Discussion Materials
This presentation discusses the valuation methodologies, peer benchmarking analysis, multiples, growth rates, precedent transactions analysis, premiums paid analysis, and discounted cash flow analysis related to Project Jaguar. It provides insights into the financial profile and valuation of a specialty pharma company.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Confidential Draft Project Jaguar Discussion Materials August 31, 2021 Goldman Stanley 1
Section 3 Jaguar Valuation Goldman Stanley 2
Project Jaguar JAGUAR VALUATION Overview of Selected Valuation Methodologies Description of Considered and Applied Methodologies Goldman Stanley 3
Project Jaguar JAGUAR VALUATION Preliminary Valuation Summary Based on Management, Consensus, and Downside Forecasts(1)(2) Goldman Stanley 4
Project Jaguar JAGUAR VALUATION Peer Benchmarking Analysis U.S.-Based Specialty Pharma Companies with LTM Revenue Between $1 and $5 Billion Jaguar s unique financial profile (similar growth to its peer specialty pharmaceutical companies, but with greater scale) should drive a premium valuation. ($ USD in Billions) Even in the Downside Case, with significantly lower projected Revenue and EBITDA, Jaguar still exceeds the scale all but two peer companies by CY 23. Additionally, Jaguar s Revenue is more closely linked to existing products and, therefore, may be even higher on a probability-adjusted basis. Goldman Stanley 5
Project Jaguar JAGUAR VALUATION Peer Companies Multiples and Growth Rates U.S.-Based Specialty Pharma Companies with LTM Revenue Between $1 and $5 Billion Goldman Stanley 6
Project Jaguar JAGUAR VALUATION Analysis of Precedent Transactions LTM EBITDA Multiples Based on Biopharma M&A Targets with Over $500 Million in LTM Revenue Since 8/31/2011(1) Goldman Stanley 7
Project Jaguar JAGUAR VALUATION Premiums Paid Analysis Review of Premiums Paid for U.S.-Based Biopharma Sellers Since 8/31/2011(1) Goldman Stanley reviewed a list of 100 transactions involving U.S.-based biotechnology and pharmaceutical sellers over the past 10 years and narrowed the list to companies with over $500 million in LTM revenue. Early-stage acquisitions were excluded from the set because their cash flow profiles, risk, and valuation multiples are not comparable to Jaguar s existing, profitable business model in proven markets. Goldman Stanley 8
Project Jaguar JAGUAR VALUATION Discounted Cash Flow Analysis Jaguar Unlevered Free Cash Flow Projections Based on Consensus Forecast Figures(1) Discounted Cash Flow Analysis uses the following assumptions: ($ USD in Millions Except for Per Share Data) Goldman Stanley 9
Project Jaguar JAGUAR VALUATION Jaguar DCF Sensitivity Analysis Variance to Implied Share Price in DCF Based on Consensus Forecasts(1) Goldman Stanley 10
Project Jaguar JAGUAR VALUATION Jaguar WACC Analysis Based on Jaguar s Historical Beta and Capital Structure and Comparable Companies(1) Goldman Stanley reviewed Jaguar s historical data and information from the comparable companies: Given the wide differences in capital structures, it is crucial to calculate WACC via multiple methods The DCF assumes an initial WACC of 7.0% declining to 5.4% by Year 10, based on WACC figures in the 6.5% 8.5% range for Jaguar s higher-growth peers The final 5.4% rate in the Terminal Period is close to the average WACC produced by the three methods described here ($ USD in Billions) WACC Calculation Assumption Notes Low Base High Equity Risk Premium Duff & Phelps Valuation Handbook (2021) 5.5% 5.5% 5.5% Risk-Free Rate 10-year U.S. Treasury Yield as of 8/31/2020 1.3% 1.3% 1.3% Jaguar historical Beta and re-levered Beta from the comparable companies Levered Beta 0.78 0.97 1.35 Cost of Equity (Ke) Based on Capital Asset Pricing Model (CAPM) 5.6% 6.6% 8.7% Current capital structure and optimal capital structure from comps median Equity / Total Capitalization 96.6% 52.2% 52.2% Weighted YTM of Jaguar s current Debt, including Convertible Bonds Pre-Tax Cost of Debt 3.1% 3.1% 3.1% U.S. corporate tax rate + international benefits Tax Rate (T) 15.0% 15.0% 15.0% After-Tax Cost of Debt (Kd) 2.6% 2.6% 2.6% Current balance or comparables median Debt percentage Total Debt (D) $0.5 B $7.6 B $7.6 B Total Capitalization Jaguar current Debt + Equity Value $15.9 B $15.9 B $15.9 B Current capital structure and optimal capital structure from comps median Debt / Total Capitalization 3.4% 47.8% 47.8% WACC Ke * E / (D + E) + Kd * (1 T) * D / (D + E) 4.7% 5.5% 5.8% Goldman Stanley 11 (1) Market data based on closing prices as of 8/31/2021.
