Innovative Mid-Cap Biotechnology Benchmark Report Financial Benchmarking, Pipeline Assessment & Competitive Analysis of Innovative Biotechs
GDHC001SAC / Published January 2013
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 2 GDHC001SAC / Published JAN 2013
The increase in biotech revenues will not translate into positive margins for some time
The combined peer group revenue for these 15
innovative biotech companies was $2.0 billion in 3Q12, a
31.8% increase from the $1.5 billion the same companies
posted in the year-ago quarter. GlobalData attributes the
majority of the increase to the surge in revenue from
Regeneron’s [REGN] commercialization strategy for its
injectable wet AMD drug Eylea (aflibercept) which helped
to drive the company’s revenue by 315.9% to $427.7m in
the third quarter. Regeneron is continuing its worldwide
roll-out of Eylea, snagging approvals in Japan, Brazil,
and Europe. Regeneron has partnered with Santen
Pharmaceutical and Bayer Yakuhin to aid in driving
adoption and penetration in the Japanese ophthalmology
market, a significant opportunity for Regeneron as wet
AMD is the fourth most-common cause of acquired
blindness, with 1.2% residents over the age of 50 having
wet AMD in at least one eye. (Source: GlobalData;
Regeneron, press release, September 28, 2012).
Regeneron’s territory expansion drove Eylea sales by
26.0% on sequential basis to $244.4m in 3Q12. As a
result, the successful launch of Eylea has led to
Regeneron posting its first profitable full-year since the
company’s inception in 1988.
Below figure shows the combined peer group revenue
and average operating margin.
Combined Peer Group Revenue ($m) and Average Operating Margin, 3Q11–3Q12
$1,546.6 $1,744.6 $1,681.9
$1,913.9 $2,038.8
-33.7%
-19.3% -28.5%
-38.3%
-54.6%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
$0
$500
$1,000
$1,500
$2,000
$2,500
3Q11 4Q11 1Q12 2Q12 3Q12
Revenue Avg. Op Margin
Source: GlobalData & Company SEC filings Combined peer group revenue = $2.0bn
In addition to Regeneron’s growth, the total peer group
revenue for these 15 biotech companies was positively
impacted by the business combinations of both Jazz
[JAZZ] and Alexion [ALXN] following each of their
acquisitions. Jazz’s purchases of Azur Pharma and
EUSA grows the biotech’s footprint overseas to markets
in developed Europe and expands the company’s
product line to include higher-margin cancer therapies.
Meanwhile, Alexion added to its ultra-rare disease
portfolio with its acquisitions of Enobia and Orphatec,
both privately held clinical-stage biotechnology
companies with promising rare disease candidates.
Alexion’s ‘bolt-on’ acquisitions of these specialty players
in the orphan drug market led to Alexion posting record
revenue of $294.1m in the third quarter. These
transactions, combined with higher marketed drug sales
from Jazz and Alexion, contributed approximately $200m
to the total peer group’s revenue in 3Q12.
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 3 GDHC001SAC / Published JAN 2013
While the combined peer group revenue for these biotech
companies grew year-to-year, this came at a very high
opportunity cost for these companies. The combined
peer group operating expenses grew to $1.35 billion in
3Q12, a 26.0% increase from the $1.07 billion spent in
the same period last year. As a result, the 3Q12 average
peer group operating margin was negative at -54.6%, a
decline of 20.9 percentage points when compared to
3Q11. GlobalData believes the ever-increasing expense
of developing innovative medicines and bringing them to
market is the driving force behind the negative margin, as
many of these firms operate in the red until drugs are
approved and begin to generate sales to offset the profit
erosion.
Total op-ex spending will continue to grow, especially for commercialization efforts outside the US
R&D Expenses: Total peer group R&D expenses
increased 20.2% year-to-year, from $621.1m in 3Q11 to
$746.8m in 3Q12. GlobalData attributes the rise in R&D
expenses to the heavy investment these biotech
companies have made to advance their drug candidates
through their respective clinics. At the time this report
was written, there were 24 candidates in Phase III trials
across these biotech companies, accounting for 29.3% of
all entities under development. ViroPharma [VPHM] was
the expense management leader in 3Q12 due to a 27.9%
decrease in R&D spending when compared to the year-
ago quarter. However, GlobalData attributes the decline
to the FDA’s suspension of two of the companies’ clinical
trial studies evaluating Cinryze (C1 esterase inhibitor)
over safety concerns and not due to any cost-cutting
measures.
Below figure depicts the combined peer group R&D and
S,G&A spending.
Combined Peer Group R&D and S,G&A Spend ($m), 3Q11–3Q12
$621.1 $654.8 $673.4
$715.0 $746.8
$447.0
$545.4 $550.0 $579.2 $599.5
$-
$100
$200
$300
$400
$500
$600
$700
$800
3Q11 4Q11 1Q12 2Q12 3Q12
R&D S,G&A
Source: GlobalData & Company SEC filings
S,G&A Expenses: Total peer group S,G&A spending
grew by 34.1% year-on-year, from $447.0m in 3Q11 to
$599.5m in 3Q12. GlobalData attributes the increase in
S,G&A-related expenses to these biotech companies
ramping up headcount and marketing spend to drive the
sales efforts for their recently approved drugs. The rise in
S,G&A spending was also attributed to M&A-related
activities and to these biotech companies expanding their
footprints to markets outside the US in search of new
opportunities to grow revenue.
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 4 GDHC001SAC / Published JAN 2013
Below figure displays the combined peer group total op-
ex spending.
Combined Peer Group Total Op-Ex Spending ($m), 3Q11–3Q12
$1,068.2 $1,200.1 $1,223.4
$1,294.2 $1,346.3
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
3Q11 4Q11 1Q12 2Q12 3Q12
Total Op-Ex
Source: GlobalData & Company SEC filings Combined peer group op-ex spend = $1.3bn
Resource Management: GlobalData believes the
landscape for investing capital to expand plants and
operations is becoming increasingly clearer for these
biotech companies. With revenues beginning to come
online in a more predictable fashion, we expect these
biotech companies will increase their investments in
physical, human, and financial resources to position
themselves competitively moving forward. These biotech
companies are using a variety of strategies in how they
allocate their financial capital, including paying down
outstanding debt and buying back their stock to reinvest
funds back into their clinical projects.
Despite its high cost, oncology franchise will continue to experience increased R&D investment
Across the pipelines of these 15 innovative biotech
companies, four therapy areas accounted for nearly 75%
of all the drugs in clinical development and were as
follows: oncology 28.9%, CNS 19.3%, immunology
15.7%, and metabolic disorders 10.8%. Clearly, the high
cost of developing cancer drugs, along with associated
recruitment hurdles in designing oncology clinical trials
has not impeded R&D spending in this franchise, despite
the limited financial resources of some of these biotech
companies. For instance, San Francisco-based Exelixis
[EXEL] spent $30.7m in R&D in the third quarter of 2012,
almost a three-fold increase above the company’s
revenue for the quarter. In July 2012, Exelixis reported
that the FDA had accepted the company’s New Drug
Application (NDA) evaluating its lead candidate,
cabozantinib, as a treatment for patients with metastatic
Medullary Thyroid Cancer (MTC). This NDA filing was
based on the company releasing the results from its
Phase III EXAM trial that cabozantinib met the primary
endpoint of significantly improving progression-free
survival in patients suffering from MTC when compared
to placebo. GlobalData expects Exelixis’ R&D expenses
will continue to rise in the future, as the company is
concurrently evaluating cabozantinib across a number of
oncology indications, which will lead to its R&D expenses
continuing to outpace its revenue.
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 5 GDHC001SAC / Published JAN 2013
Below figure displays the percentage of drug candidates
by therapeutic area.
Percentage of Drug Candidates by Therapeutic Area, 3Q12
10.8%
15.7%
19.3%
28.9%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
Metabolic
Immunology
CNS
Oncology
Percentage by Therapy Area
Source: GlobalData, Pharma eTrack, [Accessed on: December 12, 2012]; Company Data
Momenta [MNTA] is another example of a small biotech
company investing in oncology despite having a
dwindling revenue base to draw from. In 3Q12 Momenta
initiated dosing phase for clinical candidate M-402, the
company’s novel heparin sulfate proteoglycan for treating
metastatic pancreatic cancer. M-402 has the ability to
bind to multiple growth factors to inhibit tumor
angiogenesis and metastasis with reduced anticoagulant
activity, making the drug attractive for being used across
a broad range of cancers. Momenta anticipates that M-
402 will be administered in combination with gemcitabine,
a first-line standard of care chemotherapy. A pre-clinical
study with the Cancer Research Institute showed that M-
402, in combination with gemcitabine, significantly
improved survival and substantially lowered the incidence
of metastasis compared with groups being treated with
gemcitabine alone.
