Summary

Other Scenarios:

Buyer: PDL BioPharma Inc. (PDLI) Last Price: 15.63 Market Cap.: 1.83B
Target: ICON plc (ADR) (ICLR) Last Price: 62.89 Market Cap.: 1.81B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Healthcare 927
Biopharmaceuticals   378
Healthcare Services   153
Outsourced Services 68

- 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: 8)
  • Humanized Antibody Technology
Target (Total: 11)
  • ICON Central Laboratories
  • ICON Clinical Research
  • Healthcare Discoveries Inc
  • ICON Clinical Trials Services
Buyer
  • Retavase (Reteplase)
  • Ularitide
  • Nuvion (Visilizumab)
  • Zenapax (Daclizumab)
Target
  • ICON Development Solutions
  • Beacon Bioscience, Inc.
  • Globomax LLC
  • ICON Contracting Solutions

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 4)
  • Seattle Genetics, Inc. (SGEN)
  • Johnson & Johnson (JNJ)
  • Pharmaceutical Product Development, Inc. (PPDI)
  • ARIUS Research, Inc. (ARI:CA)
Target (Total: 1)
  • Highwoods Properties, Inc. (HIW)
Buyer (Total: 12)
  • Genentech, Inc. (DNA)
  • Cardinal Health, Inc. (CAH)
  • AmerisourceBergen Corp. (ABC)
  • McKesson Corporation (MCK)
Target (Total: 0)

n/a

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 1,100 5,400
Revenue Per Employee 401,350.5 152,505.3
Total Revenue 110.1 166.9
Total Expenses 117.8 148.2
Other Revenue 0.0 0.0
Cost of Revenue 16.8 91.7
SG&A Expense 39.9 51.5
Research & Development 56.0 0.0
Other Operating Expense 0.2 0.0
Operating Income -7.7 18.7
Unusual Income 4.9 0.0
LT Debt to Capital 50.97 0.02
Fwd P/E 25.07 34.40
Fwd P/Rev 3.63 2.98
Book Value 511.9 360.0
Curr Portion of LTD/Cap Lease 6.3 0.0

Individual Company Summary

Focused

Buyer

Focused (): Healthcare > Outsourced Services > Drug Discovery Services > Lead Discovery/Validation/Optimization > Lead Biologics > Antibodies

Target

Focused (): Healthcare > Outsourced Services > Development/Manufacturing Services > Contract Research Organizations (CRO) > Limited Service > Clinical

Business Description

Buyer

PDL BioPharma Inc., is a biopharmaceutical company focused on discovering, developing and commercializing therapies for severe or life threatening illnesses. The Company markets and sells products in the acute care hospital setting in the United States and Canada, and receives royalties through licensing agreements with a number of biotechnology and pharmaceutical companies based on its antibody humanization technology platform. The Company's product development pipeline includes six investigational compounds in Phase II or Phase III clinical development for hepatorenal syndrome, inflammation and autoimmune diseases, cardiovascular disorders and cancer. In September 2006, the Company completed the acquisition of various Cardene product-related rights from Roche to solidify its Cardene brand franchise in the United States. In April 2006, the Company completed the Scientific Advice procedure with the EMEA for its Phase III trial of ularitide.

Target

ICON plc is a contract research organization (CRO) that provides outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. The Company specializes in the strategic development, management and analysis of programs that support clinical development from compound selection to Phase I to Phase IV clinical studies. It provides Phase I to Phase IV Clinical Trial Management, Drug Development Support Services, Data Management and Biostatistics, and Central Laboratory and Imaging Services. ICON plc provides these development services to clients on a standalone basis or as part of an integrated full-service solution. The Company operates through 49 offices in 30 countries. In July 2007, the Company acquired DOCS International, a European clinical research staffing company. In February 2008, ICON plc acquired Healthcare Discoveries Inc, a wholly owned subsidiary of Catalyst Pharma Group Inc.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 81.73 43.48
Operating Margin % -21.73 10.93
Quick Ratio 4.02 0.94
Current Ratio 4.95 1.48
Coverage Ratio 0.14 0.05
Total Assets 1,163.4 631.8
Return on Equity % -18.6 14.35
Return on Assets % -8.18 8.18
Cash+ ST Inv. Per Share 3.01 3.29
Total Debt 538.5 70.6
Total Debt to Equity % 105.2 19.6
Total Debt to Tangible Equity % 315.34 29.94
Debt to Asset % 46.28 11.17

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.
  
