Summary

Other Scenarios:

Buyer: Neurocrine Biosciences, Inc. (NBIX) Last Price: 52.74 Market Cap.: 1.99B
Target: Adams Respiratory Therapeutics, Inc. (ARXT) Last Price: 44.31 Market Cap.: 1.52B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Healthcare 861
Biopharmaceuticals 315

- 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: 21)
  • Urocortin 2
  • CRF R1 Antagonist
  • NBI-6024 (Altered Peptide Ligand)
  • NBI-5788 (Altered Peptide Ligand)
Target (Total: 7)
  • Erdosteine
  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Mucinex D (Guaifenesin/Pseudoephedrine HCl Extended Release)
Buyer

n/a
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 2)
  • Pfizer Inc. (PFE)
  • Open Text Corporation (USA) (OTEX)
Target (Total: 1)
  • Cardinal Health, Inc. (CAH)
Buyer (Total: 5)
  • Pfizer Inc. (PFE)
  • GlaxoSmithKline plc (ADR) (GSK)
  • Wyeth (WYE)
  • Eli Lilly & Co. (LLY)
Target (Total: 12)
  • Wal-Mart Stores, Inc. (WMT)
  • Walgreen Company (WAG)
  • CVS Corporation (CVS)
  • McKesson Corporation (MCK)

Key Financial Summary:

Metric Buyer Target
Number of Employees 564 176
Revenue Per Employee 139,496.5 1,409,350.0
Total Revenue 19.5 63.2
Total Expenses 47.1 45.8
Other Revenue 8.2 0.0
Cost of Revenue 0.0 13.9
SG&A Expense 19.3 29.7
Research & Development 27.7 4.1
Other Operating Expense 0.0 0.0
Operating Income -27.6 17.4
Unusual Income 0.0 0.0
Gross Margin % 100 77.99
Metric Buyer Target
Operating Margin % -141.68 27.51
Total Assets 477.4 225.1
Return on Equity % -27.6 22.58
Cash+ ST Inv. Per Share 7.08 4.21
Total Debt 57.9 0.0
Curr Portion of LTD/Cap Lease 5.5 0.0
Total Debt to Equity 15.1 0
LT Debt to Capital 12.01 0
Fwd P/E 76.40 35.54
Fwd P/Rev 9.57 6.52
Book Value 383.8 188.9

Individual Company Summary

Focused

Buyer

Focused (): *Healthcare > Biopharmaceuticals > Neurology

Target

Focused (): *Healthcare > Biopharmaceuticals > Respiratory System > Upper Respiratory Tract Disorders > Coughs/Colds

Business Description

Buyer

Neurocrine Biosciences, Inc. discovers, develops and intends to commercialize drugs for the treatment of neurological and endocrine-related diseases and disorders. The Company's product candidates address pharmaceutical markets in the world, including insomnia, anxiety, depression, various female and male health disorders, multiple sclerosis, diabetes and other neurological and endocrine related diseases and disorders. The Company has nine programs in various stages of research and development, including seven programs in clinical development. While the Company independently develops many of its product candidates, it has entered into collaborations for three of its programs. The Company's lead clinical development program, indiplon, is a drug for the treatment of insomnia. It has submitted two New Drug Applications (NDAs) to the United States Food and Drug Administration (FDA) with respect to indiplon.

Target

Adams Respiratory Therapeutics, Inc. is a specialty pharmaceutical company focused on the late-stage development, commercialization and marketing of over the counter (OTC) and prescription pharmaceuticals for the treatment of respiratory disorders. During the fiscal year ended June 30, 2005, the Company marketed two OTC products, Mucinex SE and Mucinex DM, under its Mucinex brand. Mucinex SE is a long-acting, single-ingredient guaifenesin product. Guaifenesin is an expectorant that thins bronchial secretions and makes coughs more productive. Mucinex DM combines long-acting guaifenesin with the cough suppressant, dextromethorphan. In February 2005, Adams Respiratory Therapeutics, Inc. acquired the Humibid trademark and transferred its AlleRx product line in exchange for the Humibid name.

Product Summary

Sector Buyer Target
*Healthcare
Biopharmaceuticals
Cardiovascular System
The Cardiovascular System Subsector includes therapeutics that treat disorders affecting the heart and blood vessels.
  
Digestive System
The Digestive System Subsector includes therapeutics that treat disorders affecting the digestive system.
  
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.
  
Neurology
The Neurology Subsector includes therapeutics that treat disorders of the central nervous system, including the brain, spinal cord, and nerves.
  
Obstetrics/Gynecology
The Obstetrics/Gynecology Subsector includes therapeutics that treat female genital disorders, pregnancy, and childbirth.
  
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.
  
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.
  