Incyte [INCY] made a splash in the third quarter,
receiving approval by the European Commission for
Jakavi (ruxolitinib), a selective Janus-Associated Kinase
(JAK) 1 and 2 inhibitor, the first and only JAK inhibitor
approved for myelofibrosis, a rare form of leukemia
associated with an enlarged spleen. Ruxolitinib received
orphan drug status and was approved by the FDA back
in 2011 under the brand name Jakafi. Approval by the
European Commission was based on the results of two
pivotal Phase III COMFORT trials, which demonstrated a
reduction in spleen volume and an improved quality of life
in patients who were taking Jakavi through 48 weeks
when compared to best available therapy. GlobalData
believes that with the combination of its first-in-class
status and its oral administration, Jakavi will capture a
significant share of the myelofibrosis market.
Big Pharma’s exit from CNS franchise creates a gap to be filled by smaller biotechs
The CNS franchise has a history of failed clinical
programs, pulled R&D investment and regulatory hurdles,
which has led many large drug makers to exit the space.
We expect this has created an opening for smaller
players looking to establish their drug portfolios as next-
in-line therapies for treating disorders such as
schizophrenia, depression, epilepsy, and chronic pain. At
the time this report was written, the CNS franchise
accounted for 19.3% of drug candidates across all the
pipelines of these innovative biotech companies, with six
CNS candidates in Phase III, including two dopamine
antagonists in the clinic of Alkermes [ALKS] for the
treatment of schizophrenia. In June 2012, Alkermes and
its marketing partner Janssen Pharmaceuticals, NV,
initiated Phase III of its clinical program investigating a
three-month formulation of Invega Sustenna
(paliperidone palmitate), an injectable therapy for the
treatment of schizophrenia.
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 6 GDHC001SAC / Published JAN 2013
Back in 2011, Invega Sustenna was approved as a once-
monthly injectable medication in the US and in the EU.
Two Phase III trials have been initiated by Alkermes –
one will explore the efficacy, safety and tolerability of the
three-month formulation against placebo, while the other
Phase III trial will compare both three-month and one-
month formulations against relapse prevention.
In September 2012, Nektar [NKTR] announced
encouraging data from its Phase Ia ascending dosage
trial of NKTR-192 candidate for the treatment of
moderate-severe acute pain. NKTR-192 is the company’s
novel rapid onset, short half-life mu opioid analgesic,
which behaves differently than other opioids. Data from
the Phase Ia trial demonstrated that NKTR-192
preserves the relief of pain, but reduces the feeling of
euphoria by changing the way the drug targets receptors
and permeates the blood-brain barrier. By manipulating
this mechanism, NKTR-192 is able to achieve the same
desired pharmacokinetic results as with other opioids,
while at the same time limiting the potential for abuse and
dependency and other unwelcome side-effects like
sedation. Source: GlobalData; Nektar, press release,
Sept. 18, 2012.
Even though Alkermes and Nektar have chosen to
develop CNS drugs internally, Acorda [ACOR] looked to
bolster its CNS portfolio through acquisition. Acorda
currently markets Ampyra (dalfampridine) to improve
walking ability in people with multiple sclerosis. In
February 2012, Acorda acquired Neuronex, a privately-
held development stage biotech, for $10m upfront with
additional contingency payments totaling up to $125m if
specified regulatory and manufacturing milestones are
achieved with respect to a nasal spray formulation of
diazepam (Valium).
Diazepam is an oral benzodiazepine derivative for
treating anxiety disorders, muscle spasms and symptoms
of withdrawal associated with alcohol dependency.
Neuronex was developing a nasal spray formulation of
diazepam as a rescue treatment for certain seizures, but
will now fold-in to Acorda’s development projects.
The rise in generic competition will cause biotechs to reevaluate their product strategies
Looking over the past 12 months, the branded
biopharmaceutical industry has begun to experience the
mercilessness of the ‘patent cliff’. The increasing number
of patent expires on blockbuster drugs (e.g.. Lipitor) has
created an opportunity for cheaper generic alternatives to
flood the market leading to a decrease in revenues on an
industrywide basis. The influx of generic drugs, combined
with pricing pressures from customers, healthcare reform
legislation, and fiscal austerity measures, have all
compressed corporate margins, leaving drug makers with
little choice but to implement rationalization programs to
remain profitable. The biotech companies evaluated in
this report are not immune to these challenges,
especially the negative effect resulting from generic
competition. In 3Q12, Momenta [MNTA] saw its revenue
decline by 94.2% year-to-year to $5.1m in the third
quarter as a result of an introduction of the first
unauthorized generic version of Lovenox (enoxaparin
sodium) being marketed by Amphastar and Watson
Pharmaceuticals. After a couple of years of court battles,
in January 2012, the US Court of Appeals for the Federal
Circuit denied Momenta’s preliminary injunction to keep
Watson and Amphastar from selling their enoxaparin
sodium product in the US market.
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 7 GDHC001SAC / Published JAN 2013
Another company that witnessed significant revenue
erosion as a result of a competing generic product was
ViroPharma [VPHM]. The company’s revenue in the third
quarter decreased 36.3% year-to-year to $91.0m. This
revenue shortfall was the direct result of the impact of
generic oral vancomycin entries into the market. The
FDA indicated to ViroPharma that it had approved three
Abbreviated New Drug Applications (ANDAs) for generic
vancomycin capsules, and in June 2012, the FDA
approved a fourth ANDA from Watson. The influx of
these cheaper generic alternatives drove ViroPharma’s
branded Vancocin (vancomycin) sales lower by 77.0% to
$3.6m in 3Q12. The loss in top-line sales also put
pressure on the company’s operating margin, squeezing
it to -4.6% of total revenue, the first negative operating
margin for ViroPharma in over two years.
In February 2012, Cubist [CBST] received a Paragraph
IV letter from Hospira, notifying Cubist that it has
submitted an ANDA to the FDA seeking approval to
market a generic version of its MRSA–fighting drug
Cubicin (daptomycin) prior to the drug’s expiration in the
US in June 2016. Following the notice letter, on March
21, 2012, Cubist filed a patent infringement lawsuit
against Hospira in response to its ANDA filing with the
FDA. By statute, the FDA is automatically prohibited from
approving Hospira’s ANDA for 30 months unless the
court enters a judgment finding the patents are invalid
before the expiration of the 30-month period. As a result
of Cubist’s over-reliance on Cubicin for nearly all of its
revenue, GlobalData believes if an adverse outcome
were to occur as a result of this litigation, the influx of a
much cheaper generic alternative would evaporate nearly
all sales of Cubicin and negatively impact Cubist’s
financial position.
However, there is hope. These biotech companies, much
like their larger pharmaceutical brethren, are adapting to
this generic competition by putting in place strategies to
extend the life-cycles of their drugs. This includes label
expansions to include additional indications and attempts
to extend their currently approved usage to include
alternative methods of administration. GlobalData
believes both approaches allow these companies to grow
mind share and market share for their therapies, while at
the same time gain the much-needed IP protection to
weather this storm, at least for now.
Life-cycle expansion will be key to growing future revenues and defending asset IP
The high cost of developing innovative therapies coupled
with an increasingly competitive landscape has caused
drug makers, large and small, to evaluate their product
life-cycle strategies more carefully. This is especially true
for these innovative biotech companies, given that their
financial futures are largely tied to only a few marketed
products, many of which never reach blockbuster status.
With limited resources, the challenge of maintaining a
competitive advantage while returning value to
shareholders becomes incredibly burdensome for these
biotechs, causing them to squeeze as much potential as
possible out of every dollar invested. This is evident by
these companies’ implementing a number of strategies to
extend or expand the life-cycles of their drugs. These
approaches can take many forms, but the guiding
principle is the same – gain multiple approvals across as
many indications as possible – this not only grows
product sales by expanding the potential treatment
population, but also provides additional patent protection
safeguarding the company against future generic entry.
Executive Summary
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 8 GDHC001SAC / Published JAN 2013
Onyx [ONXX] is one example of a company that is
attempting to extend the life-cycle of its products. In July,
the company received accelerated approval by the FDA
for Kyprolis (carfilzomib injection), a proteasome inhibitor
indicated for the treatment of patients with multiple
myeloma who have received at least two prior therapies.
Post-approval, Onyx is wasting no time with Kyprolis,
currently examining the drug in several clinical trials
either as a single-agent therapy or in combination with
other drugs. Onyx has completed enrollment in a global
Phase III clinical trial, ASPIRE, evaluating lenalidomide
(marketed as Revlimid by Celgene) and bortezomib
(marketed as Velcade by Millennium), and low-dose
dexamethasone with or without Kyprolis in patents with
relapsed and refractory multiple myeloma who have
received up to three prior therapies.
In 3Q12, Acorda [ACOR] announced positive top-line
results from its post-marketing study evaluating 5mg
dose of Ampyra (dalfampridine-ER) to progress walking
ability in people with multiple sclerosis. Currently, Acorda
is separately evaluating Ampyra to expand its label to
include improving walking ability in patients suffering from
post-stroke deficits and cerebral palsy.
