Finance Case Study (want original and correct work)..
Title Page
| This spreadsheet supports the STUDENT analysis of the case “Sanofi-Aventis’s Tender Offer for Genzyme” (UVA-F-1716). |
| This spreadsheet was prepared by Dmitriy Aleyev (MBA ’14) and Chong Xu (MBA ’14), under the supervision of Kenneth M. Eades, Professor of Business Administration; and Pedro Matos, Associate Professor of Business Administration. Copyright © 2014 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. For customer service inquiries, send an e-mail tosales@dardenbusinesspublishing.com. No part of this publication may be reproduced, stored in a retrieval system, posted to the Internet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. |
| Oct. 22, 2014 |
Exhibit 2
Exhibit 13
| Exhibit 13 | ||||||
| SANOFI-AVENTIS’S TENDER OFFER FOR GENZYME | ||||||
| Genzyme—Financial Data for Market Comparables as of Year-End 2009 | ||||||
| Genzyme (GENZ) | Amgen (AMGN) | Biogen (BIIB) | Celgene (CELG) | Gilead (GILD) | Life Tech (LIFE) | |
| Revenues | $4,516 | $14,642 | $3,153 | $2,567 | $7,011 | $3,280 |
| EBIT | $504 | $5,506 | $1,295 | $842 | $3,529 | $386 |
| EBITDA | $770 | $6,555 | $2,013 | $1,003 | $3,742 | $928 |
| EBITDA Margin (%) | 17.1% | 44.8% | 63.8% | 39.1% | 53.4% | 28.3% |
| Net Income | $422 | $4,605 | $977 | $777 | $2,626 | $145 |
| Net Income Margin | 9.3% | 31.5% | 31.0% | 30.3% | 37.5% | 4.4% |
| Weighted Avg. Shares (in millions) | 268 | 1,016 | 287 | 459 | 905 | 176 |
| EPS (Basic) | $1.57 | $4.53 | $3.40 | $1.69 | $2.90 | $0.82 |
| Stock Price | $49.0 | $56.6 | $53.5 | $27.8 | $21.6 | $52.2 |
| Equity (Market Cap) | $13,159 | $57,475 | $15,371 | $12,779 | $19,584 | $9,191 |
| P/E (Trailing) | 31.2× | 12.5× | 15.7× | 16.4× | 7.5× | 63.4× |
| Beta (Value Line) | 0.70 | 0.65 | 0.75 | 0.80 | 0.65 | 0.80 |
| Debt (Interest Bearing) | $124 | $10,601 | $1,100 | $0 | $1,161 | $3,102 |
| Equity | $7,684 | $22,667 | $6,262 | $4,395 | $6,505 | $4,027 |
| Debt/Equity | 1.6% | 46.8% | 17.6% | 0.0% | 17.8% | 77.0% |
| Debt/Market Cap | 0.9% | 18.4% | 7.2% | 0.0% | 5.9% | 33.8% |
| Interest Expense | ($18) | $578 | $0 | $2 | $28 | $188 |
| EBITDA/Interest Expense | NA | 11.3 | NA | 501.5 | 133.6 | 4.9 |
| Long-Term Debt Rating (S&P) | A− | A+ | BBB+ | BBB+ | A− | BBB |
| Enterprise Value (EV) | $13,283 | $68,076 | $16,471 | $12,779 | $20,745 | $12,293 |
| EV/EBITDA | 17.3× | 10.4× | 8.2× | 12.7× | 5.5× | 13.2× |
| EV/Sales | 2.9× | 4.6× | 5.2× | 5.0× | 3.0× | 3.7× |
| Data sources: Company 10-K filings, CapitalIQ, Bloomberg, Value Line, Standard & Poor’s, GEO Investing. |
Exhibit 17
| SANOFI-AVENTIS’S TENDER OFFER FOR GENZYME | |||||||||
| Genzyme—Financial Forecasts (Management Scenario) in Millions of U.S. Dollars | |||||||||
| Reported | Actual | Projected | |||||||
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Revenue sources | |||||||||
| Personalized Genetic Health | $1,850.0 | $1,757.5 | $2,284.8 | $2,513.2 | $3,015.9 | $3,468.3 | $3,815.1 | ||
| % Growth | -5% | 30% | 10% | 20% | 15% | 10% | |||
| Renal and Endocrinology | $1,008.0 | $1,058.4 | $1,111.3 | $1,166.9 | $1,225.2 | $980.2 | $784.1 | ||
| % Growth | 5% | 5% | 5% | 5% | -20% | -20% | |||
| Biosurgery | $513.7 | $590.8 | $679.4 | $781.3 | $976.6 | $1,171.9 | $1,347.7 | ||