Project Jaguar JAGUAR VALUATION Overview of the Company s Top 20 Shareholders Ownership is Diverse and Primarily Large-Cap Institutional Asset Managers Goldman Stanley 12
Project Jaguar JAGUAR VALUATION Valuation Conclusions A 30 50% Premium ($170 $200) is Possible with the Right Process Jaguar Could Maximize Shareholder Value via a Broad Process Including Tier 1 and Tier 2 Partners Goldman Stanley 13
Section 2 Review of Jaguar Management Forecasts Goldman Stanley 14
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS Overview of Jaguar s Product Pipeline Approval Statuses Based on Latest Investor Presentation(1) Included in Valuation Product Pre-Clinical Phase 1 Phase 2 Phase 3 Approved JZP-458 (Rylaze) FDA Approval on June 30, 2021 Zepzelca (1L SCLC) Phase 3 Trial Planned Vyxeos (AML or HR-MDS) Cooperative Group Study Planned Epidiolex (EMAS) Phase 3 Trial Planned JZP-385 (Tremor) Phase 3 Trial Planned JZP-150 (PTSD) Phase 3 Trial Planned JZP-324 (Oxybate) JZP-341 (Hematological) Oncology Cannabinoids Neuroscience Goldman Stanley 15 1) Source: Management.
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS Preliminary Management Assumptions Summary of Key Product Assumptions in Management Case(1) ($ as Stated Except Peak Sales Estimates in $ Billions or $ Millions) Product: Xyrem Xywav Epidiolex Rylaze Sunosi Zepzelca JZP-385 JZP-150 Patient Population: 165K 175K 165K 175K ~6K new cases / year 165K 175K 25K 30K new / year 95K 100K ~7 million ~2 million Peak Penetration Rate: 6.3% (FY 21) 6.5% (FY 25) 55% (FY 27) 10% (FY 24) 25% (FY 25) 40% (FY 25) 8% (FY 27) 35% (FY 28) Generics Entrance: FY 25 FY 28 N/A N/A N/A N/A N/A N/A Average Price per Patient: $130K $160K $110K $125K $35K $55K $55K $67K $400K+ $8K $12K $1K $2K $1K $2K Pre-Generic Price Increases: ~6% ~2% ~5% ~1% ~9% ~2% ~3% ~3% Peak Sales (Projected): $245 million $509 million $687 million $796 million $993 million $1.4 billion $1.3 billion $2.5 billion Goldman Stanley 16 (1) Per management estimates from 8/3 meeting.
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS Summary of Operational Forecasts Per Jaguar Management; See Appendix A for Additional Details Comparison of Product Peak Sales and Operational KPIs Management Forecast(1) Consensus Forecast(2) Downside Case(3) $1.3 billion in FY 25 $1.0 billion in FY 25 $0.7 billion in FY 25 Xywav Peak Sales $2.5 billion in FY 27 $1.8 billion in FY 27 $1.3 billion in FY 27 Epidiolex Peak Sales $0.7 billion in FY 25 $0.5 billion in FY 25 $0.3 billion in FY 25 Zepzelca Peak Sales Risk-Adjusted Pipeline Peak Sales $0.5 billion in FY 30 $0.3 billion in FY 30 $0.2 billion in FY 30 FY 30 Revenue (CAGR) $4.6 billion (7%) $3.8 billion (5%) $3.1 billion (3%) 44% falling to 39% 44% falling to 39% 44% falling to 39% EBITDA Margins (1) Per management estimates from 8/3 meeting. (2) Based on Capital IQ median forecasts as of 8/31/2022. (3) Based on low end of market size and share estimates from press releases. Goldman Stanley 17
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS Revenue Projections Comparison of 10-Year Revenue Forecasts Peak Sales by Product: Includes Risk-Adjusted Revenue from Pipeline Drugs (JZP-385 and JZP-150) Goldman Stanley 18
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS EBITDA Projections Comparison of 10-Year EBITDA Forecasts Key Assumptions: Includes Risk-Adjusted EBITDA from Pipeline Drugs (JZP-385 and JZP-150) Goldman Stanley 19
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS Historical and Projected Net Sales by Product Management Case Forecasts(1) (Pipeline Drug Sales Have Been Probability-Adjusted) Goldman Stanley 20
Project Jaguar REVIEW OF JAGUAR MANAGEMENT FORECASTS Jaguar Forecast Summary Net Sales by Product (Risk-Adjusted Pipeline Sales) Peak Sales Assumptions: Goldman Stanley 21
Project Jaguar Table of Contents Section 1 Market Update and Summary 3 Section 2 Review of Jaguar Management Forecasts 7 Section 3 Jaguar Valuation 15 Section 4 Potential Strategic Alternatives 28 Section 5 Process Recommendations 39 Appendix A Financial Projection Assumptions 44 Appendix B Valuation Data 48 Goldman Stanley 22