Meanwhile, on December 4, 2012, Jazz [JAZZ]
announced the issuance of a new patent for Xyrem
(sodium oxybate) oral solution. The new formulation
patent is entitled “Microbiologically Sound and Stable
Solutions of Gamma-Hydroxybutyrate Salt for the
Treatment of Narcolepsy.” The new patent will expire in
December 2019, and is the ninth patent referencing
Xyrem to be listed in the Orange Book. Xyrem is the only
product approved by the FDA for the treatment of both
cataplexy and excessive daytime sleepiness in patients
with narcolepsy.
GlobalData believes a company’s ability to implement
effective life-cycle management strategies is one of many
crucial factors in determining these companies’ financial
future.
While label expansions are common, they are not
guaranteed. In October, the FDA rejected United
Therapeutics’ [UTHR] application for an oral tablet
version of Remodulin (treprostinil) for the treatment of
Pulmonary Arterial Hypertension (PAH). The FDA
questioned whether the drug slowed the progression of
the life-threatening lung disease and the lack of a
statistically significant effect on the six-minute walking
test (6MWT) distance in two of its studies. The FDA’s
Complete Response Letter (CRL) stated that the design
for the clinical trials did not prove to the US regulator any
particular advantage over currently available
subcutaneous delivery. The FDA’s rejection is certainly a
setback for United, an obstacle the company states could
take nearly three years to overcome. GlobalData believes
United will continue to seek approval for an oral version
of treprostinil, which we expect would significantly
expand the market potential for Remodulin, as there are
no currently approved oral prostacyclins available to PAH
patients in the US or in the EU.
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 9 GDHC001SAC / Published JAN 2013
1 Table of Contents
1 Table of Contents ............................................................................................................... 9
1.1 List of Tables ............................................................................................................. 15
1.2 List of Figures ........................................................................................................... 16
2 Introduction ....................................................................................................................... 18
2.1 Report Scope ............................................................................................................ 18
2.2 Report Catalysts ........................................................................................................ 20
2.3 Upcoming Related Reports ........................................................................................ 20
2.4 Recently Published Reports ...................................................................................... 21
2.5 GlobalData’s Benchmarking Methodology ................................................................. 21
2.6 GlobalData 3Q12 Biotech Benchmark Leader: Regeneron......................................... 22
2.7 Regeneron Overtook Alexion in 3Q12 as Benchmark Leader ..................................... 23
3 Financial Management ...................................................................................................... 25
3.1 Competitive Framework ............................................................................................. 25
3.2 Overview ................................................................................................................... 26
3.2.1 Biotech companies position themselves for revenue growth with higher sales,
but will need to focus on cost containment to improve profit margins .................. 26
3.3 Financial Management: Heat Map ............................................................................. 28
3.3.1 Regeneron was the financial management leader in 3Q12, posting significantly
higher scores across all metrics compared to its peer group ............................... 28
3.4 Financial Metrics ....................................................................................................... 29
3.4.1 Revenue ............................................................................................................. 29
3.4.2 Revenue Growth YtY .......................................................................................... 30
3.4.3 Operating Income ............................................................................................... 31
3.4.4 Operating Income Growth YtY ............................................................................. 32
3.4.5 Operating Margin ................................................................................................ 33
3.5 Expense Management: Heat Map.............................................................................. 34
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 10 GDHC001SAC / Published JAN 2013
3.5.1 ViroPharma was the expense management leader in 3Q12 due to
manufacturing issues ......................................................................................... 34
3.6 Expense Metrics ........................................................................................................ 35
3.6.1 R&D Expense as a Percentage of Revenue ........................................................ 35
3.6.2 R&D Spend Growth YtY ...................................................................................... 36
3.6.3 S,G&A Expenses as a Percentage of Revenue ................................................... 37
3.6.4 S,G&A Spend Growth YtY ................................................................................... 38
3.6.5 Total OpEx as a Percentage of Revenue ............................................................. 39
4 Pipeline Assessment......................................................................................................... 40
4.1 Overview ................................................................................................................... 40
4.1.1 Despite its high cost, biotech companies are still investing in oncology ................ 40
4.1.2 Big Pharma’s exit from CNS creates an opportunity for smaller players ............... 40
4.2 GlobalData Pipeline Matrix and Competitive Positioning ............................................ 42
4.2.1 Quadrant Analysis: Best-In-Class Assessment: Regeneron ................................. 44
4.2.2 Quadrant Analysis: Challengers Assessment: Jazz ............................................. 44
4.2.3 Quadrant Analysis: Laggards Assessment: Exelixis ............................................. 45
4.2.4 Quadrant Analysis: Innovators Assessment: Momenta ........................................ 45
4.3 Pipeline Development................................................................................................ 46
4.4 Clinical Highlights by Company ................................................................................. 48
4.4.1 Acorda ................................................................................................................ 48
4.4.2 Alexion ................................................................................................................ 49
4.4.3 Alkermes............................................................................................................. 49
4.4.4 BioMarin ............................................................................................................. 50
4.4.5 Cubist ................................................................................................................. 51
4.4.6 Exelixis ............................................................................................................... 52
4.4.7 Incyte .................................................................................................................. 53
4.4.8 Jazz .................................................................................................................... 54
4.4.9 Momenta............................................................................................................. 54
4.4.10 Nektar ................................................................................................................. 55
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 11 GDHC001SAC / Published JAN 2013
4.4.11 Onyx ................................................................................................................... 56
4.4.12 Regeneron .......................................................................................................... 57
4.4.13 Seattle ................................................................................................................ 59
4.4.14 United ................................................................................................................. 60
4.4.15 ViroPharma ......................................................................................................... 61
5 Licensing & Acquisition Strategies .................................................................................... 62
5.1 Competitive Framework ............................................................................................. 62
5.2 Overview ................................................................................................................... 63
5.3 M&A Analysis ............................................................................................................ 65
5.3.1 Alkermes Acquisition of Elan Drug Technology Creates Leadership in CNS
Therapeutics ...................................................................................................... 65
5.3.2 Jazz Acquisition of EUSA Pharma Expands its Product Line to Include High-
Margin Cancer Therapies ................................................................................... 66
5.3.3 Alexion Adds to its Ultra-Rare Disease Portfolio through Acquisition .................... 67
5.3.4 Jazz Purchase of Azur Complements its Pipeline in CNS and Women’s Health ... 68
6 Resource Management Strategies .................................................................................... 71
6.1 Competitive Framework ............................................................................................. 71
6.2 Overview ................................................................................................................... 72
6.3 Operations & Supply Chain ....................................................................................... 73
6.3.1 Acorda Relocates Corporate HQ to Ardsley Park Life Sciences Campus ............. 73
6.3.2 Cubist Expands Research & Development Facility .............................................. 73
6.3.3 Jazz Sells Women’s Health Business to Meda .................................................... 73
6.3.4 Nektar Consolidates Research Assets to its R&D Center in San Francisco, CA ... 74
6.3.5 Regeneron Expands Greenbush Plant to Support its Antibody Clinic ................... 74
6.3.6 ViroPharma Adds Manufacturing Scale to Cinryze Production to Meet Expected
Demand ............................................................................................................. 74
6.4 Resource Management: Heat Map ............................................................................ 75
6.4.1 Cubist was the resource management leader in 3Q12, balancing spending &
headcount with revenue growth.......................................................................... 75
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 12 GDHC001SAC / Published JAN 2013
6.5 Firm Utilization Metrics .............................................................................................. 76
6.5.1 Headcount Growth YtY........................................................................................ 76
6.5.2 Revenue per Employee ....................................................................................... 77
6.5.3 SG&A Expense per SG&A Employee .................................................................. 78
6.5.4 R&D Expense per R&D Employee....................................................................... 79
6.6 Human Capital Leadership Changes ......................................................................... 80
6.6.1 Successfully Implement Commercialization Strategies by Retaining Top Talent ... 80
6.7 Capital Management: Heat Map ................................................................................ 81
6.7.1 Momenta was the Capital Management Leader in 3Q12 Keeping its Operating
Leverage Lower Compared to its Peer Group..................................................... 81
6.8 Capital Structure Metrics ........................................................................................... 82
6.8.1 Debt/Asset Ratio ................................................................................................. 82
6.8.2 Quick Ratio ......................................................................................................... 83
6.8.3 Cash Ratio .......................................................................................................... 84
6.8.4 Return-on-Investment Ratio ................................................................................ 85
6.8.5 Sales/Assets Ratio .............................................................................................. 86
6.9 Share Offerings & Debt Restructurings ...................................................................... 87
6.9.1 Share Repurchases Increase Working Capital and Provide Cash Flow to
Reinvest Back into Internal R&D Programs ........................................................ 87