| % Growth | 15% | 15% | 15% | 25% | 20% | 15% | |||
| Hematology and Oncology | $509.8 | $688.2 | $929.1 | $1,254.3 | $1,630.6 | $2,038.2 | $2,445.9 | ||
| % Growth | 35% | 35% | 35% | 30% | 25% | 20% | |||
| Other | $29.1 | $20.4 | $21.4 | $22.0 | $22.7 | $23.4 | $24.1 | ||
| % Growth | -30% | 5% | 3% | 3% | 3% | 3% | |||
| Pipeline (probability adjusted) | $0.0 | $0.0 | $0.0 | $25.0 | $500.0 | $1,100.0 | $1,500.0 | ||
| % Growth | 1900% | 120% | 75% | ||||||
| Revenues | ERROR:#REF! | ERROR:#REF! | $4,076.7 | $4,115.5 | $5,026.8 | $5,763.4 | $7,371.8 | $8,782.4 | $9,917.2 |
| % Growth | - | ERROR:#REF! | 1% | 22% | 15% | 28% | 19% | 13% | |
| COGS | ERROR:#REF! | ERROR:#REF! | ($1,386.1) | ($1,316.9) | ($1,533.2) | ($1,671.4) | ($2,027.2) | ($2,283.4) | ($2,578.5) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 34% | 32.0% | 30.5% | 29.0% | 27.5% | 26.0% | 26.0% |
| Gross Profit | ERROR:#REF! | ERROR:#REF! | $2,690.6 | $2,798.5 | $3,493.7 | $4,092.0 | $5,344.6 | $6,499.0 | $7,338.7 |
| % Gross Margin | ERROR:#REF! | ERROR:#REF! | 66% | 68% | 70% | 71% | 73% | 74% | 74% |
| General & Administrative | ERROR:#REF! | ERROR:#REF! | ($1,428.6) | ($1,337.5) | ($1,558.3) | ($1,786.7) | ($2,285.3) | ($2,722.5) | ($3,074.3) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 35% | 33% | 31% | 31% | 31% | 31% | 31% |
| R&D | ERROR:#REF! | ERROR:#REF! | ($865.3) | ($864.2) | ($1,055.6) | ($1,210.3) | ($1,548.1) | ($1,844.3) | ($2,082.6) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 21% | 21% | 21% | 21% | 21% | 21% | 21% |
| Service and R&D Revenues | ERROR:#REF! | ERROR:#REF! | $438.9 | $411.5 | $502.7 | $576.3 | $737.2 | $878.2 | $991.7 |
| ERROR:#REF! | ERROR:#REF! | 11% | 10% | 10% | 10% | 10% | 10% | 10% | |
| EBITDA | $835.6 | $1,008.3 | $1,382.4 | $1,671.4 | $2,248.4 | $2,810.4 | $3,173.5 | ||
| Depreciation & Amortization | ERROR:#REF! | ERROR:#REF! | ($266.3) | ($288.1) | ($351.9) | ($403.4) | ($516.0) | ($614.8) | ($694.2) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 7% | 7% | 7% | 7% | 7% | 7% | 7% |
| Other Expenses | ERROR:#REF! | ERROR:#REF! | ($65.6) | ($205.8) | ($50.3) | ($57.6) | ($73.7) | $0.0 | $0.0 |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 2% | 5% | 1% | 1% | 1% | 0% | 0% |
| Operating Income (EBIT) | ERROR:#REF! | ERROR:#REF! | $503.7 | $514.4 | $980.2 | $1,210.3 | $1,658.7 | $2,195.6 | $2,479.3 |
| % EBIT Margin | ERROR:#REF! | ERROR:#REF! | 12% | 13% | 20% | 21% | 23% | 25% | 25% |
| Taxes | ERROR:#REF! | ERROR:#REF! | ($121.4) | ($180.1) | ($343.1) | ($423.6) | ($580.5) | ($768.5) | ($867.8) |
| % Tax rate | ERROR:#REF! | ERROR:#REF! | 35% | 35% | 35% | 35% | 35% | 35% | |
| NOPAT (Net Op Profit After Tax) | ERROR:#REF! | ERROR:#REF! | $382.3 | $334.4 | $637.2 | $786.7 | $1,078.1 | $1,427.1 | $1,611.5 |
| Source: Analyst reports and case writer estimates. |
Exhibit 18
| SANOFI-AVENTIS’S TENDER OFFER FOR GENZYME | |||||||||
| Genzyme—Financial Forecasts (Market Scenario) in Millions of U.S. Dollars | |||||||||
| Reported | Projected | ||||||||
| 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Revenue sources | |||||||||
| Personalized Genetic Health | $1,850.0 | $1,665.0 | $2,164.5 | $2,489.2 | $2,787.9 | $3,122.4 | $3,497.1 | ||
