Summary

Other Scenarios:

Buyer: PDL BioPharma Inc. (PDLI) Last Price: 15.75 Market Cap.: 1.84B
Target: PharmaNet Development Group Inc. (PDGI) Last Price: 39.88 Market Cap.: 753.90M

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
Technology   1,038
Software   314

- 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: 15)
  • KeyStone Laboratories
  • Synfine Research Inc.
  • PharmaNet Development Group, Inc.
  • Lee Coast Research Inc.
Buyer
  • Retavase (Reteplase)
  • Ularitide
  • Nuvion (Visilizumab)
  • Zenapax (Daclizumab)
Target
  • PharmaNet, Inc.
  • TeleSys Interactive Voice Response System (IVRS)
  • WebSys Clinical Data Management System (CDM)
  • PROMIS Clinical Trial Management System (CTMS)

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)
  • Accentia Biopharmaceuticals, Inc (ABPI)
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 2,089
Revenue Per Employee 401,350.5 238,837.2
Total Revenue 110.1 124.4
Total Expenses 117.8 110.7
Other Revenue 0.0 0.0
Cost of Revenue 16.8 81.7
SG&A Expense 39.9 27.5
Research & Development 56.0 0.0
Other Operating Expense 0.2 0.0
Operating Income -7.7 13.7
Unusual Income 4.9 1.5
LT Debt to Capital 50.97 34.39
Fwd P/E 27.16 31.68
Fwd P/Rev 3.93 2.21
Book Value 511.9 282.5
Curr Portion of LTD/Cap Lease 6.3 2.5

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

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

PharmaNet Development Group Inc. (PDGI), formerly SFBC International, Inc., is a global drug development services company providing clinical development services, including consulting, Phase I and bioequivalency clinical studies, and Phase II, III and IV clinical development programs to branded pharmaceutical, biotechnology, generic drug and medical device companies around the world. The Company conducts its operations in two segments: early stage and late stage clinical development. Early stage consists primarily of its Phase I clinical trial facilities, bioanalytical laboratories and clinical laboratories. Late stage consists of its subsidiary, PharmaNet, Inc., which primarily provides late Phase II through Phase IV services.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 81.73 32.24
Operating Margin % -21.73 5.84
Quick Ratio 4.02 1.44
Current Ratio 4.95 1.6
Coverage Ratio 0.14 -0.32
Total Assets 1,163.4 592.4
Return on Equity % -18.6 4.42
Return on Assets % -8.18 2.11
Cash+ ST Inv. Per Share 3.01 3.48
Total Debt 538.5 150.6
Total Debt to Equity % 105.2 53.31
Total Debt to Tangible Equity % 315.34 n/a
Debt to Asset % 46.28 25.43

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:

  • KeyStone Laboratories
  
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.
  
Technology  
Software  
Industry-Specific
Software that has functionality specific to a vertical industry.
  

- 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:

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

Target Products:

  • KeyStone Laboratories
  
Development/Manufacturing Services  
Contract Manufacturing Organizations (CMO)  
Pharmaceuticals  
Active/Intermediate Chemicals
Intermediate and active ingredient contract manufacturing organizations that produce large quantities of small molecule compounds for use in final dosage forms.

Target Products:

  • Synfine Research Inc.
  
Final Dosage Forms
Contract Manufacturing Organizations (CMO) that produce large quantities of drug products in final dosage forms ready to be sold to end users.

Target Products:

  • Synfine Research Inc.
  
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:

  • PharmaNet Development Group, Inc.
  • Lee Coast Research Inc.
  • KeyStone Laboratories
  • Anapharm Europe, S.L.
  • Taylor Technology, Inc.
  • Synfine Research Inc.
  • PharmaNet, Inc.
  • New Drug Services, Inc.
  • Pharmaceutical Development Associates, Inc.
  • SFBC New Drug Services Canada
  • Clinical Pharmacology Associates
  
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
  
Technology  
Software  
Industry-Specific  
Healthcare/Pharma  
Drug Development  
Clinical Trials Management
Software designed to manage the information and processes relating to clinical trials.