7 Company Drill-Downs & Forecasts .................................................................................... 88
7.1 Acorda SWOT & Forecast ......................................................................................... 88
7.1.1 With Revenue Flattening, Acorda Looks to Extend Ampyra Labeling to Include
Additional Indications and More Regions in the EU ............................................ 88
7.2 Alexion SWOT & Forecast ......................................................................................... 90
7.2.1 Alexion Supplements its Orphan Drug Strategy with Bolt-on Acquisitions ............ 90
7.3 Alkermes SWOT & Forecast ...................................................................................... 92
7.3.1 Alkermes is Well Positioned for Strong Revenue Generation as the Company
Focuses on Commercializing Internal CNS Drug Candidates ............................. 92
7.4 BioMarin SWOT & Forecast ...................................................................................... 94
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 13 GDHC001SAC / Published JAN 2013
7.4.1 BioMarin Will Treat PKU Patients Across Their Entire Lifespan with PEG-PAL
for Adults ........................................................................................................... 94
7.5 Cubist SWOT & Forecast .......................................................................................... 96
7.5.1 Revenue Growth Driven by Higher-than-Expected Sales of Cubicin – Cubist
Could Take Share from ViroPharma with CB-315 Drug Candidate ..................... 96
7.6 Exelixis SWOT & Forecast ........................................................................................ 98
7.6.1 Exelixis’ Revenue will Remain Flat Until it Maximizes the Commercial Potential
of Cabozantinib for Multiple Oncology Indications............................................... 98
7.7 Incyte SWOT & Forecast ......................................................................................... 100
7.7.1 First-in-Class Jakafi Will Capture a Significant Share of the Myelofibrosis
Market ............................................................................................................. 100
7.8 Jazz SWOT & Forecast ........................................................................................... 102
7.8.1 Jazz’s Revenue Grew through Bolt-on Acquisitions – Higher Margin Cancer
Therapies Complement Sales Growth of Xyrem ............................................... 102
7.9 Momenta SWOT & Forecast .................................................................................... 104
7.9.1 While Momenta is Feeling Pressure on its Top-Line, the Company is Poised to
Capitalize on Opportunities with Heparin Candidates and Biologics .................. 104
7.10 Nektar SWOT & Forecast ........................................................................................ 108
7.10.1 Nektar Will Continue to Invest Internally on Novel Cancer Therapies While Sub-
licensing its PEGylation Technology to Supplement Revenue Growth .............. 108
7.11 Onyx SWOT & Forecast .......................................................................................... 112
7.11.1 The Approval of Kyprolis Contributed to Organic Sales for Onyx; However, the
Company’s High Cost Structure Erodes any Profitability ................................... 112
7.12 Regeneron SWOT & Forecast ................................................................................. 115
7.12.1 Regeneron Posts its First Profitable Full-Year in History – Eylea Success
Continues to Drive Top-line Growth, Clinical Pipeline is Buzzing ...................... 115
7.13 Seattle SWOT & Revenue Forecast ........................................................................ 118
7.13.1 As Revenue Peaks, Seattle Expands Adcetris Availability to Outside the US,
and Gets Creative with Diagnostic Partnership ................................................. 118
7.14 United SWOT & Forecast ........................................................................................ 121
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 14 GDHC001SAC / Published JAN 2013
7.14.1 United Will Press Forward with a Plan to Develop an Oral Version of
Remodulin, as the PAH Landscape Becomes More Complex ........................... 121
7.15 ViroPharma SWOT & Forecast ................................................................................ 124
7.15.1 ViroPharma Experienced Significant Erosion from Generic Vancocin; the
Company will Now Have to Rely Entirely on Cinryze for Profitability ................. 124
7.16 GlobalData Forecast Summary ................................................................................ 127
7.16.1 GlobalData Forecasts vs. Company Reported 3Q12 Results ............................. 127
8 Appendix ........................................................................................................................ 129
8.1 Research Methodology ............................................................................................ 129
8.1.1 Coverage .......................................................................................................... 129
8.1.2 Secondary Research ......................................................................................... 129
8.1.3 Expert Panel Validation ..................................................................................... 130
8.2 About the Authors ................................................................................................... 131
8.2.1 Analysts ............................................................................................................ 131
8.3 Director, Healthcare Industry Dynamics ................................................................... 132
8.4 GlobalHead of Healthcare Research & Consulting ................................................... 132
8.5 About the Industry Dynamics Team ......................................................................... 133
8.6 GlobalData .............................................................................................................. 134
8.7 Contact Us .............................................................................................................. 134
8.8 Disclosure Information ............................................................................................. 134
8.9 Disclaimer ............................................................................................................... 135
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 15 GDHC001SAC / Published JAN 2013
1.1 List of Tables
Table 1: GlobalData Benchmark Rankings, 3Q12................................................................... 22
Table 2: GlobalData Benchmark Rankings, 2Q12 – 3Q12 ...................................................... 23
Table 3: Financial Management Composite Scores, 3Q12 ..................................................... 28
Table 4: Expense Management Composite Scores, 3Q12 ...................................................... 34
Table 5: Recent Merger & Acquisitions, 3Q11 - 3Q12............................................................. 69
Table 6: Recent Licensing Deals, 3Q11-3Q12 ........................................................................ 70
Table 7: Resource Management Composite Scores, 3Q12 .................................................... 75
Table 8: Key Leadership Changes, 1Q12 - 3Q12 ................................................................... 80
Table 9: Capital Management Composite Scores, 3Q12......................................................... 81
Table 10: Share Offerings & Debt Restructurings, 1Q12 - 3Q12 ............................................. 87
Table 11: GlobalData Forecasts vs. Company Report Results ($m), 3Q12 ........................... 127
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 16 GDHC001SAC / Published JAN 2013
1.2 List of Figures
Figure 1: Combined Peer Group Revenue ($m) and Average Operating Margin, 3Q11–3Q12 26
Figure 2: Average Percent Expense by Function, 3Q11–3Q12 ............................................... 27
Figure 3: Revenue ($m) by Company, 3Q12 .......................................................................... 29
Figure 4: Year-to-Year Revenue Growth by Company ............................................................ 30
Figure 5: Operating Income ($m) by Company, 3Q12............................................................. 31
Figure 6: Year-to-Year Operating Income Growth by Company .............................................. 32
Figure 7: Operating Margin by Company, 3Q12 ..................................................................... 33
Figure 8: R&D Expense as a Percentage of Revenue by Company, 3Q12 ............................. 35
Figure 9: Year-to-Year Growth in R&D Spending by Company, 3Q12 ..................................... 36
Figure 10: S,G&A Expense as a Percentage of Revenue by Company, 3Q12 ........................ 37
Figure 11: Year-to-Year Growth in S,G&A Spending by Company, 3Q12 ............................... 38
Figure 12: Total OpEx as a Percentage of Revenue by Company, 3Q12 ................................ 39
Figure 13: Percentage of Candidates by Therapy Area, Through 3Q12 .................................. 41
Figure 14: GlobalData Pipeline Matrix .................................................................................... 42
Figure 15: GlobalData Pipeline Matrix: Competitive Positioning .............................................. 43
Figure 16: Number of Clinical Candidates for Each Company by Clinical Phase, through 3Q12
............................................................................................................................... 46
Figure 17: Percentage of Candidates by Clinical Phase, through 3Q12 .................................. 47
Figure 18: Headcount Growth YtY by Company, 3Q12 ........................................................... 76
Figure 19: Revenue per Employee (In $ Thousands) by Company, 3Q12 ............................... 77
Figure 20: SG&A Expense per SG&A Employee (In $ Thousands) by Company, 3Q12 .......... 78
Figure 21: R&D Expense per R&D Employee (In $ Thousands) by Company, 3Q12 ............... 79
Figure 22: Debt to Asset Ratio by Company, 3Q12 ................................................................ 82
Figure 23: Quick Ratio by Company, 3Q12 ............................................................................ 83
Figure 24: Cash Ratio by Company, 3Q12 ............................................................................. 84
Figure 25: Return on Investment Ratio by Company, 3Q12 .................................................... 85
Figure 26: Sales to Assets Ratio by Company, 3Q12 ............................................................. 86
Figure 27: Acorda Six-Month Revenue Forecast ($m) ............................................................ 89
Table of Contents
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 17 GDHC001SAC / Published JAN 2013
Figure 28: Alexion Six-Month Revenue Forecast ($m) ............................................................ 91
Figure 29: Alkermes Six-Month Revenue Forecast ($m) ......................................................... 93
Figure 30: BioMarin Six-Month Revenue Forecast ($m) ......................................................... 95
Figure 31: Cubist Six-Month Revenue Forecast ($m) ............................................................. 97
Figure 32: Exelixis Six-Month Revenue Forecast ($m) ........................................................... 99
Figure 33: Incyte Six-Month Revenue Forecast ($m) ............................................................ 101
Figure 34: Jazz Six-Month Revenue Forecast ($m) .............................................................. 103
Figure 35: Momenta Six-Month Revenue Forecast ($m) ....................................................... 107
Figure 36: Nektar Six-Month Revenue Forecast ($m) ........................................................... 111
Figure 37: Onyx Six-Month Revenue Forecast ($m) ............................................................. 114
Figure 38: Eylea Six-Month Sales Forecast ($m) .................................................................. 117
Figure 39: Seattle Six-Month Revenue Forecast ($m) .......................................................... 120
Figure 40: United Six-Month Revenue Forecast ($m) ........................................................... 123
Figure 41: ViroPharma Six-Month Revenue Forecast ($m) ................................................... 126
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 18 GDHC001SAC / Published JAN 2013
2 Introduction
2.1 Report Scope
The Innovative Mid-Cap Biotech Benchmark Report applies GlobalData’s proprietary ranking
methodology to compare the competitive position of 15 innovative biotech companies on 20
financial metrics. The performances of these companies are analyzed on financial performance,
cost-containment, capital structure and firm utilization to illustrate the different strategies these
companies are using to increase value for their shareholders. Throughout the report, GlobalData’s
analysts provide you with expert insight, expanding on each of the metrics discussed. In addition to
the financial metrics, this report discusses each company’s recent pipeline and clinical
advancements, along with licensing and acquisition activity, and operations strategy. Lastly, this
report provides GlobalData’s viewpoint on each company’s future revenue outlook, and competitive
position within the biotech space.
