Summary

Other Scenarios:

Buyer: Myriad Genetics, Inc. (MYGN) Last Price: 45.20 Market Cap.: 1.99B
Target: Pharmion Corporation (PHRM) Last Price: 49.28 Market Cap.: 1.84B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 935
Biopharmaceuticals 378
Healthcare Services   156
Medical Devices   255

- 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)
  • MPC-0920 (Direct Thrombin Inhibitor)
  • MPI-49839 (Viral Maturation Inhibitor)
  • Flurizan (R-Flurbiprofen)
  • Azixa/Formely MPC-6827 (Tubulin Inhibitor)
Target (Total: 5)
  • Innohep (Tinzaparin Sodium)
  • Oral Azacitidine
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Vidaza (Azacitidine)
Buyer
  • Myriad Genetic Laboratories
  • BRACAnalysis/BRACAnalysis Rearrangement Test
  • COLARIS AP
  • COLARIS
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 4)
  • EpiCept Corporation (EPCT)
  • Genetic Technologies Limited (ADR) (GENE)
  • University of Pennsylvania
  • University of Utah
Target (Total: 6)
  • GPC Biotech AG (ADR) (GPCB)
  • Celgene Corporation (CELG)
  • salesforce.com, inc. (CRM)
  • MethylGene Inc. (MYG:CA)
Buyer (Total: 0)

n/a
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 848 417
Revenue Per Employee 227,758.1 642,856.5
Total Revenue 48.3 67.3
Total Expenses 59.8 90.4
Other Revenue 0.0 0.0
Cost of Revenue 7.3 18.2
SG&A Expense 26.5 32.5
Research & Development 26.0 29.1
Other Operating Expense 0.0 0.0
Operating Income -11.6 -23.0
Unusual Income 0.0 8.0
LT Debt to Capital 0 0
Fwd P/E -76.31 -39.45
Fwd P/Rev 9.33 6.54
Book Value 341.7 380.0
Curr Portion of LTD/Cap Lease 0.0 0.0

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Biopharmaceuticals

Target

Focused (): Healthcare > Biopharmaceuticals > Oncology

Business Description

Buyer

Myriad Genetics, Inc. is a biotechnology company focused on the development and marketing of therapeutic and molecular diagnostic products. As of June 30, 2007, the Company had four drug candidates in seven clinical trials, and a number of other drug candidates that are in late-stage preclinical development. Its major drug development programs include Flurizan for the treatment of Alzheimer?s disease, Azixa for the treatment of primary and metastatic brain tumors, MPC-2130 for the treatment of hematologic cancers, MPC-0920 for the treatment of thrombosis, and Vivecon for the treatment of acquired immune deficiency syndrome (AIDS). The Company?s revenues, for the fiscal year ended June 30, 2007, consisted primarily of sales of molecular diagnostic products (92%) and research payments (8%). Its commercial molecular diagnostic products include BRACAnalysis, COLARIS, COLARIS AP and MELARIS.

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 % 82.52 72.65
Operating Margin % -25.78 -40.39
Quick Ratio 7.1 4.49
Current Ratio 7.37 4.89
Coverage Ratio -0.3 -0.08
Total Assets 373.4 451.5
Return on Equity % -8.94 -26.47
Return on Assets % -8.18 -22.28
Cash+ ST Inv. Per Share 4.33 6.96
Total Debt 0.0 0.0
Total Debt to Equity % 0 0
Total Debt to Tangible Equity % 0 0
Debt to Asset % 0.00 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.
  
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.
Surgery
The Surgery Subsector includes therapeutics that treat complications associated with surgical procedures.
  
Healthcare Services  
Patient Care
The Patient Care Subsector is comprised of companies that provide services to patients for the diagnosis, treatment, and/or prevention of diseases and injuries.
  
Medical Devices  
Clinical Diagnostics
The Clinical Diagnostics Subsector includes medical devices that analyze human body specimens within a medical setting. These devices, including equipment, biological and chemical reagents are primarily used for the diagnosis of diseases.
  

- 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:

  • MPC-0920 (Direct Thrombin Inhibitor)
  
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:

  • Oral Azacitidine
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  
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:

  • MPI-49839 (Viral Maturation Inhibitor)
  
Infectious Diseases  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of infectious diseases in very early stages of research where no human subject is involved.

Buyer Products:

  • MPI-49839 (Viral Maturation Inhibitor)
  
Neurology  
Neurological Disorders  
Alzheimer`s Disease  
Gamma Secretase Inhibitors
Therapeutics that treat Alzheimer's Disease by selectively lowering levels of Amyloid beta 42, a toxic peptide to neural cells.

Buyer Products:

  • Flurizan (R-Flurbiprofen)
  
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:

  • Flurizan (R-Flurbiprofen)
  
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.