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.
  
Oncology
The Oncology Subsector includes therapeutics that treat and manage various types of cancer and related complications.
  
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.
  
Transplantation
The Transplantation Subsectors includes therapeutics that treat rejection and infection associated with tissue transplantation into the human body.
  
Healthcare Services  
Support Services
The Support Services Subsector is comprised of companies that provide non-medical services for managing, enhancing, facilitating, and enabling the healthcare delivery process.
  
Outsourced Services
Analytical Services
The Analytical Services Subsector includes outsourced services that utilize analytical instruments to analyze biological and chemical samples.

Target Products:

  • ICON Central Laboratories
  • ICON Clinical Research
  
Development/Manufacturing Services
The Development/Manufacturing Services Subsector includes companies that provide research, development, manufacturing, sales and marketing to biopharmaceutical and medical device companies.
  
Drug Discovery Services
The Drug Discovery Services Subsector includes companies that provide biopharmaceutical companies with novel biological targets and drug leads.
  

- 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  
Heart Disorders  
Myocardial Infarction (MI)  
Thrombolytic Agents
Therapeutics that treat the ineffective pumping of the heart by dissolving blood clots in blood vessels.

Buyer Products:

  • Retavase (Reteplase)
  
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:

  • Ularitide
  
Digestive System  
Gastrointestinal Tract Disorders  
Intestinal Disorders  
Inflammatory Bowel Disease (IBD)  
Ulcerative Colitis  
Monoclonal Antibodies
Therapeutics that treat ulcerative colitis through modulation of immune pathways implicated in the progression of the disease.

Buyer Products:

  • Nuvion (Visilizumab)
  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the treatment of digestive disorders in early stages of clinical research where human subject is involved.

Buyer Products:

  • Nuvion (Visilizumab)
  
Immunology  
Autoimmune Disorders  
Inflammatory Bowel Disease (IBD)  
Ulcerative Colitis  
Monoclonal Antibodies
Therapeutics that treat ulcerative colitis through modulation of immune pathways implicated in the progression of the disease.

Buyer Products:

  • Nuvion (Visilizumab)
  
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:

  • Zenapax (Daclizumab)
  • Nuvion (Visilizumab)
  
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:

  • Therapeutic Antibody Candidates
  
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:

  • Zenapax (Daclizumab)
  
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:

  • HuLuc63 (Monoclonal Antibody)
  • M200 (Volociximab)
  
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:

  • Therapeutic Antibody Candidates
  
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.

Buyer Products:

  • Zenapax (Daclizumab)
  
Transplantation  
Phase I/Phase II Clinical Stage Products
Therapeutics that are being investigated for the management of rejection and infection in early stages of clinical research where human subject is involved.

Buyer Products:

  • Zenapax (Daclizumab)
  
Renal (Kidney)  
Rejection Prophylaxis  
Monoclonal Antibodies
Protein-based therapeutics that target specific substances like proteins.

Buyer Products:

  • Zenapax (Daclizumab)
  
Healthcare Services  
Support Services  
Consulting
Services providing advice, assistance, and information to a wide range of healthcare companies, including pharmaceutical, medical devices, and health services companies.

Target Products:

  • ICON Development Solutions
  • Beacon Bioscience, Inc.
  • Globomax LLC
  
Staffing/Recruiting  
Clinical  
Health Professionals
Staffing and recruiting of health professionals directly involved in the healthcare delivery process (i.e. physicians, physical therapists, occupational therapists, etc.).