Key Questions Answered
What are the specific strategies these innovative biotech companies employing to gain market
share?
What specific therapeutic areas are these biotech companies focusing their spending on?
How does my pipeline and commercialization strategy match up with theirs?
What particular enabling technologies and drug platforms are these biotech companies
developing?
How are these biotech companies maximizing their capital spending to gain a competitive
advantage?
Key Benefits
This report will enable you to:
Analyze and track the strategies that these successful biotech companies are using to gain
share in the increasingly competitive market.
Understand the underlying financial metrics that differentiate certain companies from the pack
in terms of growth and profitability, spending and asset structure.
Organize your sales and marketing strategy to identify companies with proprietary technologies
to maximize opportunities for strategic investment or partnerships.
Use this information as an independent source for your due diligence and transaction strategy.
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 19 GDHC001SAC / Published JAN 2013
GlobalData Selection Criteria
After extensive exploratory research and client feedback, GlobalData identified 15 emerging
biotech companies based on their revenue growth and/or potential of their clinical pipelines. While
not exhaustive, GlobalData believes these 15 mid-cap biotech companies comprise a
representative cross-section of drug makers that vary by technology and disease focus, providing a
foundation for strategic discussion and analysis. GlobalData’s coverage examines drug makers
from a unique company-centric lens – combining financial performance and resources allocation
with clinical and licensing activity to assess a company’s overall strategy. This type of coverage is
unlike any other analysis available and will deliver a consistent view into the evolution of these
companies corporate growth. Moving forward, GlobalData plans to expand this list of biotech
companies based on market dynamics and customer feedback to provide our clients with the most
current information and analysis on major players in the biotech space to guide their corporate
decision-making.
Companies covered: Acorda, Alexion, Alkermes, BioMarin, Cubist, Exelixis, Incyte, Jazz, Momenta,
Nektar, Onyx, Regeneron, Seattle, United Therapeutics, and ViroPharma
If there is a specific company you would like GlobalData to cover and include in our next report,
please don’t hesitate to contact GlobalData’s Industry Dynamics Team directly and we will make
every attempt to add it to our semi-annual coverage.
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 20 GDHC001SAC / Published JAN 2013
2.2 Report Catalysts
Regeneron’s global launch of Eylea (aflibercept) injection for wet age-related macular
degeneration.
Regeneron’s approval of Zaltrap (ziv-aflibercept) for the treatment of patients with metastatic
colorectal cancer.
Incyte’s approval of Jakavi (ruxolitinib) in the EU for myelofibrosis.
Onyx’s approval for Kyprolis (carfilzomib) injection for treatment of patients with multiple
myeloma.
Bayer’s (and Onyx’s) approval of Stivarga (regorafenib) for the treatment of patients with
metastatic colorectal cancer.
Seattle Genetics receiving marketing authorization in the EU for Adcetris (brentuximab vedotin)
for patients with Hodgkin lymphoma and systemic anaplastic large cell lymphoma.
Cubist submitted applications for its lead candidates CXA-201 (ceftolozane) and CB-315, both
in Phase III for Gram-negative bacterial infections.
BioMarin’s completed enrollment for Phase III trial for GALNS for the treatment of Morquio A
Syndrome. GALNS is the largest trial in company history.
Regeneron and Sanofi launch Phase III ODYSSEY trial – the first program of an investigational
drug targeting the PCKS-9 pathway to lower LDL-C.
Alexion adds to its rare disease portfolio with Enobia and Orphatec transactions.
Alkermes’ acquisition of Elan Drug Technology.
Jazz’s purchases of EUSA and Azur Pharma.
2.3 Upcoming Related Reports
Report titles are subject to change:
GlobalData (2013). Academic Tech Transfer Deals and Strategy Analyses, TBD 2013
GlobalData (2013). Global Generics Manufacturing Strategy Report, TBD 2013
GlobalData (2013). Contract Research Organizations Benchmark Report, TBD 2013
GlobalData (2013). Early Stage Biotech Funding and Strategy, TBD 2013
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 21 GDHC001SAC / Published JAN 2013
2.4 Recently Published Reports
GlobalData (2012). Biotech Strategy 2012 – Licensing, Collaboration, and M&A Trends,
November 2012, GDHC0001MAL
GlobalData (2012). Pharmaceutical Leaders 2012 – Key Trends, Emerging Strategies and
Financial Analysis of Top Performers, July 2012, GDHC0001BR
GlobalData (2012). Rare and Niche Disease Catalyst Monitor – Key Events Analysis 1H12,
May 2012, GDHC001DCM
2.5 GlobalData’s Benchmarking Methodology
GlobalData’s Innovative Mid-Cap Biotech Benchmark Report ranks 15 mid-cap biotech companies
on 20 financial metrics. These metrics include company-specific data such as revenues, margins,
expenses and balance sheet ratios that are weighted and combined into an aggregate composite
score that leads to a rank of each company’s overall financial performance. The ranking scale
ranges from 1.00–10.00, with the average being 5.00, and higher rankings representing better
overall performance. GlobalData believes one of the many strengths of our proprietary ranking
methodology is that company rankings are data-driven and empirical, not subjective or whimsical. It
is important to note that these rankings are retrospective and are intended to help illustrate the
strategies that companies are using to succeed financially, and should not be considered as an
endorsement by GlobalData, or a recommendation to purchase any securities. It is essential to
recognize that there are many factors that determine the success of any company, not just financial
performance, such as clinical pipeline, leadership of management and organizational structure,
which are not accounted for directly in our methodology. The rankings are primarily intended to
serve as an impetus for analytical discussion, and for examining a company’s relative competitive
position in a very dynamic industry.
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 22 GDHC001SAC / Published JAN 2013
2.6 GlobalData 3Q12 Biotech Benchmark Leader: Regeneron
Regeneron [REGN] was GlobalData’s Mid-Cap Biotech Benchmark Leader in the third quarter with
an overall score of 6.75. Regeneron’s leadership status was driven by the company’s significantly
higher financial metrics scores. The company’s aggregated Financial Management (FM) composite
score was 9.24, much greater than the peer group average of 5.00. Rounding out the top three
companies were Alexion [ALXN] which had an overall score of 5.90, and Cubist [CBST] which had
an overall score of 5.43.
Table 1 shows each company’s individual composite scores and overall score for the third quarter.
Table 1: GlobalData Benchmark Rankings, 3Q12 GD
Rank Company Financial Management
Expense Management
Resource Management
Capital Management
Overall Score
1 Regeneron 9.24 5.80 5.71 6.26 6.75
2 Alexion 6.72 5.51 5.56 5.82 5.90
3 Cubist 5.58 5.53 5.80 4.78 5.43
4 Alkermes 5.27 5.85 5.14 5.17 5.35
5 United 5.61 4.48 5.33 5.46 5.22
6 Acorda 4.41 5.46 5.43 5.34 5.17
7 Seattle 5.30 5.48 5.00 4.90 5.16
8 Jazz 5.90 4.33 5.35 4.81 5.10
9 BioMarin 4.74 5.69 4.99 4.81 5.06
10 ViroPharma 4.15 6.03 3.35 4.93 4.61
11 Exelixis 2.97 4.82 5.38 4.97 4.53
12 Incyte 5.05 5.38 4.61 2.68 4.43
13 Onyx 4.35 4.45 2.95 5.23 4.25
14 Nektar 3.69 4.73 5.40 3.15 4.24
15 Momenta 2.02 1.45 4.99 6.71 3.79
Source: GlobalData Note: Scale (1.00 – 10.00, Avg. Score = 5.00)
Meanwhile, Momenta [MNTA] was GlobalData’s Mid-cap Biotech Benchmark Laggard in the third
quarter with an overall score of 3.79. Contributing to the company’s laggard status were very low
scores in Financial Management (FM) metrics and Expense Management (EM) metrics. Momenta’s
aggregate score was 2.02 for FM and 1.45 for EM, both very low when compared to the peer group
average of 5.00. Rounding out the bottom three laggards were Nektar [NKTR] at 4.24 and Onyx
[ONXX] at 4.25.