Section 5 Process Recommendations Goldman Stanley 23
Project Jaguar PROCESS RECOMMENDATIONS Key Recommendations Comparison of Targeted and Broad Processes We recommend engaging in targeted discussions with the Tier 1 candidates At the same time, Goldman Stanley will reach out to Tier 2 candidates The M&A process with Tier 1 candidates will take significantly longer, so we recommend parallel processes Depending on the responses from Tier 1 and Tier 2 candidates, Goldman Stanley and Jaguar may approach additional partners Goldman Stanley 24
Project Jaguar PROCESS RECOMMENDATIONS Process Alternatives Comparison of Alternatives and Recommended Hybrid Process Goldman Stanley 25
Project Jaguar PROCESS RECOMMENDATIONS Process Roles and Responsibilities Overview of Phases, Workflow, and Estimated Timing Goldman Stanley 26
Project Jaguar PROCESS RECOMMENDATIONS Illustrative Process Timeline A Targeted Process + Broader Search Could Be Completed in ~6 Months Goldman Stanley 27
Section 1 Market Update and Summary Goldman Stanley 28
Project Jaguar MARKET UPDATE AND SUMMARY Executive Summary Jaguar Could Achieve a Positive Outcome for Shareholders with the Right Process Current Valuation Jaguar is Significantly Undervalued at Its Current Share Price Over the past year, Jaguar s share price has ranged between $131.51 and $186.42, recently falling by 25% after its Q2 earnings announcement The Comparable Public Companies, Precedent Transactions, and a Discounted Cash Flow (DCF) analysis based on management numbers point to a company undervalued by at least 30% Strategic Alternatives Equity / Debt Issuances and Add-On Acquisitions Are Not Ideal Jaguar s Debt / Total Capital is nearly 50% following the GW Pharma acquisition, and issuing Equity near the 52-week-low share price would create significant dilution Given Jaguar s Cash balance and the constraints above, smaller deals may be viable, but nothing that would substantially change the company s short-term valuation Proposed Process A 30 50% Premium ($170 $200) is Possible with the Right Process Jaguar s promising portfolio and market position could allow it to achieve a significantly higher valuation in an acquisition and acquire more resources for R&D and distribution We recommend a highly targeted process focused on the most likely ( Tier 1 ) potential partners, along with an outreach to Tier 2 potential partners Goldman Stanley 29
Project Jaguar MARKET UPDATE AND SUMMARY Biopharma Market Environment Last Twelve Months Performance Summary Statistics: Share Price Performance (Last Twelve Months; Rebased to 100%) Goldman Stanley 30
Project Jaguar MARKET UPDATE AND SUMMARY Jaguar Annotated Stock Price Performance Last Twelve Months Performance Jaguar Market Statistics: Share Price Performance and Volume Traded Goldman Stanley 31
Section 4 Potential Strategic Alternatives Goldman Stanley 32
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Potential Alternatives for Jaguar Both Standalone and Strategic Options Should Be Considered Multiple potential paths forward exist for Jaguar Many paths are not mutually exclusive (i.e., the company could pursue several at the same time) Given current market conditions and the company s capital structure, M&A options are more likely to maximize shareholder value Goldman Stanley 33
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Assessment of Standalone / Strategic Alternatives Key Considerations Should Be Process Speed, Valuation, and Market Conditions Goldman Stanley 34
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Criteria for Potential Strategic Partners Goldman Stanley Considered a Broad Range of Potential Biopharma Partners Size, Ability to Pay, Product Pipeline, and Strategic Fit Should All Be Considered At $200 / share, Jaguar would be worth an Enterprise Value of over $18 billion; potential partners should be able to use $18 billion in combined Cash and Debt to fund a potential deal Key Criteria Both branded and generics companies should be considered, given recent M&A activity Tier 1 Potential Partners Tier 2 Potential Partners Significantly larger than Jaguar Closer to Jaguar s size Market Cap Capable of paying at least $18- 20 billion in Cash and Debt May have to issue Stock to fund the full purchase price Ability to Pay Solid product and pipeline fit Solid product and pipeline fit Strategic Fit Goldman Stanley 35