Target Products:

  • TeleSys Interactive Voice Response System (IVRS)
  • WebSys Clinical Data Management System (CDM)
  • PROMIS Clinical Trial Management System (CTMS)
  • PharmaSoft Suite
  

- 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 120,886.182 11.55 11.32 2.72 2.69 11.88
Genentech, Inc. n/a 75,400.266 27.22 23.00 6.43 5.90 n/a
Baxter International Inc. n/a 37,797.061 22.14 18.75 3.36 3.13 5.47
Hospira, Inc. n/a 6,384.202 59.06 18.86 2.00 1.87 n/a
Medarex, Inc. n/a 1,112.351 0.00 -39.13 23.62 24.34 2.27
Sangamo Biosciences, Inc. n/a 459.219 0.00 -19.13 50.47 32.30 n/a
Dyax Corp. n/a 244.075 0.00 -3.09 22.01 22.89 7.98
Nuvelo, Inc. n/a 89.159 0.00 -6.52 1.87 1.98 1.24
RegeneRx Biopharmaceuticals, Inc. n/a 46.554 0.00 n/a 96.15 n/a 4.94
DOR BioPharma, Inc. n/a 18.955 0.00 n/a 11.79 n/a 11.04
Boehringer Ingelheim GmbH n/a n/a n/a n/a n/a n/a n/a
Target
  Pharmaceutical Product Development, Inc. n/a 5,438.541 33.28 24.97 3.84 3.53 n/a
Covance Inc. n/a 5,267.675 29.94 25.60 3.23 2.92 5.24
ICON plc (ADR) n/a 2,018.478 36.07 29.63 3.20 2.60 n/a
MDS Inc. (USA) n/a 1,986.272 2.57 24.92 1.64 1.52 3.73
PAREXEL International Corporation n/a 1,604.528 34.40 34.52 1.56 1.71 8.57
Kendle International Inc. n/a 577.200 75.30 24.91 1.08 1.51 n/a
National Presto Industries Inc. n/a 375.395 13.43 n/a 1.23 n/a 1.38
Encorium Group Inc. n/a 46.668 0.00 n/a 1.38 n/a 17.78
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% 731.053 0.00 -11.42 32.61 23.81 13.54
Johnson & Johnson n/a 180,805.370 17.10 14.22 2.96 2.83 n/a
Pharmaceutical Product Development, Inc. n/a 5,438.541 33.28 24.97 3.84 3.53 n/a
ARIUS Research, Inc. n/a 60.414 0.00 n/a 52.73 n/a 6.71
Target
  Accentia Biopharmaceuticals, Inc n/a 111.406 0.00 -2.05 6.66 0.42 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
  Genentech, Inc. 36.00% 75,400.266 27.22 23.00 6.43 5.90 n/a
Cardinal Health, Inc. 18.00% 21,673.808 14.00 15.80 0.24 0.23 16.74
AmerisourceBergen Corp. 14.00% 7,003.441 15.33 14.78 0.10 0.10 n/a
McKesson Corporation 13.00% 17,294.129 18.40 17.72 0.17 0.17 5.84
AstraZeneca plc (ADR) 8.00% 57,866.719 10.04 9.12 2.03 1.90 n/a
Roche Holding Ltd. (ADR) n/a 156,468.838 17.60 17.93 3.72 3.78 5.34
Wyeth n/a 55,668.048 12.06 11.96 2.49 2.46 n/a
Biogen Idec Inc. n/a 17,966.270 28.20 18.53 5.66 4.89 9.43
Elan Corporation, plc (ADR) n/a 10,943.621 0.00 -59.27 14.41 10.82 n/a
Seattle Genetics, Inc. n/a 731.053 0.00 -11.42 32.61 23.81 13.54
Progenics Pharmaceuticals, Inc. n/a 445.634 0.00 -10.57 5.43 6.03 2.83
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 180,805.370 17.10 14.22 2.96 2.83 n/a
Roche Holding Ltd. (ADR) n/a 156,468.838 17.60 17.93 3.72 3.78 5.34
Genentech, Inc. n/a 75,400.266 27.22 23.00 6.43 5.90 n/a
Eli Lilly & Co. n/a 57,294.148 19.40 12.68 3.07 2.79 n/a
Wyeth n/a 55,668.048 12.06 11.96 2.49 2.46 n/a
Cardinal Health, Inc. n/a 21,673.808 14.00 15.80 0.24 0.23 16.74
Biogen Idec Inc. n/a 17,966.270 28.20 18.53 5.66 4.89 9.43
Kirin Holdings Company, Ltd. (ADR) n/a 15,275.668 32.98 28.41 1.00 0.90 2.46
Elan Corporation, plc (ADR) n/a 10,943.621 0.00 -59.27 14.41 10.82 n/a
Seattle Genetics, Inc. n/a 731.053 0.00 -11.42 32.61 23.81 13.54
Exelixis, Inc. n/a 605.194 0.00 -4.15 5.33 6.30 n/a
Progenics Pharmaceuticals, Inc. n/a 445.634 0.00 -10.57 5.43 6.03 2.83