Target Products:

  • ICON Contracting Solutions
  
General
Staffing and recruiting of personnel that are not directly involved with the delivery of healthcare but that are part of the overall healthcare delivery process (I.e. Hospital administrators, medical office staff, etc.).

Target Products:

  • DOCS International
  
Outsourced Services
Analytical Services
The Analytical Services Subsector includes outsourced services that utilize analytical instruments to analyze biological and chemical samples.

Target Products:

  • ICON Central Laboratories
  • ICON Clinical Research
  
Development/Manufacturing Services  
Contract Research Organizations (CRO)  
Limited Service  
Clinical
Limited Service Contract Research Organizations that design, manage, and monitor human studies of new therapeutics. Other services include project management, patient recruitment, data management, biostatistical analysis, medical and regulatory affairs, and quality assurance.

Target Products:

  • Healthcare Discoveries Inc
  • ICON Clinical Trials Services
  • Beacon Bioscience, Inc.
  • Globomax LLC
  • The Oncology Solution
  • Medeval Group Ltd.
  • ICON Clinical Research
  
Drug Discovery Services  
Lead Discovery/Validation/Optimization  
Lead Biologics  
Antibodies
Biological lead compounds which have a specific amino acid sequence that only interacts with specific substances to cause an immunological response.

Buyer Products:

  • Humanized Antibody Technology
  

- 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
  GlaxoSmithKline plc (ADR) n/a 121,467.568 11.54 11.02 2.71 2.62 11.91
Genentech, Inc. n/a 76,528.124 27.63 23.12 6.53 5.93 n/a
Baxter International Inc. n/a 37,625.864 22.04 18.85 3.34 3.14 5.44
Hospira, Inc. n/a 6,510.247 60.23 19.16 2.04 1.90 n/a
Medarex, Inc. n/a 1,191.259 0.00 -41.39 25.30 25.75 2.43
Sangamo Biosciences, Inc. n/a 460.825 0.00 -19.30 50.64 31.39 n/a
Dyax Corp. n/a 236.221 0.00 -3.13 21.30 23.17 7.72
Nuvelo, Inc. n/a 79.015 0.00 -5.56 1.66 1.69 1.10
RegeneRx Biopharmaceuticals, Inc. n/a 41.433 0.00 n/a 85.58 n/a 4.39
DOR BioPharma, Inc. n/a 22.746 0.00 n/a 14.15 n/a 13.25
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
Target
  UnitedHealth Group Inc. n/a 61,687.812 13.25 11.77 0.82 0.75 3.07
Covance Inc. n/a 5,239.584 29.78 26.12 3.21 2.98 5.22
Pharmaceutical Product Development, Inc. n/a 5,213.818 31.91 23.89 3.69 3.38 n/a
Omnicare, Inc. n/a 2,655.856 12.98 11.42 0.42 0.42 n/a
MDS Inc. (USA) n/a 2,041.447 2.64 25.52 1.69 1.57 3.84
PAREXEL International Corporation n/a 1,570.203 33.66 34.33 1.52 1.70 8.39
inVentiv Health Inc. n/a 989.784 23.73 19.16 1.07 1.02 n/a
PharmaNet Development Group Inc. n/a 759.574 0.00 29.83 1.71 2.11 n/a
Kendle International Inc. n/a 607.294 79.23 25.90 1.14 1.56 n/a
Encorium Group Inc. n/a 45.210 0.00 n/a 1.34 n/a 17.22
Quintiles Transnational Corp. 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
  Seattle Genetics, Inc. 1.60% 742.682 0.00 -12.14 33.13 23.30 13.76
Johnson & Johnson n/a 180,004.078 17.02 14.17 2.95 2.83 n/a
Pharmaceutical Product Development, Inc. n/a 5,213.818 31.91 23.89 3.69 3.38 n/a
ARIUS Research, Inc. n/a 52.359 0.00 n/a 45.70 n/a 5.81
Target
  Highwoods Properties, Inc. n/a 1,685.603 22.03 11.04 3.86 3.61 1.65