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 23 GDHC001SAC / Published JAN 2013
2.7 Regeneron Overtook Alexion in 3Q12 as Benchmark Leader
Regeneron’s [REGN] overall ranking increased 0.85 points to 6.75 when compared to the
company’s rank in 2Q12. Regeneron’s first-place ranking was largely driven by its exceedingly high
(9.24) Financial Management (FM) aggregate composite score. Regeneron posted leading scores
on the following metrics: Revenue Growth Year-to-Year (10.49), Operating Income (9.36) and
Operating Income Growth Year-to-Year (11.57). These scores, combined with Alexion’s [ALXN]
0.41 drop, helped to vault Regeneron to leadership status.
Alexion’s ranked dropped 0.41 to 5.90, putting the company in second place in 3Q12. Pulling down
the company’s rank was its performance in Expense Management (EM), in particular the R&D
Expense Growth year-to-year metric. Alexion’s composite score on this metric was 2.52,
significantly lower than the peer group average of 5.00.
Table 2 depicts each company’s ranking change from the second quarter.
Table 2: GlobalData Benchmark Rankings, 2Q12 – 3Q12 GD Rank 2Q12 3Q12 3Q12 Rank 3Q12 Rank Chng
1 Alexion Regeneron 6.75 0.85
2 Regeneron Alexion 5.90 (0.41)
3 Acorda Cubist 5.43 (0.16)
4 Cubist Alkermes 5.35 0.04
5 United United 5.22 (0.19)
6 Jazz Acorda 5.17 (0.53)
7 Alkermes Seattle 5.16 0.14
8 Incyte Jazz 5.10 (0.17)
9 Momenta BioMarin 5.06 0.50
10 Seattle ViroPharma 4.61 0.00
11 ViroPharma Exelixis 4.53 1.67
12 BioMarin Incyte 4.43 (0.70)
13 Nektar Onyx 4.25 0.48
14 Onyx Nektar 4.24 (0.23)
15 Exelixis Momenta 3.79 (1.28)
Source: GlobalData Note: Scale (1.00 – 10.00, Avg. Score = 5.00)
Introduction
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 24 GDHC001SAC / Published JAN 2013
According to our analyses, the largest mover in 3Q12 (based on absolute value) among these
biotech companies was Exelixis [EXEL], which increased 1.67 points from 15th in 2Q12, to 11th in
3Q12. However, this drastic increase was largely due to cost-cutting, not revenue generation.
Momenta [MNTA] was the largest mover in the negative direction. The company’s ranking fell by
1.28 points to 3.79 in the third quarter, from 9th in 2Q12 to 15th in 3Q12. The combination of the
company’s negative revenue growth, margin losses and high cost-structure led to its laggard
performance in the third quarter.
Financial Management
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 28 GDHC001SAC / Published JAN 2013
3.3 Financial Management: Heat Map
3.3.1 Regeneron was the financial management leader in 3Q12, posting significantly higher scores across all metrics compared to its peer group
Table 3 displays each company’s Financial Management composite scores and overall FM score.
Table 3: Financial Management Composite Scores, 3Q12 GD Rank Company Revenue Revenue YtY
Growth (%) Op.
Income Op.
Margin Op. Income YtY
Growth (%) Overall FM
Score
1 Regeneron 8.88 9.80 9.36 5.89 11.57 9.10
2 Alexion 6.65 7.10 7.73 5.90 6.98 6.87
3 Jazz 4.66 7.10 5.34 5.67 6.34 5.82
4 United 5.78 5.27 6.03 5.70 5.07 5.57
5 Cubist 5.71 5.24 5.75 5.65 5.40 5.55
6 Incyte 2.74 8.96 3.55 5.02 6.43 5.34
7 Alkermes 3.80 6.07 3.98 5.30 7.40 5.31
8 Seattle 2.54 9.16 3.36 4.76 6.30 5.23
9 BioMarin 3.87 5.16 3.54 5.13 5.82 4.71
10 Acorda 3.02 4.71 4.11 5.43 4.68 4.39
11 Onyx 3.23 5.26 1.86 4.15 7.08 4.32
12 ViroPharma 3.31 4.56 3.71 5.18 3.87 4.13
13 Nektar 2.04 4.48 2.93 2.81 6.13 3.68
14 Exelixis 1.95 3.59 3.13 2.64 3.54 2.97
15 Momenta 1.81 3.52 3.11 (1.73) 3.38 2.02
Source: GlobalData Key: Green represents an area where the company is outperforming its peers Red represents an area where the company is currently challenged versus peers Note: Scale (1.00 – 10.00, Avg. Score = 5.00)
Financial Management
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 30 GDHC001SAC / Published JAN 2013
3.4.2 Revenue Growth YtY
3.4.2.1 With a full-year of exclusivity under its belt, Jakafi approval will be a significant revenue driver for Incyte – Seattle reaches milestone
Incyte’s [INCY] revenue grew by 260.5% year-to-year to $60.5m in the third quarter. This growth
rate placed INCY second among its peer group, surpassing its group average of 52.3%.
GlobalData attributes the revenue increase to Incyte’s approval of Jakafi, a JAK-inhibitor, and the
first and only approved drug indicated for the treatment of myelofibrosis.
Figure 4 shows the year-to-year revenue growth by company.
Figure 4: Year-to-Year Revenue Growth by Company
-94.2%
-89.6%
-32.0%-26.5%
-16.8%
13.0%
18.1%
19.3%
20.2%
44.1%
72.2%
139.5%
141.1%
260.5%
315.9%
-200% -100% 0% 100% 200% 300% 400% 500%
Momenta
Exelixis
Nektar
ViroPharma
Acorda
BioMarin
Cubist
Onyx
United
Alexion
Alkermes
Jazz
Seattle
Incyte
Regeneron
3Q12 2Q12
3Q12 Average = 52.3%3Q12 Std. Dev = 117.5%
Source: GlobalData & Company SEC filings
Seattle Genetics’ [SGEN] revenue grew 141.1% year-to-year to $49.8m in the third quarter. The
company’s revenue growth was driven by its July 2012 marketing approval of Adcetris in the
European Union by the EMA. The cancer drug was approved for the treatment of relapsed or
refractory Hodgkin lymphoma and systemic anaplastic large cell lymphoma in the EU, and will now
be available to all 27 member nations. The EU approval triggered two milestone payments totaling
$25m to SGEN under the company’s agreement with commercial partner Millennium, the oncology
wing of Takeda.
Financial Management
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 35 GDHC001SAC / Published JAN 2013
3.6 Expense Metrics
3.6.1 R&D Expense as a Percentage of Revenue
3.6.1.1 The use of CROs keeps Jazz’s R&D expenses in check, but spending in the near term will increase due to acquired in-process R&D programs
Jazz [JAZZ] was the peer group leader in 3Q12, spending only 3.9% of its revenue on R&D. Jazz
relies exclusively on contract research organizations and other third parties to assist in the design
and monitoring of its clinical trials for its internal product candidates. Jazz experiences substantial
cost-savings as a result of outsourcing R&D; however, the company does lose some control of its
clinical trial development which could lead to trial failures, and would result in delays in the
company’s regulatory filing process. Moving forward, GlobalData expects Jazz’s R&D expenses to
be higher in 1H13 compared to 2012 due to the acquisition of in-process R&D activities from its
purchases of Azur and EUSA Pharma. Jazz’s development pipeline now includes clinical trials
evaluating intravenously administered Erwinaze, and drug candidates Asparec (Phase I) and
Leukotac (Phase III).
Figure 8 displays each company’s R&D expenses as a percentage of revenue for the third quarter.
Figure 8: R&D Expense as a Percentage of Revenue by Company, 3Q12
396.6%
230.5%
184.8%95.7%
87.6%
82.8%51.7%
37.0%
29.5%
28.3%
26.9%18.5%
18.2%
15.5%
3.9%
0% 100% 200% 300% 400% 500%
Momenta
ExelixisNektar
Onyx
Seattle
IncyteBioMarin
Regeneron
Cubist
AlkermesUnited
Alexion
ViroPharma
AcordaJazz
3Q12 2Q12
3Q12 Average = 87.2%3Q12 Std. Dev = 107.4%3Q12 Average (adj). 41.3%
Source: GlobalData & Company SEC filings Note: Excluding data from the bottom three outliers, the 3Q12 peer group average drops to 41.3% for R&D spend as a percentage of revenue
Pipeline Assessment
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 48 GDHC001SAC / Published JAN 2013
4.4 Clinical Highlights by Company
4.4.1 Acorda
4.4.1.1 Acorda announces top-line results from post-marketing study evaluating 5mg dose of Dalfampridine-ER
In 3Q12, Acorda [ACOR] announced top-line results from a post-marketing commitment study
evaluating a 5mg dose of Ampyra (dalfampridine) to improve walking ability in people with Multiple
Sclerosis (MS). The randomized study included 430 participants across three treatment arms:
placebo, 5mg or the currently marketed 10mg of dalfampridine-ER, twice daily. The study failed to
confirm the efficacy of the 5mg dose as measured on the primary outcome of improvement in
change in walking speed. The average change in baseline in walking speed was significantly
greater for the 10mg group compared to placebo but not for the 5mg group over placebo. The
company believes the results show that 10mg twice daily is the appropriate, safe and effective
dose. The trials reported no new safety signals and no seizures were reported. However, two
participants experienced serious adverse events in each of the 5mg and 10mg treatment groups.