Urology
The Urology Subsector includes therapeutics that treat diseases of the kidney, urinary tract, bladder, and the male reproductive system.
  
Weight Management
The Weight Management Subsectors includes herapeutics that treat and manage weight disorders.
  

- 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:

  • Urocortin 2
  
Digestive System  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of digestive disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • CRF R1 Antagonist
  
Endocrinology/Metabolism  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of endocrinology disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • NBI-6024 (Altered Peptide Ligand)
  
Immunology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of immune disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • NBI-5788 (Altered Peptide Ligand)
  
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:

  • CCR7
  
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:

  • NBI-75043
  • NBI-34041 (CRF R1 Antagonist)
  • NBI-5788 (Altered Peptide Ligand)
  • CRF R1 Antagonist
  
Psychiatric Disorders  
Sleep Disorders  
Insomnia  
Gamma-Aminobutyric Acid (GABA) Receptor Agonists
Therapeutics that treat insomnia by enhancing the inhibitory action of gamma-aminobutyric acid.

Buyer Products:

  • Indiplon Immediate Release Capsule
  • Indiplon Modified Release Tablet
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of nervous system and mental disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • Adenosine 2A Receptor Antagonists
  • Sleep Program
  • Excitatory Amino Acid Transporters
  • CRF R2 Antagonist
  • MC-4 (Melanin Concentrating Hormone Antagonist)
  • Melanocortin Receptor Agonist
  
Obstetrics/Gynecology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of female reproductive disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • D2 Receptor Agonist
  • NBI-56418 (GnRH Antagonist)
  • NBI-42902 (GnRH Antagonist)
  
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:

  • NBI-42902 (GnRH Antagonist)
  • NBI-3001 (IL-4 Fusion Toxin)
  
Pain Management  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of pain in very early stages of research where no human subject is involved.

Buyer Products:

  • Fractalkine
  
Respiratory System  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of respiratory disorders in early stages of clinical research where human subject is involved.

Target Products:

  • Erdosteine
  
Upper Respiratory Tract Disorders  
Coughs/Colds  
Antitussives/Expectorants
Therapeutics that treat coughs and colds by suppressing coughs and helping ejection of the mucous.

Target Products:

  • Mucinex DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  • Maximum Strength DM (Guaifenesin/Dextromethorphan Hydrobromide Extended Release)
  
Decongestants/Expectorants
Therapeutics that treat coughs and colds by reducing mucous build up and help in ejection of mucous.

Target Products:

  • Mucinex D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  • Maximum Strength D (Guaifenesin/Pseudoephedrine HCl Extended Release)
  
Expectorants
Therapeutics that treat coughs and colds by helping in the ejection of mucous.

Target Products:

  • Mucinex SE (Guaifenesin Extended Release)
  • Humibid (Guaifenesin Extended Release)
  
Urology  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of urological disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • D2 Receptor Agonist
  • NBI-56418 (GnRH Antagonist)
  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of urological disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • MC-4 (Melanin Concentrating Hormone Antagonist)
  
Weight Management  
Research/Preclinical Stage Products
Therapeutics that are being investigated for the treatment of weight disorders in very early stages of research where no human subject is involved.

Buyer Products:

  • MC-4 (Melanin Concentrating Hormone Antagonist)
  • Melanocortin Receptor Antagonist
  • Melanocortin Receptor Agonist
  

- 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 179,521.061 15.19 12.28 3.53 3.54 10.09
Wyeth n/a 65,776.529 17.72 15.66 3.46 3.25 7.34
Buyer
  Pfizer Inc. n/a 179,521.061 15.19 12.28 3.53 3.54 10.09
GlaxoSmithKline plc (ADR) n/a 165,878.661 17.69 17.38 3.93 3.96 18.50
Roche Holding Ltd. (ADR) n/a 139,217.584 30.89 23.81 5.03 4.59 7.93
sanofi-aventis (ADR) n/a 133,880.824 47.13 13.63 3.72 3.79 n/a
Merck & Co., Inc. n/a 74,838.163 15.73 14.38 3.39 3.62 4.33
Wyeth n/a 65,776.529 17.72 15.66 3.46 3.25 7.34
Abbott Laboratories n/a 63,215.948 18.80 16.88 2.86 2.88 13.96
Eli Lilly & Co. n/a 57,003.803 27.53 16.28 3.84 3.73 4.87
Bristol Myers Squibb Co. n/a 47,761.793 14.99 20.69 2.47 2.53 10.22
Teva Pharmaceutical Industries Ltd (ADR) n/a 24,262.693 n/a 19.68 4.32 2.88 -38.67
Schering AG (ADR) n/a 20,873.552 25.05 25.69 2.96 n/a 5.77
Biogen Idec Inc n/a 15,803.911 65.79 23.81 6.46 6.14 5.09
Forest Laboratories, Inc. n/a 12,768.375 18.73 16.73 4.31 4.03 n/a
Serono S.A. (ADR) n/a 10,241.916 15.98 15.03 3.86 3.69 4.86
Elan Corporation, plc (ADR) n/a 6,801.639 n/a -18.73 13.03 10.07 -10.61
King Pharmaceuticals n/a 4,396.073 44.83 12.63 2.33 2.45 4.68
Target
  The Procter & Gamble Company n/a 180,513.653 19.43 21.16 2.79 2.66 -7.91
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
Novartis AG (ADR) n/a 134,315.876 23.67 18.30 4.01 3.68 3.98
Wyeth n/a 65,776.529 17.72 15.66 3.46 3.25 7.34
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