| % Growth | -10.0% | 30.0% | 15.0% | 12.0% | 12.0% | 12.0% | |||
| Renal and Endocrinology | $1,008.0 | $1,038.2 | $1,069.4 | $1,101.5 | $1,134.5 | $850.9 | $595.6 | ||
| % Growth | 3.0% | 3.0% | 3.0% | 3.0% | -25.0% | -30.0% | |||
| Biosurgery | $513.7 | $590.8 | $679.4 | $781.3 | $898.5 | $1,033.2 | $1,157.2 | ||
| % Growth | 15.0% | 15.0% | 15.0% | 15.0% | 15.0% | 12.0% | |||
| Hematology and Oncology | $509.8 | $688.2 | $894.7 | $1,118.4 | $1,342.0 | $1,543.4 | $1,774.9 | ||
| % Growth | 35.0% | 30.0% | 25.0% | 20.0% | 15.0% | 15.0% | |||
| Other | $29.1 | $20.4 | $21.0 | $21.6 | $22.3 | $22.9 | $23.6 | ||
| % Growth | -30.0% | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% | |||
| Pipeline (probability adjusted) | $0.0 | $0.0 | $0.0 | $20.0 | $70.0 | $220.0 | $300.0 | ||
| % Growth | 250.0% | 214.3% | 75.0% | ||||||
| Revenues | ERROR:#REF! | ERROR:#REF! | $4,076.7 | $4,002.7 | $4,829.7 | $5,532.5 | $6,255.7 | $6,793.0 | $7,348.5 |
| % Growth | - | ERROR:#REF! | -2% | 21% | 15% | 13% | 9% | 8% | |
| COGS | ERROR:#REF! | ERROR:#REF! | ($1,386.1) | ($1,280.9) | ($1,473.1) | ($1,604.4) | ($1,720.3) | ($1,766.2) | ($1,910.6) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 34% | 32.0% | 30.5% | 29.0% | 27.5% | 26.0% | 26.0% |
| Gross Profit | ERROR:#REF! | ERROR:#REF! | $2,690.6 | $2,721.9 | $3,356.7 | $3,928.1 | $4,535.4 | $5,026.8 | $5,437.9 |
| % Gross Margin | ERROR:#REF! | ERROR:#REF! | 66% | 68% | 70% | 71% | 73% | 74% | 74% |
| General & Administrative | ERROR:#REF! | ERROR:#REF! | ($1,428.6) | ($1,300.9) | ($1,497.2) | ($1,632.1) | ($1,845.4) | ($2,003.9) | ($2,167.8) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 35.0% | 32.5% | 31.0% | 29.5% | 29.5% | 29.5% | 29.5% |
| R&D | ERROR:#REF! | ERROR:#REF! | ($865.3) | ($840.6) | ($1,014.2) | ($1,161.8) | ($1,313.7) | ($1,426.5) | ($1,543.2) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 21% | 21% | 21% | 21% | 21% | 21% | 21% |
| Service and R&D Revenues | ERROR:#REF! | ERROR:#REF! | $438.9 | $400.3 | $483.0 | $553.3 | $625.6 | $679.3 | $734.9 |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 11% | 10% | 10% | 10% | 10% | 10% | 10% |
| EBITDA | $835.6 | $980.7 | $1,328.2 | $1,687.4 | $2,001.8 | $2,275.7 | $2,461.8 | ||
| Depreciation & Amortization | ERROR:#REF! | ERROR:#REF! | ($266.3) | ($280.2) | ($338.1) | ($387.3) | ($437.9) | ($475.5) | ($514.4) |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 7% | 7% | 7% | 7% | 7% | 7% | 7% |
| Other Expenses | ERROR:#REF! | ERROR:#REF! | ($65.6) | ($200.1) | ($48.3) | ($55.3) | ($62.6) | $0.0 | $0.0 |
| % of Revenues | ERROR:#REF! | ERROR:#REF! | 2% | 5% | 1% | 1% | 1% | 0% | 0% |
| Operating Income (EBIT) | ERROR:#REF! | ERROR:#REF! | $503.7 | $500.3 | $941.8 | $1,244.8 | $1,501.4 | $1,800.2 | $1,947.4 |
| % EBIT Margin | ERROR:#REF! | ERROR:#REF! | 12% | 13% | 20% | 23% | 24% | 27% | 27% |
| Taxes | ERROR:#REF! | ERROR:#REF! | ($121.4) | ($175.1) | ($329.6) | ($435.7) | ($525.5) | ($630.1) | ($681.6) |
| % Tax rate | ERROR:#REF! | ERROR:#REF! | 35% | 35% | 35% | 35% | 35% | 35% | 35% |
| NOPAT (Net Op Profit After Tax) | ERROR:#REF! | ERROR:#REF! | $382.3 | $325.2 | $612.2 | $809.1 | $975.9 | $1,170.1 | $1,265.8 |
| Source: Analyst reports and case writer estimates. |