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Tier 1 and Tier 2 Potential Strategic Partners Summary of Partners by Viability and Geography Goldman Stanley 36
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Overview of Tier 1 Potential Partners Goldman Stanley Conducted an Initial Evaluation of Each Partner ($ USD in Billions) Goldman Stanley 37
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Company Profile: Amgen ($ USD in Billions) Business Description Management Team Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. Robert Bradway Peter Griffith Esteban Santos Linda Louie Mike Zahigian Jonathan Graham Nancy Grygiel Chairmen & CEO EVP & CFO EVP, Operations VP, Finance & CAO SVP & CIO EVP & GC SVP & CCO Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels. Amgen Headquarters: Employees: Founded: California 24,200 1980 Financial Information(1) Business Segments and Product Lines Notable Acquisitions Market Cap: Enterprise Value: LTM Revenue: LTM EBITDA: TEV / Revenue: TEV / EBITDA: $128.1 $152.8 $25.5 $12.6 6.0x 12.2x Enbrel To treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis. Neulasta Reduces the chance of infection due a low white blood cell count in patients with cancer. Prolia To treat postmenopausal women with osteoporosis. Xgeva To prevent skeletal-related events. Otezla To treat adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Beh et s disease. Aranesp To treat a lower-than-normal number of red blood cells and anemia. KYPROLIS To treat patients with relapsed or refractory multiple myeloma. Repatha To reduce the risks of myocardial infarction, stroke, and coronary revascularization. Other Products Nplate, Vectibix, MVASI, Parsabiv, EPOGEN, KANJINTI, BLINCYTO, Aimovig, EVENITY, AMGEVITATM, Sensipar/Mimpara, NEUPOGEN, IMLYGIC, Corlanor, and AVSOLA. Otezla Worldwide Rights $13.4 billion Aug 2019 One-Year Price History(1) Onyx Pharmaceuticals $10.0 billion Aug 2013 Goldman Stanley 38 (1) Financial data as of August 31, 2021.
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Company Profile: Bristol-Myers Squibb ($ USD in Billions) Business Description Management Team Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide, including chemically- synthesized drugs, small molecules, and biologics. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and COVID-19. Giovanni Caforio, MD David Elkins Greg Meyers Paul von Autenried Christopher Boerner CEO EVP & CFO EVP & CTO EVP & CIO EVP & CCO Bristol-Myers Squibb Headquarters: Employees: Founded: New York 32,200 1887 It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies. The company was formerly known as Bristol- Myers Company. Financial Information(1) Business Segments and Product Lines Notable Acquisitions Market Cap: Enterprise Value: LTM Revenue: LTM EBITDA: TEV / Revenue: TEV / EBITDA: $148.6 $46.3 $44.4 $19.0 4.1x 9.5x Revlimid An oral immunomodulatory drug for the treatment of multiple myeloma. Eliquis An oral inhibitor for reduction in risk of stroke/systemic embolism in NVAF, and for the treatment of DVT/PE. Opdivo Anti-cancer indications. Pomalyst/Imnovid For patients with multiple myeloma. Orencia For adult patients with active RA and psoriatic arthritis. Sprycel For the treatment of Philadelphia chromosome-positive chronic myeloid leukemia. Yervoy For patients with unresectable or metastatic melanoma. Abraxane Protein-bound chemotherapy product. Reblozyl For anemia in adult patients with beta thalassemia. Empliciti For the treatment of multiple myeloma. Other Products Zeposia, Breyanzi, Inrebic, and Onureg. MyoKardia $13.1 billion Oct 2020 One-Year Price History(1) Celgene $99.6 billion Jan 2019 Goldman Stanley 39 (1) Financial data as of August 31, 2021.