Buyer Products:

  • Azixa/Formely MPC-6827 (Tubulin Inhibitor)
  • MPC-2130

Target Products:

  • Amrubicin (Anthracycline)
  • Oral Azacitidine
  • MGCD0103 (Histone Deacetylase (HDAC) Inhibitor)
  • Vidaza (Azacitidine)
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)
  
Healthcare Services  
Patient Care  
Ambulatory/Outpatient  
Diagnostic  
Laboratory  
Specialized
Specialized laboratory testing services involving highly specialized equipment, personnel, and procedures.

Buyer Products:

  • Myriad Genetic Laboratories
  
Medical Devices  
Clinical Diagnostics  
Chemistry  
Reagents  
Test Kits  
Genetic Analysis  
Cancers  
Breast Cancer
A test designed to determine pre-disposition to breast cancer.

Buyer Products:

  • BRACAnalysis/BRACAnalysis Rearrangement Test
  
Colorectal Cancer (Colon Cancer)
A test designed to determine pre-disposition to colorectal cancer.

Buyer Products:

  • COLARIS AP
  • COLARIS
  
Melanoma (Skin Cancer)
Test designed to determine pre-disposition to melanoma.

Buyer Products:

  • MELARIS
  
Ovarian Cancer
Test designed to determine pre-disposition to ovarian cancer.

Buyer Products:

  • BRACAnalysis/BRACAnalysis Rearrangement Test
  
Pancreatic Cancer
Test designed to determine pre-disposition to pancreatic cancer.

Buyer Products:

  • MELARIS
  
Pharmacogenetic
Test kits designed to determine individuals' reaction to specific medications based on their specific genes.

Buyer Products:

  • TheraGuide 5-FU
  

- 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
  ChoicePoint Inc. n/a 2,746.264 31.06 22.41 2.57 2.61 n/a
Clinical Data, Inc. n/a 471.856 0.00 n/a 7.85 n/a 27.98
Verenium Corporation n/a 262.125 0.00 -4.45 5.45 5.38 33.76
Orchid Cellmark, Inc. n/a 137.337 0.00 -64.29 2.28 2.16 3.57
EPIX Pharmaceuticals, Inc. n/a 106.267 0.00 -1.68 9.94 7.66 n/a
Healthcare Technologies, Ltd. n/a 6.234 0.00 n/a 0.44 n/a n/a
Target
  Pfizer Inc. n/a 159,749.145 10.75 10.83 3.32 3.34 6.55
GlaxoSmithKline plc (ADR) n/a 135,513.915 12.29 12.44 2.89 2.96 12.68
sanofi-aventis (ADR) n/a 119,630.234 20.72 11.92 2.80 3.03 n/a
Genentech, Inc. n/a 78,971.298 28.91 27.60 6.89 6.70 8.92
Eli Lilly & Co. n/a 58,768.757 26.34 14.75 3.32 3.24 5.60
Celgene Corporation n/a 25,042.328 143.89 68.64 19.78 17.97 10.69
Millennium Pharmaceuticals, Inc. n/a 4,439.446 0.00 196.00 9.13 9.23 6.92
MGi Pharma, Inc. n/a 2,366.794 0.00 78.97 6.41 5.89 124.53
SuperGen, Inc. n/a 230.487 142.52 33.42 12.78 10.15 2.63
Poniard Pharmaceuticals, Inc. n/a 151.449 0.00 -4.04 n/a 6.55 1.75
Vion Pharmaceuticals, Inc. n/a 49.602 0.00 -1.21 2,437.28 2,375.05 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
  EpiCept Corporation n/a 59.099 0.00 -1.92 35.48 n/a n/a
Genetic Technologies Limited (ADR) n/a 53.151 0.00 n/a 7.24 n/a 5.69
University of Pennsylvania n/a n/a n/a n/a n/a n/a n/a
University of Utah n/a n/a n/a n/a n/a n/a n/a
Target
  GPC Biotech AG (ADR) 66.00% 158.788 0.00 n/a 5.72 n/a 1.60
Celgene Corporation n/a 25,042.328 143.89 68.64 19.78 17.97 10.69
salesforce.com, inc. n/a 6,698.480 582.67 461.73 9.91 8.03 18.16
MethylGene Inc. n/a 110.781 0.00 n/a 7.40 n/a 2.16
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
Target
  US Oncology, Inc. 19.00% n/a n/a n/a n/a n/a n/a
Cardinal Health, Inc. 11.00% 21,165.904 10.79 14.74 0.24 0.23 17.00
McKesson Corporation 9.00% 19,339.753 19.69 19.40 0.20 0.19 6.15
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
  AstraZeneca plc (ADR) n/a 66,205.307 11.49 11.00 2.32 2.26 n/a
EpiCept Corporation n/a 59.099 0.00 -1.92 35.48 n/a n/a
Genetic Technologies Limited (ADR) n/a 53.151 0.00 n/a 7.24 n/a 5.69
University of Pennsylvania n/a n/a n/a n/a n/a n/a n/a
University of Utah n/a n/a n/a n/a n/a n/a n/a
Target
  Pfizer Inc. n/a 159,749.145 10.75 10.83 3.32 3.34 6.55
Celgene Corporation n/a 25,042.328 143.89 68.64 19.78 17.97 10.69
Cardinal Health, Inc. n/a 21,165.904 10.79 14.74 0.24 0.23 17.00
McKesson Corporation n/a 19,339.753 19.69 19.40 0.20 0.19 6.15
MGi Pharma, Inc. n/a 2,366.794 0.00 78.97 6.41 5.89 124.53
GPC Biotech AG (ADR) n/a 158.788 0.00 n/a 5.72 n/a 1.60
MethylGene Inc. n/a 110.781 0.00 n/a 7.40 n/a 2.16
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 171.8 255.9 427.7
Other Revenue 0.0 0.0 0.0
Total Revenue 171.8 255.9 427.7
Cost of Revenue 30.0 70.0 100.0
SG&A Expense 85.7 125.2 210.9
Depreciation & Amortization 0.0 9.9 9.9
Research & Development 100.4 91.9 192.3
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 216.2 359.2 575.4
Operating Income -44.3 -103.3 -147.7
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 13.4 8.1 21.5
Other, Net 0.4 0.0 0.4
Income Before Taxes -30.5 -95.3 -125.8
Income Taxes 0.0 5.3 5.3
Income After Taxes -30.5 -100.6 -131.1
Net Income - Excl. Xord. Items -30.5 -100.6 -131.1
Net Income - Incl. Xord. Items -30.5 -100.6 -131.1
Income Avail. to Common -30.5 -100.6 -131.1
Share Items
Basic Avg. Shares Outstanding 43.6 37.0 80.6
Basic EPS - Excl. Xord. Items n/a n/a -1.63
Basic EPS - Incl. Xord. Items n/a n/a -1.63
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 43.6 37.0 80.6
F.D. EPS - Excl. Xord. Items n/a n/a -1.63
F.D. EPS - Incl. Xord. Items n/a n/a -1.63
Balance Sheet
Assets
Cash and Equivalents 107.2 135.0 242.3
ST Investments 81.3 122.6 203.9
Accounts Receivable 36.0 45.4 81.5
Inventory 0.0 13.0 13.0
Prepayments and Advances 8.3 0.0 8.3
Other Current Assets 0.0 14.0 14.0
Current Assets 232.9 330.0 562.9
PPE 66.9 0.0 66.9
Accum D&A -40.9 0.0 -40.9
PPE, Net 26.0 11.0 36.9
Goodwill & Intangibles 0.0 104.7 104.7
Long Term Investments 110.7 0.0 110.7
Other Assets 0.0 0.0 0.0
Other LT Assets 3.8 5.8 9.6
Total Assets 373.4 451.5 824.9
Liabilities
Accounts Payable 14.0 10.1 24.1
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 17.6 57.5 75.1
ST Debt 0.0 0.0 0.0
Other (Current) Liabilities 0.0 0.0 0.0
Current Liab. 31.6 67.5 99.2
LT Debt 0.0 0.0 0.0
Total LT Debt 0.0 0.0 0.0
Deferred Taxes 0.0 3.0 3.0
Other LT Liab. 0.0 1.0 1.0
Total Liabilities 31.6 71.5 103.1
Shareholders Equity
Common Stock 0.4 0.0 0.5
Additional Paid in Capital 601.6 627.5 1,229.1
Retained Earnings -260.4 -263.2 -523.6
Other Equity 0.1 15.7 15.8
Total Equity 341.7 380.0 721.8
Total Liab. & Equity 373.4 451.5 824.9
Shares Outstanding 43.9 37.2 81.1
Cash Flow
Operating Cash Flow
CF Net Income -30.5 -100.6 -131.1
CF Depreciation 7.9 12.4 20.2
CF Deferred Taxes 0.0 0.0 0.0
Other Non-Cash Items 15.5 3.4 18.9
Change in Working Capital -17.1 20.2 3.1
Total Cash From Operating Activities -24.2 -64.7 -88.9
Investing Cash Flow (not calculated)
Capital Expenditures -12.2 -6.7 -18.9
Other Investing Cash Flows -68.1 -32.1 -100.2
Total Cash From Investing Activities -80.3 -38.8 -119.1
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 123.1 6.1 129.3
Purchase and Retirement of Debt 0.0 -0.9 -0.9
Other Financing Cash Flow 0.0 130.8 130.8
Total Cash From Financing Activities 123.1 135.9 259.1
Exchange Rate Effects 0.0 3.8 3.8
Net Change in Cash 18.6 36.2 54.8
Cash Taxes Paid 0.0 11.4 11.4
Cash Interest Paid 0.0 0.4 0.4