The occurrence of adverse events was consistent with the product labeling, with urinary tract
infection and nausea & dizziness being the most highly recorded. Source: GlobalData; Acorda,
press release, August 13, 2012.
4.4.1.2 Acorda acquires nasal spray formulation with purchase of Neuronex
In February 2012, Acorda acquired Neuronex, Inc., a privately-held development stage
pharmaceutical company, for $10m with additional milestone payments totaling up to $125m.
Neuronex was preparing a New Drug Application for a proprietary nasal spray of Diazepam, or
DZNS, as a rescue treatment for certain epilepsy patients. GlobalData believes Acorda’s
experience in developing neurological products will be leveraged and combined with its existing
sales infrastructure for the sale of DZNS, providing a near-term commercial opportunity for the
company. To acquire the technology, Acorda made an upfront payment of $2m and paid $500k of a
pre-closing research funding commitment of up to $1.2m to prepare for the DZNS new drug
application filing with the FDA. Source: GlobalData; Acorda, press release, February 15, 2012.
Acorda will expand Ampyra label to include patients with post-stroke deficits and cerebral palsy
Licensing & Acquisition Strategies
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 65 GDHC001SAC / Published JAN 2013
5.3 M&A Analysis
5.3.1 Alkermes Acquisition of Elan Drug Technology Creates Leadership in CNS Therapeutics
5.3.1.1 Alkermes purchases Elan unit for $960m
Alkermes [ALKS] reached a deal to acquire Elan Drug Technologies (EDT) from Irish drug-maker
Elan [ELN] for approximately $960m in cash and stock. The deal included an upfront cash payment
of $500m and 31.9 million Alkermes shares valued at approximately $462m at time of purchase.
EDT’s intangible assets accounted for $689.8m of the total acquisition cost and included
collaboration agreements, in-process R&D and the company’s NanoCrystal drug delivery platform.
As a result of the purchase, Alkermes will create a new holding company, Alkermes, PLC,
headquartered in Dublin, Ireland. Meanwhile, Elan received a 25% stake in the newly minted
company. EDT generated $261m in revenue in 2010 and will fold-in to Alkermes, approximately
doubling its annual revenue to more than $450m.
GlobalData believes the deal joins two companies whose primary business focuses on
technologies that improve the delivery of drugs made and licensed by other companies. Both
companies possess proprietary technologies to make drugs remain stable for longer periods of
time in the bloodstream, thereby requiring less-frequent injections, improving the pharmacokinetics
of their products. EDT formulates Invega Sustenna (paliperidone palmitate), the once-monthly
schizophrenia drug sold by Johnson & Johnson [JNJ], and Ampyra (dalfampridine), which is
developed by Acorda Therapeutics [ACOR] and used to improve walking ability in people who have
multiple sclerosis; whereas Alkermes is the drug-delivery technology partner for Bydureon
(exanatide injection), marketed by Eli Lilly [LLY] and recently acquired Amylin Pharmaceuticals
[AMLN], and continues to receive royalties from this partnership. The deal makes sense for both
parties involved – Elan has been trying to divest its EDT unit for many years and even considered
spinning it off as a separate entity. The sale of EDT will allow Elan to cut its debt and focus on drug
development. Meanwhile, we see Alkermes taking advantage of EDT’s NanoCrystal injection
technology used for Xeplion, another schizophrenia drug developed by J&J, and applying this
injectable platform for projects in its clinic – ALKS-9070, ALKS-33, and ALKS-5461 – which are
being investigated for schizophrenia and alcohol and cocaine dependencies. Source: GlobalData;
Alkermes, press release, September 16, 2011.
Alkermes strengthens its drug delivery business with EDT purchase
Resource Management Strategies
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 71 GDHC001SAC / Published JAN 2013
6 Resource Management Strategies
6.1 Competitive Framework
The Resource Management (RM) section discusses how each company is deploying its physical,
human and financial resources. GlobalData benchmarks each of the company’s performance on
several utilization and balance sheet metrics. We use our proprietary ranking system to illustrate
which companies are performing the best on each metric, and discuss what specific drivers and
strategies each of the three top-performing companies are implementing to remain leaders on each
indicator.
A company’s physical resources include the expansion of manufacturing plants, R&D facilities and
supply agreements; human resources includes changes to executive leadership, headcount
attrition and employee utilization; capital management consists of the company’s debt structure,
working capital and return-on-investment.
Key Questions Answered
Is the company investing in R&D capacity to grow inventory to meet demand of the market?
Is the company experiencing any manufacturing issues that could disrupt its supply chain and
increase delivery time for its products?
Is R&D and S,G&A headcount being used efficiently to maximize the company’s bottom line?
Is headcount rationalization contributing to margin growth?
What is the company’s operating leverage?
Is the company paying down its debt to improve its cash flow?
If an unforeseen event occurs, does the company have enough cash on hand to sustain
operations for the next twelve months?
Resource Management Strategies
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 79 GDHC001SAC / Published JAN 2013
6.5.4 R&D Expense per R&D Employee
6.5.4.1 Onyx invests heavily in Kyprolis R&D, which will begin to pay-off in 1H13 when the company begins to recognize higher Kyprolis sales
Onyx [ONXX] posted $85.7m in R&D expenses in the third quarter, almost entirely accounting for
its $89.5m the company reported in revenue. GD estimates that Onyx spends approximately $465k
per R&D employee, significantly higher than its peer group average of $203k. We estimate the
company’s R&D headcount to be at 184 FTEs, a 16.5% increase from the 158 FTEs we
approximate for 3Q11. GlobalData attributes the company’s laggard status on this metric to clinical
trial costs, which include several Phase III studies evaluating Kyprolis injection either as a single
agent therapy or in combination with other drugs.
Figure 21 shows the R&D expense per R&D employee by company for 3Q12.
Figure 21: R&D Expense per R&D Employee (In $ Thousands) by Company, 3Q12
$465.6$328.4
$271.0$261.9
$238.8
$225.2$206.0$204.1$200.4
$158.3$129.2
$122.1$105.0
$68.9$63.4
$- $100 $200 $300 $400 $500
OnyxUnitedCubist
ExelixisRegeneron
BioMarinIncyte
MomentaViroPharma
AcordaAlexionSeattleNektar
AlkermesJazz
3Q12 2Q12
3Q12 Average = $203.2k3Q12 Std. Dev = $105.4k
Source: Company data and GlobalData estimates
Resource Management Strategies
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 86 GDHC001SAC / Published JAN 2013
6.8.5 Sales/Assets Ratio
6.8.5.1 The combination of revenue growth with an expanding asset base allows Regeneron to be efficient at generating sales
Regeneron [REGN] was the peer group leader on sales to asset ratio at 0.26, which was higher
than its group average of 0.11. The company had a total asset base of $1.6bn on sales revenue of
$427.7m in the third quarter. As mentioned, the combination of the company’s revenue growth with
an increase in net accounts receivables contributes to the company being very efficient at utilizing
its assets to generate sales.
Figure 26 displays the sales-to-assets ratio by company for 3Q12.
Figure 26: Sales to Assets Ratio by Company, 3Q12
0.01
0.02
0.03
0.07
0.07
0.08
0.09
0.10
0.12
0.12
0.12
0.15
0.19
0.20
0.26
0.00 0.05 0.10 0.15 0.20 0.25 0.30
Momenta
Exelixis
Nektar
Onyx
ViroPharma
BioMarin
Alkermes
Jazz
Alexion
Seattle
Cubist
United
Acorda
Incyte
Regeneron
3Q12 2Q12
3Q12 Average = 0.113Q12 Std. Dev = 0.07
Source: GlobalData and company SEC filings
Company Drill-Downs & Forecasts
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 88 GDHC001SAC / Published JAN 2013
7 Company Drill-Downs & Forecasts
7.1 Acorda SWOT & Forecast
7.1.1 With Revenue Flattening, Acorda Looks to Extend Ampyra Labeling to Include Additional Indications and More Regions in the EU
Strength: Lean on Collaborators to Drive Ex-US Revenue Growth. Acorda [ACOR] has
licensing agreements with Biogen Idec and Watson Pharmaceuticals [WPI] which allows the
company to leverage its partners’ commercial capabilities. Acorda’s agreement with Biogen [BIIB]
led to the approval of Ampyra (marketed as Fampyra outside the US) in the EU, Canada and
Australia. The drug is expected to be launched in the remaining European countries by the end of
2012. Acorda’s agreement with Watson Pharma enables it to manufacture generic versions of its
own drug, Zanaflex (tizanidine), in response to potential launches of generic versions of the drug in
the coming months.