- 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
  Genentech, Inc. 36.00% 76,528.124 27.63 23.12 6.53 5.93 n/a
Cardinal Health, Inc. 18.00% 21,506.208 13.90 15.79 0.24 0.23 16.61
AmerisourceBergen Corp. 14.00% 7,092.874 15.53 15.22 0.11 0.10 n/a
McKesson Corporation 13.00% 16,910.073 17.99 17.49 0.17 0.17 5.71
AstraZeneca plc (ADR) 8.00% 56,468.128 9.80 8.94 1.98 1.83 n/a
Roche Holding Ltd. (ADR) n/a 152,673.567 17.17 17.94 3.63 3.78 5.21
Wyeth n/a 53,538.816 11.60 11.66 2.39 2.39 n/a
Biogen Idec Inc. n/a 18,247.571 28.59 19.40 5.75 5.04 9.58
Elan Corporation, plc (ADR) n/a 11,758.270 0.00 -86.24 53.86 11.14 n/a
Seattle Genetics, Inc. n/a 742.682 0.00 -12.14 33.13 23.30 13.76
Progenics Pharmaceuticals, Inc. n/a 479.503 0.00 -11.42 5.84 6.52 3.04
Chugai Pharmaceutical Co., Ltd. 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
  Johnson & Johnson n/a 180,004.078 17.02 14.17 2.95 2.83 n/a
Roche Holding Ltd. (ADR) n/a 152,673.567 17.17 17.94 3.63 3.78 5.21
Genentech, Inc. n/a 76,528.124 27.63 23.12 6.53 5.93 n/a
Eli Lilly & Co. n/a 57,645.785 19.52 12.72 3.09 2.80 n/a
Wyeth n/a 53,538.816 11.60 11.66 2.39 2.39 n/a
Cardinal Health, Inc. n/a 21,506.208 13.90 15.79 0.24 0.23 16.61
Biogen Idec Inc. n/a 18,247.571 28.59 19.40 5.75 5.04 9.58
Kirin Holdings Company, Ltd. (ADR) n/a 15,227.933 32.87 27.79 1.00 0.88 2.45
Elan Corporation, plc (ADR) n/a 11,758.270 0.00 -86.24 53.86 11.14 n/a
Seattle Genetics, Inc. n/a 742.682 0.00 -12.14 33.13 23.30 13.76
Exelixis, Inc. n/a 706.582 0.00 -4.72 6.23 5.19 n/a
Progenics Pharmaceuticals, Inc. n/a 479.503 0.00 -11.42 5.84 6.52 3.04
ARIUS Research, Inc. n/a 52.359 0.00 n/a 45.70 n/a 5.81
Aphton Corporation n/a 0.034 0.00 n/a n/a n/a n/a
Pierre Fabre Medicament n/a n/a n/a n/a n/a n/a n/a
Chugai Pharmaceutical Co., Ltd. n/a n/a n/a n/a n/a n/a n/a
Ophthotech Corp. n/a n/a n/a n/a n/a n/a n/a
Target
  Phase Forward Incorporated n/a 694.091 23.77 43.92 5.17 4.26 3.70
Neurobiological Technologies, Inc. n/a 69.974 0.00 -2.77 4.26 4.94 2.52