- 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
  Pfizer Inc. n/a 179,521.061 15.19 12.28 3.53 3.54 10.09
Open Text Corporation (USA) n/a 713.679 393.02 15.40 1.73 1.75 8.73
Target
  Cardinal Health, Inc. n/a 27,758.866 29.94 21.57 0.35 0.35 7.37

- 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
  Pfizer Inc. 90.80% 179,521.061 15.19 12.28 3.53 3.54 10.09
GlaxoSmithKline plc (ADR) 9.20% 165,878.661 17.69 17.38 3.93 3.96 18.50
Wyeth n/a 65,776.529 17.72 15.66 3.46 3.25 7.34
Eli Lilly & Co. n/a 57,003.803 27.53 16.28 3.84 3.73 4.87
Taisho Pharmaceuticals Co. Ltd. n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. 10.00% 193,949.401 17.37 16.13 0.61 0.56 4.73
Walgreen Company 10.00% 40,375.218 25.19 23.91 0.91 0.87 4.27
CVS Corporation 10.00% 23,946.619 18.99 19.40 0.63 0.59 3.89
McKesson Corporation 10.00% 14,632.871 19.31 18.30 0.17 0.16 3.73
Target Corporation n/a 45,476.217 18.98 17.12 0.86 0.79 3.20
Cardinal Health, Inc. n/a 27,758.866 29.94 21.57 0.35 0.35 7.37
Sears Holdings Corporation n/a 22,162.719 25.28 18.50 0.45 0.42 3.42
The Kroger Co. n/a 14,411.533 15.05 13.96 0.24 0.22 6.56
Safeway Inc. n/a 10,739.386 18.70 15.15 0.28 0.27 4.05
Albertson's, Inc. n/a 9,404.653 21.03 19.37 0.23 0.23 3.63
AmerisourceBergen Corp. n/a 9,231.394 27.03 21.13 0.16 0.16 4.86
Rite Aid Corporation n/a 2,390.540 1.88 456.00 0.14 0.14 3.16