ARIUS Research, Inc. n/a 60.414 0.00 n/a 52.73 n/a 6.71
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
  Accentia Biopharmaceuticals, Inc n/a 111.406 0.00 -2.05 6.66 0.42 n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 463.9 444.7 908.6
Other Revenue 0.0 0.0 0.0
Total Revenue 463.9 444.7 908.6
Cost of Revenue 84.8 301.3 386.1
SG&A Expense 151.8 107.0 258.7
Depreciation & Amortization 0.0 0.0 0.0
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 10.4 94.0
Total Expenses 564.7 418.7 983.4
Operating Income -100.8 26.0 -74.8
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -13.9 -8.2 -22.1
Other, Net 20.6 0.5 21.1
Income Before Taxes -94.1 18.3 -75.8
Income Taxes 1.1 5.8 6.9
Income After Taxes -95.2 12.5 -82.7
Minority Interest (IS) 0.0 -0.7 -0.7
Net Income - Excl. Xord. Items -95.2 11.8 -83.4
Discontinued Operations 0.0 -14.8 -14.8
Net Income - Incl. Xord. Items -95.2 -3.0 -98.2
Income Avail. to Common -95.2 -3.0 -98.2
Share Items
Basic Avg. Shares Outstanding 116.9 18.9 135.8
Basic EPS - Excl. Xord. Items n/a 0.62 -0.61
Basic EPS - Incl. Xord. Items n/a n/a -0.72
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 116.9 19.1 136.0
F.D. EPS - Excl. Xord. Items n/a 0.62 -0.61
F.D. EPS - Incl. Xord. Items n/a n/a -0.72
Balance Sheet
Assets
Cash and Equivalents 210.0 60.4 270.4
ST Investments 141.2 6.1 147.3
Accounts Receivable 9.3 136.6 146.0
Inventory 26.9 0.0 26.9
Prepayments and Advances 0.0 13.3 13.3
Other Current Assets 56.5 9.6 66.1
Current Assets 444.0 226.1 670.1
Accum D&A 0.0 0.0 0.0
PPE, Net 329.5 64.4 393.9
Goodwill & Intangibles 341.1 294.1 635.2
Long Term Investments 30.0 0.0 30.0
Other Assets 0.0 0.0 0.0
Other LT Assets 18.8 7.7 26.5
Total Assets 1,163.4 592.4 1,755.7
Liabilities
Accounts Payable 4.9 11.4 16.3
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 66.0 44.0 110.0
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 6.3 2.5 8.9
Other (Current) Liabilities 12.4 83.4 95.8
Current Liab. 89.6 141.3 231.0
LT Debt 532.1 143.8 675.9
Capitalized Lease Obligations 0.0 4.3 4.3
Total LT Debt 532.1 148.1 680.2
Minority Interest (BS) 0.0 2.3 2.3
Deferred Taxes 0.0 1.9 1.9
Other LT Liab. 29.7 16.3 46.0
Total Liabilities 651.5 309.8 961.4
Shareholders Equity
Common Stock 1.2 0.0 1.2
Additional Paid in Capital 1,087.2 244.3 1,331.5
Retained Earnings -575.8 18.6 -557.2
Other Equity -0.8 19.6 18.8
Total Equity 511.9 282.5 794.4
Total Liab. & Equity 1,163.4 592.4 1,755.7
Shares Outstanding 117.0 18.9 135.9
Cash Flow
Operating Cash Flow
CF Net Income -84.6 -3.0 -87.6
CF Depreciation 22.6 14.7 37.3
CF Amortization 29.2 0.0 29.2
CF Deferred Taxes -4.8 -2.6 -7.4
Other Non-Cash Items 95.6 30.3 125.9
Change in Working Capital -4.7 -12.6 -17.3
Total Cash From Operating Activities 53.3 26.8 80.1
Investing Cash Flow (not calculated)
Capital Expenditures -75.3 -20.5 -95.8
Other Investing Cash Flows 33.4 -2.7 30.7
Total Cash From Investing Activities -42.0 -23.2 -65.2
Financing Cash Flow (not calculated)
Dividends Paid 0.0 0.0 0.0
Purchase Or Sale of Stock 29.1 4.7 33.8
Purchase and Retirement of Debt -1.0 -20.2 -21.1
Other Financing Cash Flow 1.9 15.7 17.6
Total Cash From Financing Activities 30.0 0.2 30.3
Exchange Rate Effects 0.0 4.2 4.2
Net Change in Cash 41.3 8.1 49.4
Cash Taxes Paid 0.9 6.1 7.0
Cash Interest Paid 12.4 4.8 17.2