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 463.9 579.0 1,042.9
Other Revenue 0.0 0.0 0.0
Total Revenue 463.9 579.0 1,042.9
Cost of Revenue 84.8 327.2 412.0
SG&A Expense 151.8 171.0 322.7
Depreciation & Amortization 0.0 17.6 17.6
Research & Development 242.5 0.0 242.5
Interest Expense 0.0 0.0 0.0
Other Operating Expense 2.2 0.0 2.2
Unusual Expense (Income) 83.6 0.0 83.6
Total Expenses 564.7 515.7 1,080.5
Operating Income -100.8 63.3 -37.6
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -13.9 3.2 -10.7
Other, Net 20.6 0.0 20.6
Income Before Taxes -94.1 66.4 -27.6
Income Taxes 1.1 14.8 15.9
Income After Taxes -95.2 51.7 -43.5
Minority Interest (IS) 0.0 -0.2 -0.2
Net Income - Excl. Xord. Items -95.2 51.5 -43.7
Net Income - Incl. Xord. Items -95.2 51.5 -43.7
Income Avail. to Common -95.2 51.5 -43.7
Share Items
Basic Avg. Shares Outstanding 116.9 28.8 145.6
Basic EPS - Excl. Xord. Items n/a 1.79 -0.30
Basic EPS - Incl. Xord. Items n/a 1.79 -0.30
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 116.9 29.8 146.7
F.D. EPS - Excl. Xord. Items n/a 1.73 -0.30
F.D. EPS - Incl. Xord. Items n/a 1.73 -0.30
Balance Sheet
Assets
Cash and Equivalents 210.0 69.5 279.5
ST Investments 141.2 28.7 169.9
Accounts Receivable 9.3 148.8 158.2
Inventory 26.9 0.0 26.9
Prepayments and Advances 0.0 16.6 16.6
Other Current Assets 56.5 128.2 184.7
Current Assets 444.0 391.9 835.9
Accum D&A 0.0 0.0 0.0
PPE, Net 329.5 110.0 439.5
Goodwill & Intangibles 341.1 124.4 465.5
Long Term Investments 30.0 0.0 30.0
Other Assets 0.0 0.0 0.0
Other LT Assets 18.8 5.6 24.4
Total Assets 1,163.4 631.8 1,795.2
Liabilities
Accounts Payable 4.9 13.6 18.5
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 66.0 0.0 66.0
ST Debt 0.0 70.5 70.5
Curr Port of LTD & Cap Lease Oblg 6.3 0.0 6.3
Other (Current) Liabilities 12.4 179.9 192.3
Current Liab. 89.6 263.9 353.6
LT Debt 532.1 0.0 532.1
Capitalized Lease Obligations 0.0 0.1 0.1
Total LT Debt 532.1 0.1 532.2
Minority Interest (BS) 0.0 1.2 1.2
Deferred Taxes 0.0 5.4 5.4
Other LT Liab. 29.7 1.2 30.9
Total Liabilities 651.5 271.8 923.3
Shareholders Equity
Common Stock 1.2 2.1 3.3
Additional Paid in Capital 1,087.2 143.1 1,230.3
Retained Earnings -575.8 192.2 -383.6
Other Equity -0.8 22.6 21.8
Total Equity 511.9 360.0 871.8
Total Liab. & Equity 1,163.4 631.8 1,795.2
Shares Outstanding 117.0 28.8 145.8
Cash Flow
Operating Cash Flow
CF Net Income -84.6 51.5 -33.1
CF Depreciation 22.6 17.6 40.2
CF Amortization 29.2 0.0 29.2
CF Deferred Taxes -4.8 -1.9 -6.7
Other Non-Cash Items 95.6 5.5 101.1
Change in Working Capital -4.7 -34.3 -39.1
Total Cash From Operating Activities 53.3 38.3 91.6
Investing Cash Flow (not calculated)
Capital Expenditures -75.3 -61.9 -137.2
Other Investing Cash Flows 33.4 -32.1 1.3
Total Cash From Investing Activities -42.0 -94.0 -136.0
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 29.1 4.9 33.9
Purchase and Retirement of Debt -1.0 66.5 65.5
Other Financing Cash Flow 1.9 0.9 2.8
Total Cash From Financing Activities 30.0 72.3 102.3
Exchange Rate Effects 0.0 -2.0 -2.0
Net Change in Cash 41.3 14.6 55.9
Cash Taxes Paid 0.9 11.6 12.5
Cash Interest Paid 12.4 0.1 12.5