 132.393 0.00 -3.07 n/a 12.14 1.53
Vion Pharmaceuticals, Inc. n/a 25.897 0.00 -0.71 1,194.74 n/a 3.14

- 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
  Genentech, Inc. n/a 83,607.511 30.19 25.16 7.13 6.43 9.13
Medarex, Inc. n/a 1,097.420 0.00 -5.92 19.50 21.35 2.46
Dyax Corp. n/a 276.699 0.00 -6.03 10.60 5.83 9.69
Lonza Group Ltd. n/a n/a n/a n/a n/a n/a n/a
Target
  GPC Biotech AG (ADR) 66.00% 123.561 0.00 -1.04 3.95 3.84 1.63
Celgene Corporation n/a 22,917.366 101.21 38.96 16.30 11.48 8.45
salesforce.com, inc. n/a 6,759.538 368.29 174.97 9.03 6.62 16.14
MethylGene Inc. n/a 87.304 0.00 n/a 6.00 n/a 1.75
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
  Bristol Myers Squibb Co. 91.00% 43,309.011 20.00 12.88 2.24 2.02 10.23
Merck KGaA 8.60% n/a n/a n/a n/a n/a n/a
Repligen Corporation n/a 153.419 3.82 4.13 7.79 n/a 2.29
Target
  US Oncology, Inc. 19.00% n/a n/a n/a n/a n/a n/a
Cardinal Health, Inc. 11.00% 19,851.610 12.83 14.65 0.22 0.21 15.33
McKesson Corporation 9.00% 16,575.105 17.63 17.42 0.17 0.16 5.60
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
Overlap
  Cardinal Health, Inc. n/a 19,851.610 12.83 14.65 0.22 0.21 15.33
Buyer
  Johnson & Johnson n/a 174,233.403 16.47 14.11 2.85 2.79 11.97
sanofi-aventis (ADR) n/a 98,531.811 16.69 9.14 2.25 2.40 n/a
Genentech, Inc. n/a 83,607.511 30.19 25.16 7.13 6.43 9.13
Bristol Myers Squibb Co. n/a 43,309.011 20.00 12.88 2.24 2.02 10.23
Cardinal Health, Inc. n/a 19,851.610 12.83 14.65 0.22 0.21 15.33
Medarex, Inc. n/a 1,097.420 0.00 -5.92 19.50 21.35 2.46
Seattle Genetics, Inc. n/a 634.923 0.00 -10.06 28.32 20.97 11.76
Genomic Health, Inc. n/a 558.713 0.00 -36.94 8.73 5.28 7.85
Dyax Corp. n/a 276.699 0.00 -6.03 10.60 5.83 9.69
Repligen Corporation n/a 153.419 3.82 4.13 7.79 n/a 2.29
Government - United States 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
Target
  Pfizer Inc. n/a 144,347.120 17.73 9.11 2.98 3.03 6.24
Celgene Corporation n/a 22,917.366 101.21 38.96 16.30 11.48 8.45
Cardinal Health, Inc. n/a 19,851.610 12.83 14.65 0.22 0.21 15.33
McKesson Corporation n/a 16,575.105 17.63 17.42 0.17 0.16 5.60
GPC Biotech AG (ADR) n/a 123.561 0.00 -1.04 3.95 3.84 1.63
MethylGene Inc. n/a 87.304 0.00 n/a 6.00 n/a 1.75
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
Ash Stevens, Inc. n/a n/a n/a n/a n/a n/a n/a
Dainippon Sumitomo Pharma 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
Nippon Shinyaku Co., Ltd. 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 590.8 267.3 858.1
Other Revenue 0.0 0.0 0.0
Total Revenue 590.8 267.3 858.1
Cost of Revenue 348.7 73.1 421.8
SG&A Expense 80.7 143.2 223.9
Depreciation & Amortization 0.0 9.9 9.9
Research & Development 0.0 102.4 102.4
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) 110.0 8.0 118.0
Total Expenses 539.4 336.5 875.9
Operating Income 51.5 -69.2 -17.8
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 40.1 10.2 50.2
Other, Net 3.8 0.0 3.8
Income Before Taxes 95.3 -59.1 36.2
Income Taxes 55.5 4.8 60.3
Income After Taxes 39.8 -63.9 -24.1
Net Income - Excl. Xord. Items 39.8 -63.9 -24.1
Net Income - Incl. Xord. Items 39.8 -63.9 -24.1
Income Avail. to Common 39.8 -63.9 -24.1
Share Items
Basic Avg. Shares Outstanding 86.3 37.3 123.6
Basic EPS - Excl. Xord. Items 0.46 n/a -0.19
Basic EPS - Incl. Xord. Items 0.46 n/a -0.19
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 86.3 37.3 123.6
F.D. EPS - Excl. Xord. Items 0.46 n/a -0.19
F.D. EPS - Incl. Xord. Items 0.46 n/a -0.19
Balance Sheet
Assets
Cash and Equivalents 602.2 178.9 781.1
ST Investments 304.5 69.7 374.2
Accounts Receivable 95.8 45.0 140.8
Inventory 116.2 12.8 129.0
Prepayments and Advances 3.6 2.8 6.5
Other Current Assets 26.3 13.6 39.9
Current Assets 1,148.7 322.8 1,471.5
Accum D&A 0.0 0.0 0.0
PPE, Net 397.7 11.4 409.1
Goodwill & Intangibles 0.0 103.1 103.1
Long Term Investments 109.1 0.0 109.1
Note Receivable 7.4 0.0 7.4
Other Assets 0.0 0.0 0.0
Other LT Assets 106.5 6.0 112.5
Total Assets 1,769.3 443.3 2,212.6
Liabilities
Accounts Payable 30.5 14.3 44.8
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 54.4 66.3 120.7
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 111.8 0.0 111.8
Current Liab. 196.7 80.6 277.3
LT Debt 600.0 0.0 600.0
Total LT Debt 600.0 0.0 600.0
Deferred Taxes 0.0 2.7 2.7
Other LT Liab. 188.8 1.1 189.9
Total Liabilities 985.5 84.4 1,069.8
Shareholders Equity
Common Stock 0.1 0.0 0.1
Additional Paid in Capital 893.6 631.7 1,525.4
Retained Earnings -30.5 -290.7 -321.2
Treasure Stock -28.8 0.0 -28.8
Other Equity -50.7 17.9 -32.8
Total Equity 783.8 358.9 1,142.7
Total Liab. & Equity 1,769.3 443.3 2,212.6
Shares Outstanding 86.3 37.4 123.7
Cash Flow
Operating Cash Flow
CF Net Income 39.8 -63.9 -24.1
CF Depreciation 32.1 12.6 44.7
CF Deferred Taxes 57.1 0.0 57.1
Other Non-Cash Items 15.3 3.2 18.5
Change in Working Capital -130.8 24.5 -106.3
Total Cash From Operating Activities 13.5 -23.5 -10.0
Investing Cash Flow (not calculated)
Capital Expenditures -25.7 -6.7 -32.4
Other Investing Cash Flows 564.4 8.6 573.0
Total Cash From Investing Activities 538.7 1.8 540.6
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 29.4 138.0 167.4
Purchase and Retirement of Debt 0.0 -0.9 -0.9
Other Financing Cash Flow 0.0 0.4 0.4
Total Cash From Financing Activities 29.4 137.5 166.9
Exchange Rate Effects 0.0 3.2 3.2
Net Change in Cash 581.7 119.0 700.6
Cash Taxes Paid 3.2 3.0 6.1
Cash Interest Paid 8.3 0.2 8.5