- 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
  Pfizer Inc. n/a 179,521.061 15.19 12.28 3.53 3.54 10.09
GlaxoSmithKline plc (ADR) n/a 165,878.661 17.69 17.38 3.93 3.96 18.50
Wyeth n/a 65,776.529 17.72 15.66 3.46 3.25 7.34
Eli Lilly & Co. n/a 57,003.803 27.53 16.28 3.84 3.73 4.87
Biosite Incorporated n/a 819.734 15.51 20.96 2.78 2.61 2.67
DOV Pharmaceutical, Inc. n/a 165.879 n/a -2.70 19.18 10.02 -8.59
Pharmacopeia Drug Discovery, Inc. n/a 78.860 n/a -7.47 3.87 3.76 2.24
Deltagen, Inc. n/a 23.311 n/a n/a 3.48 n/a 2.40
Taisho Pharmaceuticals Co. Ltd. n/a n/a n/a n/a n/a n/a n/a
Almirall Prodesfarma, S.A. n/a n/a n/a n/a n/a n/a n/a
Oregon Health Sciences University n/a n/a n/a n/a n/a n/a n/a
Memorial Sloan-Kettering Cancer Center n/a n/a n/a n/a n/a n/a n/a
Target
  Wal-Mart Stores, Inc. n/a 193,949.401 17.37 16.13 0.61 0.56 4.73
Target Corporation n/a 45,476.217 18.98 17.12 0.86 0.79 3.20
Walgreen Company n/a 40,375.218 25.19 23.91 0.91 0.87 4.27
Cardinal Health, Inc. n/a 27,758.866 29.94 21.57 0.35 0.35 7.37
CVS Corporation n/a 23,946.619 18.99 19.40 0.63 0.59 3.89
Sears Holdings Corporation n/a 22,162.719 25.28 18.50 0.45 0.42 3.42
McKesson Corporation n/a 14,632.871 19.31 18.30 0.17 0.16 3.73
The Kroger Co. n/a 14,411.533 15.05 13.96 0.24 0.22 6.56
Safeway Inc. n/a 10,739.386 18.70 15.15 0.28 0.27 4.05
Albertson's, Inc. n/a 9,404.653 21.03 19.37 0.23 0.23 3.63
AmerisourceBergen Corp. n/a 9,231.394 27.03 21.13 0.16 0.16 4.86
Rite Aid Corporation n/a 2,390.540 1.88 456.00 0.14 0.14 3.16
UCB S.A. 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 102.3 208.5 310.7
Other Revenue 29.2 0.0 29.2
Total Revenue 131.5 208.5 340.0
Cost of Revenue 0.0 40.2 40.2
SG&A Expense 56.1 92.8 148.9
Depreciation & Amortization 0.0 0.0 0.0
Research & Development 108.8 11.9 120.6
Interest Expense 0.0 -3.0 -3.0
Other Operating Expense 0.0 0.0 0.0
Total Expenses 164.8 141.6 306.4
Operating Income -33.3 66.9 33.6
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 4.1 0.0 4.1
Other, Net 0.0 0.0 0.0
Income Before Taxes -29.3 66.9 37.6
Income Taxes 0.0 26.1 26.1
Income After Taxes -29.3 40.8 11.6
Net Income - Excl. Xord. Items -29.3 40.8 11.6
Net Income - Incl. Xord. Items -29.3 40.8 11.6
Preferred Dividends 0.0 -107.0 -107.0
Income Avail. to Common -29.3 -66.2 -95.5
Share Items
Basic Avg. Shares Outstanding 37.4 33.5 70.8
Basic EPS - Excl. Xord. Items -0.78 -12.99 0.16
Basic EPS - Incl. Xord. Items -0.78 -12.99 0.16
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 37.4 36.4 73.8
F.D. EPS - Excl. Xord. Items -0.81 -13.11 0.16
F.D. EPS - Incl. Xord. Items -0.81 -13.11 0.16
Balance Sheet
Assets
Cash and Equivalents 101.5 143.5 245.0
ST Investments 163.0 9.9 172.9
Accounts Receivable 5.9 48.2 54.1
Inventory 0.0 0.7 0.7
Prepayments and Advances 0.0 6.4 6.4
Other Current Assets 4.3 5.7 10.0
Current Assets 274.7 214.4 489.1
PPE 0.0 3.3 3.3
Accum D&A 0.0 -0.6 -0.6
PPE, Net 97.4 2.6 100.0
Goodwill & Intangibles 0.0 5.5 5.5
Other Assets 0.0 0.0 0.0
Other LT Assets 105.3 2.5 107.8
Total Assets 477.4 225.1 702.5
Liabilities
Accounts Payable 0.0 16.8 16.8
Payable/Accrued 16.8 0.0 16.8
Accrued Expenses 0.0 12.1 12.1
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 5.5 0.0 5.5
Other (Current) Liabilities 10.4 5.0 15.4
Current Liab. 32.8 33.9 66.7
LT Debt 0.0 0.0 0.0
Capitalized Lease Obligations 52.4 0.0 52.4
Total LT Debt 52.4 0.0 52.4
Other LT Liab. 8.4 2.2 10.7
Total Liabilities 93.6 36.1 129.7
Shareholders Equity
Common Stock 0.0 0.3 0.4
Additional Paid in Capital 711.0 454.7 1,165.8
Retained Earnings -326.0 -266.1 -592.2
Other Equity -1.2 0.0 -1.2
Total Equity 383.8 188.9 572.8
Total Liab. & Equity 477.4 225.1 702.5
Shares Outstanding 37.7 34.2 71.9
Cash Flow
Operating Cash Flow
CF Net Income -29.3 40.8 11.6
CF Depreciation 10.3 1.2 11.6
CF Deferred Taxes 0.0 4.7 4.7
Other Non-Cash Items -14.1 3.4 -10.7
Change in Working Capital 7.9 -10.4 -2.6
Total Cash From Operating Activities -25.2 39.7 14.5
Investing Cash Flow
Capital Expenditures -6.4 -3.2 -9.7
Other Investing Cash Flows 64.8 -0.9 63.9
Total Cash From Investing Activities 58.4 -4.1 54.3
Financing Cash Flow
Dividends Paid 0.0 -45.0 -45.0
Purchase Or Sale of Stock 30.1 115.1 145.1
Purchase and Retirement of Debt -6.5 0.0 -6.5
Other Financing Cash Flow 0.1 11.1 11.2
Total Cash From Financing Activities 23.7 81.1 104.8
Exchange Rate Effects 0.0 0.0 0.0
Net Change in Cash 56.9 116.7 173.6
Cash Taxes Paid 0.0 13.1 13.1
Cash Interest Paid 4.5 0.0 4.5