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Company Profile: Gilead Sciences ($ USD in Billions) Business Description Management Team Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. It offers treatments for HIV/AIDS, liver diseases, certain cancers, and cardiovascular diseases, and it offers products for hematology, oncology, and cell therapy patients. Daniel O Day Andrew Dickinson Stacey Ma Flavius Martin Johanna Mercier Merdad Parsey, MD, PhD Deborah Telman Chairman & CEO EVP & CFO EVP, Development EVP, Research Gilead Sciences CCO CMO Headquarters: Employees: Founded: California 14,400 1987 The company markets its products through its commercial teams and/or in conjunction with third-party distributors and corporate partners. EVP & GC Financial Information(1) Business Segments and Product Lines Notable Acquisitions Market Cap: Enterprise Value: LTM Revenue: LTM EBITDA: TEV / Revenue: TEV / EBITDA: $91.3 $114.6 $26.6 $14.3 4.3x 8.0x HIV/AIDS Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla. COVID-19 Veklury (an injection for intravenous use). Liver Diseases Epclusa, Harvoni, Vosevi, Vemlidy, and Viread. Hematology, Oncology, and Cell Therapy Patients Epclusa, Harvoni, Vosevi, Vemlidy, and Viread. Pulmonary Arterial Hypertension Letairis (oral formulation for treatment). Chronic Angina Ranexa (oral formulation for treatment). Invasive Fungal Infections AmBisome (liposomal formation for treatment). Immunomedics $20.9 billion Sep 2020 One-Year Price History(1) Kite Pharma $11.3 billion Aug 2017 Goldman Stanley 40 (1) Financial data as of August 31, 2021.
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Company Profile: Merck & Co. ($ USD in Billions) Business Description Management Team Merck & Co., Inc. operates as a healthcare company worldwide. It operates through two segments, Pharmaceutical and Animal Health, and offers products in areas such as oncology, immunology, neuroscience, virology, cardiovascular, pharmaceuticals, and vaccines. Robert Davis Caroline Litchfield Sanat Chattopadhyay Richard DeLuca Dean Li, MD, PhD Cristal Downing Chirfi Guindo President & CEO CFO EVP, Manufact. EVP, Animal Health EVP, Research EVP & CCO Merck & Co. It serves drug wholesalers and retailers, hospitals, government agencies, managed health care providers (including health maintenance organizations), pharmacy benefit managers, physicians and physician distributors, veterinarians, and animal producers. Headquarters: Employees: Founded: New Jersey 67,500 CMO 1891 Financial Information(1) Business Segments and Product Lines Notable Acquisitions Market Cap: Enterprise Value: LTM Revenue: LTM EBITDA: TEV / Revenue: TEV / EBITDA: $193.1 $211.1 $43.9 $15.4 4.8x 13.7x Keytruda Anti-PD-1 monotherapy for the treatment of cervical cancer, classic Hodgkin Lymphoma, and related melanomas and carcinomas, including non-small-cell lung cancer (NSCLC). Gardasil/Gardasil 9 Vaccines to help prevent certain diseases caused by certain types of human papillomavirus. Januvia/Janumet For the treatment of Type 2 diabetes. ProQuad/M-M-R II/Variva Pediatric combination of the measles, mumps, rubella, and varicella vaccines (and related viruses). Bridion Injection for the reversal of two types of neuromuscular blocking agents used during surgery. Livestock (Animal Health) Various antibiotics and anti-inflammatory drugs for use in cattle and swine. Companion Animals (Animal Health) Various oral and topical parasitic control products for dogs and cats. VelosBio $2.6 billion Nov 2020 One-Year Price History(1) Cubist Pharmaceuticals $10.2 billion Dec 2014 Goldman Stanley 41 (1) Financial data as of August 31, 2021.
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Company Profile: Pfizer ($ USD in Billions) Business Description Management Team Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in therapeutic areas, including cardiovascular metabolic and women s health, small molecules, injectable and anti-infective medicines, and chronic immune and inflammatory diseases. Dr. Albert Bourla David Denton Mikael Dolsten Lidia Fonseca Angela Hwang Rady Johnson Douglas Lankler Chairman & CEO EVP & CFO President, R&D EVP & CTO President, Biopharma EVP & CCO Pfizer Headquarters: Employees: Founded: New York 79,000 1849 The company serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as disease control and prevention centers. EVP & GC Financial Information(1) Business Segments and Product Lines Notable Acquisitions Market Cap: Enterprise Value: LTM Revenue: LTM EBITDA: TEV / Revenue: TEV / EBITDA: $258.3 $276.1 $55.1 $19.6 5.0x 14.1x Biopharmaceuticals Comirnaty (COVID-19), Prevnar (pneumococcal disease), and Nimenrix (meningococcal ACWY disease). Oncology Ibrance (metastatic breast cancer), Xtandi (mCRPC, nmCRPC, and mCSPC), Inlyta (advanced RCC), and Sutent (advanced or metastatic RCC). Internal Medicine Eliquis (atrial fibrillation, thrombosis, and pulmonary embolism) and Premarin (menopause). Hospital Sulperazon (bacterial infections), Medrol (anti-inflammatory), and Zavicefta (bacterial infections). Inflammation & Immunology Xeljanz (RA, PsA, UC, and active polyarticular course juvenile idiopathic arthritis) and Enbrel (RA, juvenile idiopathic arthritis, PsA, and plaque psoriasis). Rare Disease Vyndaqel/Vyndamax (ATTR-cardiomyopathy and polyneuropathy), BeneFIX (hemophilia B), and Genotropin (human growth hormone replacement). Array BioPharma $11.5 billion Jun 2019 One-Year Price History(1) Medivation $14.3 billion Aug 2016 Goldman Stanley 42 (1) Financial data as of August 31, 2021.
