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Competitors

Neurology Division Competitors
Valeant Teva UCB S.A. H. Lundbeck A/S
Sales (mil) $820.40 $13,899.00 $4,170.60 $2,647.70
Employees 1,311 35,089 9,324 5,733
Growth 8.40% 25.40%  -19.2% 21.90%
Strategy Focused Differentiation Low Cost Growth
- Based on: neurology product focus early introduction of generics CNS products - 40% of sales developing medicine for CNS diseases
late-stage acquisitions alliances alliances - 30 partnerships for access to R&D innovation
R&D quickly provide new products through acquisitions - $120 million lowest R&D investment rates in the CNS product category highest reinvestment in R&D - 9 products in neurology pipeline 20% revenue spent on R&D - $530 million
Notes outsources secondary operations and acquires pipeline products Azilect offered through a collaborative agreement with H. Lundbeck seeking lead in severe disease, LT shareholder return, patient pain points, and bio-chem target of proteins Azilect offered through a collaborative agreement with Teva

Comp Perf

Rival Performance Measures
Key Numbers Valeant Lundbeck UCB Teva
Annual Sales ($ mil.) 820 2,648 4,171 13,899
Employees 1,311 5,733 9,324 35,089
Sales per employee 625,477 461,887 447,340 396,107
Profitability Valeant Lundbeck UCB Teva Industry Market
Gross Profit Margin 73.15% 80.40% 64.78% 56.11% 57.16% 28.77%
Pre-Tax Profit Margin -6.01% 22.29% 23.20% 21.32% 11.22% 8.48%
Net Profit Margin -11.46% 16.68% 17.63% 18.96% -0.48% 5.53%
Return on Equity -3.10% 22.90% 12.20% 14.40% -0.50% 10.10%
Return on Assets -1.60% 13.40% 5.50% 8.10% -0.20% 1.50%
Return on Invested Capital -1.60% 22.90% 12.20% 10.80% -0.30% 4.40%
P-E Ratio -59.88 8.98 9.66 17.36 50
Operations Valeant Lundbeck UCB Teva Industry Market
Days of Sales Outstanding 117.06 52.09 116.73 78.04 34.66
Inventory Turnover 0.8 1.9 2.7 1.9 2.5 8.1
Days CGS in Inventory 442 195 137 196 144 45
Asset Turnover 0.1 0.8 0.3 0.4 0.5 0.3
Net Receivables Turnover Flow 3.1 7 3.1 4.7 10.5
Liquidity/Leverage Valeant Lundbeck UCB Teva Industry Market
Current Ratio 1.36 1.36 0.87 1.6 2.05 1.33
Leverage Ratio 1.53 1.95 2.06 1.76 1.92 7.13
Total Debt/Equity 0.29 0.3 0.51 0.29 0.42 1.37
Interest Coverage -0.31 15.98 4.05 15.25 4.75 17.33
Per Share Valeant Lundbeck UCB Teva Industry Market
Revenue per Share 5.68 75.34 15.87 16.95 7.87
Dividends per Share 0.37 2.21 0.92 0.62 0.47 0.25
Cash Flow per Share 2.46 20.45 1.61 4.36 1.44
Total Assets per Share 6.89 87.33 49.74 36.12 13.69
Growth Valeant Lundbeck UCB Teva Industry Market
1-yr Revenue Growth 8.40% 21.90% -19.20% 25.40% 14.70% 31.90%
3-yr Revenue Growth -8.50% 14.20% 4.90% 18.20% 18.10% 14.30%
1-yr Net Income Growth -11.70% 32.90% 1095% 215% -27.70%
3-yr Net Income Growth -4.70% 21.90% 11.90% 54.20% 84.50% -5.60%

Prod Strat

Number of Products: 2009 2008 2007 2006 2005
Phase I 1
Phase II 2 1 1
Phase III 1
Pre-Registration 1 3
Launched 1 2 3 2 2
Product Condition Affected Population Projection Comments Competing Products
Zelapar - acquired Parkinson's 1 million (4-6 million worldwide) expected to rise dramatically as U.S. population ages - growing at 50-60,000 new cases each year once-daily dosage adjunctive treatment Teva's Azilect & generic Selegiline
Tasmar - acquired Parkinson's 2 million (4-6 million worldwide) last resort - Black Box warning Teva's Azilect & generic Selegiline
Diastat Acudial Epilepsy 3 million only FDA-approved at home medication - unattractive delivery system - developing new intranasal administration None
Retigabine (P) Epilepsy 3 million partial treatment - preliminary Swiss approval None
Migranal - acquired Migraines 28 million 200,000 new cases of seizures each year (30% not relieved by drugs) only intranasal product for patients with nausea Imigran/ Imitrex
Mestinon Myasthenia Gravis 13,600 low incidence approved but not promoted - little incentive to invest generics
Taribavirin (P) Hepatitis C
from the merger:
Wellbutrin XL Depression
Ultram ER Chronic Pain
Xenazine Huntington's Disease
Ativan Anxiety

Income

2009 2007 % Change 2011 Projection
Revenues:
Specialty Pharmaceuticals Product Sales $403,865 $326,682 23.6% 850-950,000
Specialty Pharmaceuticals Service and Alliance Revenue 73,028 19,200 280.4% +765-820 in Canada, Australia, dermatology
Branded Generics - Europe Product Sales 151,650 125,070 21.3% 225-245,000
Branded Generics - Latin America Product Sales 155,246 151,299 2.6% 260-285,000
Alliances (Ribavirin Royalties Only) 46,672 67,252 -30.6%
Consolidated Revenues 830,461 689,503 20.4% $2.1 - 2.3 billion
Operating Income (Loss):
Specialty Pharmaceuticals 165,920 14,846 1017.6%
Branded Generics - Europe 37,650 41,908 -10.2%
Branded Generics - Latin America 55,300 36,218 52.7%
Alliances 46,672 67,252 -30.6%
Income (Loss) from Continuing Operations Before Taxes 199,349 20,145 889.6%
Costs and Expenses:
Cost of Goods Sold 204,310 223,680 -8.7%
Selling/General/Administrative 178,600 159,270 12.1%
Research and development costs 120,780 118,120 2.3%
Amortization of Intangibles 104,730 48,050 118.0%
Total Operating Expenses 622,490 676,220 -7.9%
Income (Loss) from Operations 197,940 166,600 18.8%
NIBT 174,960 208,740 -16.2%
Net Income (Loss) 176,460 195,540 -9.8%
Gross Margin 74.56% 72.88% 2.3%
Operating Margin 24.13% 19.77% 22.1%
Net Profit Margin 21.51% 23.20% -7.3%
Gross Dividends - Common Stock 102,520 241,300 -57.5%

Balance Sheet

2009 2007 % Change
Cash $114,460 $433,640 -73.6%
Inventories 82,770 80,750 2.5%
Total Current Assets 350,640 707,020 -50.4%
Property/Plant/Equipment 221,950 391,190 -43.3%
Intangibles - Gross 1,805,350 933,480 93.4%
Accumulated Intangible Amortization (470,130) (302,970) 55.2%
Intangibles - Net 1,335,220 630,510 111.8%
Total Assets 2,067,040 1,782,120 16.0%
Total Current Liabilities 256,910 367,580 -30.1%
Long Term Debt 313,980 - 0
Total Liabilities 712,670 484,300 47.2%
Total Equity 1,354,370 1,297,820 4.4%
Employees 1,291 1,533 -15.8%