Project Jaguar POTENTIAL STRATEGIC ALTERNATIVES Company Profile: Roche ($ USD in Billions) Business Description Management Team Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Europe and internationally. The company offers pharmaceutical products for treating oncology, neuroscience, infectious, immunology, cardiovascular and metabolism, ophthalmology, and respiratory, as well as anemia, cancer, dermatology, hemophilia, inflammatory and autoimmune, neurological, and transplantation. Dr. Severin Schwain Dr. Alan Hippe Bill Anderson Dr. Thomas Schinecker Dr. James Sabry Prof. Dr. Hans Clevers Claudia Bockstiegel Chairman & CEO CFO & CIO CEO, Pharmaceuticals CEO, Diagn. Head of Partnerships Roche R&D Head Headquarters: Employees: Founded: Switzerland 100,920 GC It also offers in-vitro tests for various diseases, such as cancer, diabetes, COVID- 19, hepatitis, and human papillomavirus. 1896 Financial Information(1) Business Segments and Product Lines Notable Acquisitions Market Cap: Enterprise Value: LTM Revenue: LTM EBITDA: TEV / Revenue: TEV / EBITDA: $314.3 $328.4 $63.3 $25.2 5.2x 13.0x Ocrevus (Neuroscience) Infusion treatment for relapsing and primary progression forms of multiple sclerosis. Perjeta (Oncology) Treatment for HER2-positive breast cancer. Actemra/RoActemra (Immunology) Treatment for moderate-to-severe rheumatoid arthritis and related arthritis diseases. Tecentriq (Oncology) Cancer immunotherapy (alone or in combination) for various types of cancer, such as lung, bladder, breast and liver cancer. Avastin (Oncology) Tumor-starving therapy designed to work with chemotherapy to prevent tumor growth. Hemlibra (Hemophilia) Prophylactic treatment for hemophilia A with and without factor VIII inhibitors. Herceptin (Oncology) Treatment for early-stage HER2-positive breast cancer, stomach cancer, and esophageal cancer. Kadcyla (Oncology) Newer treatment for HER2-positive breast cancer. Spark Therapeutics $4.9 billion Feb 2019 One-Year Price History(1) Intermune $8.9 billion Aug 2014 Goldman Stanley 43 (1) Financial data as of August 31, 2021.
Appendix B Valuation Data Goldman Stanley 44
Project Jaguar VALUATION DATA Comparable Public Companies U.S.-Based Specialty Pharma Companies with LTM Revenue Between $1 and $5 Billion ($ USD in Millions) Goldman Stanley 45
Project Jaguar VALUATION DATA Precedent Transactions U.S.-Based Bio/Pharma Sellers with LTM Revenue Above $500 Million Since 8/31/2011 ($ USD in Millions) Goldman Stanley 46
Project Jaguar VALUATION DATA Weighted Average Cost of Capital (WACC) U.S.-Based Specialty Pharma Companies with LTM Revenue Between $1 and $5 Billion ($ USD in Millions) Goldman Stanley 47
Appendix A Financial Projection Assumptions Goldman Stanley 48
Project Jaguar FINANCIAL PROJECTION ASSUMPTIONS Summary of Revenue Forecasts by Scenario Comparison of Management, Consensus, and Downside Cases(1) ($ USD in Millions) Goldman Stanley 49
Project Jaguar FINANCIAL PROJECTION ASSUMPTIONS Xyrem and Xywav Revenue Forecasts Comparison of Management, Consensus, and Downside Cases(1) ($ USD in Millions) Goldman Stanley 50