Weakness: Overdependency on Ampyra to Sustain Operations. The company is heavily
dependent on Ampyra for most of its revenue. Consequently a sharp decline in Ampyra sales
would result in poor financial performance by the company.
Opportunity: Pipeline Development. Acorda currently has two new drugs in late-stage
development, in addition to investigating the safety and efficacy of Ampyra in multiple MS
indications. Furthermore, the company has other candidates in Phase I and in preclinical discovery
which could potentially be first-in-class treatments for heart failure, stroke, and spinal cord injury.
Threat: Increasing Generic Competition for Zanaflex. In February 2012, Apotex launched a
generic version of Zanaflex, which resulted in a decline in Acorda’s Zanaflex sales. Apotex’s launch
and possible other launches of generic versions of Zanaflex will even further erode Acorda’s top-
line revenue. In May 2012, Acorda received a Paragraph IV letter from Mylan Laboratories [MYL]
informing it of the company’s filing an ANDA to manufacture generic versions of Zanaflex.
Company Drill-Downs & Forecasts
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 89 GDHC001SAC / Published JAN 2013
Figure 27 shows Acorda revenue from 3Q11 to 3Q12 and a six-month forecast.
Figure 27: Acorda Six-Month Revenue Forecast ($m)
$68.0
$72.6$71.3
$75.7
$72.2 $71.3
$74.3
$77.5
$62$64$66$68$70$72$74$76$78$80
3Q11 4Q11 1Q12 2Q12 3Q12Actual
3Q12GD Est.
4Q12GD Est.
1Q13GD Est.
(In $
m)
Source: Company data and GlobalData estimates
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 129 GDHC001SAC / Published JAN 2013
8 Appendix
8.1 Research Methodology
GlobalData’s dedicated research and analysis teams consist of experienced professionals with
marketing, market research and consulting backgrounds in the pharmaceutical industry, and
advanced statistical expertise. GlobalData adheres to the codes of practice of the Market Research
Society (www.mrs.org.uk) and the Strategic and Competitive Intelligence Professionals
(www.scip.org). All GlobalData databases are continuously updated and revised. The following
research methodology is followed for all databases and reports.
8.1.1 Coverage
The objective of updating GlobalData’s coverage is to ensure that it represents the most up-to-date
vision of the industry possible. Changes to the industry taxonomy are built on the basis of extensive
research of company, association and competitor sources. GlobalData aims to cover all major
news events and deals in the pharmaceutical industry, updated on a daily basis. Company
coverage is based on three key factors: revenues, products, and media attention/market potential.
The estimated revenues of all major companies, including private and governmental, are
gathered and used to prioritize coverage.
Companies which are making the news or which are of particular interest due to their
innovative approach are prioritized.
The coverage is further streamlined and strengthened with additional inputs from GlobalData’s
expert panel (see below).
8.1.2 Secondary Research
The research process begins with exhaustive secondary research on internal and external sources
being carried out to source qualitative and quantitative information relating to each market. The
secondary research sources that are typically referred to include, but are not limited to:
Company websites, annual reports, financial reports, broker reports, investor presentations,
and US Securities and Exchange Commission (SEC) filings
Industry trade journals, scientific journals, and other technical literature
Internal and external proprietary databases
Relevant patent and regulatory databases
National government documents, statistical databases, and market reports
Procedure registries
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 130 GDHC001SAC / Published JAN 2013
News articles, press releases, and web-casts specific to the companies operating in the
market.
8.1.3 Expert Panel Validation
GlobalData uses a panel of experts to cross-verify its databases and forecasts.
GlobalData’s expert panel comprises marketing managers, product specialists, international sales
managers from pharmaceutical companies; academics from research universities, KOLs from
hospitals, consultants from venture capital funds, and distributors/suppliers of pharmaceuticals and
supplies.
Historic data and forecasts are relayed to GlobalData’s expert panel for feedback and adjusted in
accordance with their feedback.
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 131 GDHC001SAC / Published JAN 2013
8.2 About the Authors
8.2.1 Analysts
Adam Dion, MSc
Mr. Dion is an Analyst in the Healthcare Industry Dynamics Team at GlobalData. Mr. Dion is an
author of GlobalData’s PharmaSphere benchmark reports which rank the competitive positions of
the top companies in the pharmaceutical, biotech, and medical device and CRO sectors. Adam is
the lead author of Pharmaceutical Leaders 2012: Key Trends, Emerging Strategies and Financial
Analysis of the Top Performers. Adam also provides coverage of trends in the healthcare IT space,
including mHealth and cloud computing. Prior to joining GlobalData, Mr. Dion was an Analyst with
Technology Business Research, a leading market research and consulting firm. In this role, he was
responsible for coverage of the leading blue-chip hardware and software and BPO companies,
such as Dell, Apple, SAP, Acer, Wipro and Tata Consultancy, analyzing these companies’ go-to-
market and vertical integration strategies, financial forecasting and competitive benchmarking.
Adam also has been involved in a number of primary market studies in the consumer space,
analyzing the market penetration of tablets, Netbooks, e-readers and mobile devices. His analytical
commentary has been quoted by leading sources, such as the Wall Street Journal, Forbes,
Financial Times, The Guardian, ComputerWorld and eWeek. Adam received his B.S. in
Neuroscience from Merrimack College, and M.S. in Marketing from the University of New Haven.
Adam can be reached by email at: [email protected].
Adefemi Adenuga, MBS
Mr. Adenuga is a key strategic and financial analyst in the Healthcare Industry Dynamics Team at
GlobalData. Mr. Adenuga is an author of GlobalData’s PharmaSphere strategy reports covering:
trends in emerging markets, mergers and acquisitions, generic drug manufacturers, and contract
manufacturing organizations. Femi is the lead author of Biotech Strategy 2012 – Licensing,
Collaboration and M&A Trends. Prior to joining GlobalData, Mr. Adenuga held an analyst position
with the Global Planning and Materials Management Team at Gilead Sciences. Mr. Adenuga also
held an associate position covering business development, credit structuring, international trade,
and financial analysis at Guaranty Trust Bank. He has a strong interest and background in mergers
and acquisitions as well as global manufacturing and corporate strategy. Adefemi has also been
involved in a number of primary and secondary market studies in the US medical devices space
analyzing the dynamics and competitive landscape of the in-vitro diagnostics segment. Adefemi
holds a B.S.in Cell Biology and Genetics from the University of Lagos (Nigeria) and a Masters in
Bioscience Management (M.B.S.) with an emphasis in business administration from the Keck
Graduate Institute of Applied Life Sciences, a member of the Claremont University Consortium.
Femi can be reached by email at: [email protected].
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 132 GDHC001SAC / Published JAN 2013
8.3 Director, Healthcare Industry Dynamics
Joshua Owide, BS
Mr Owide is the Director of Healthcare Industry Dynamics Team at GlobalData. Prior to joining
GlobalData, Mr. Owide was a senior pharmaceutical company analyst at Datamonitor, covering
large-cap companies from the US, EU and Japan. Prior to joining Datamonitor, Joshua undertook a
bioinformatics studentship at the Ludwig Institute for Cancer Research where he analyzed a
genome wide RNAi screen identifying the importance of specific proteins in cell morphology.
Joshua holds a B.S. in Physiology for the University of Leeds where he conducted and published
research in renal physiology.
8.4 GlobalHead of Healthcare Research & Consulting
Bonnie Bain, Ph.D
Bonnie Bain, Ph.D. is Global Head of Healthcare Research & Consulting for GlobalData, managing
the Medical and Pharmaceutical arms of the business. Prior to this role, she was Vice President
and Global Research & Analysis Director for Informa where she oversaw the global strategy and
operations for Datamonitor Healthcare’s syndicated research business. Dr. Bain has over 15 years’
experience in the healthcare sector and a proven track record of developing innovative solutions on
both the client and vendor sides of the business. Prior to joining Informa, Bonnie was Director of
Product Development at Wood Mackenzie where she oversaw development and management of
two product lines. Bonnie also worked for several years at Decision Resources as an Analyst and
Project Manager. On the client side of the industry, Bonnie worked for several years as a Senior
Manager in Marketing Strategy and Analytics at Boston Scientific where her work contributed to the
successful commercialization of the first ever Access and Visualization Platform at the company.
She has a Ph.D. in Biochemistry and Molecular Biology from Purdue University and was a Post-
Doctoral Fellow in Molecular Pharmacology at The University of Miami School of Medicine.
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 133 GDHC001SAC / Published JAN 2013
8.5 About the Industry Dynamics Team
The Industry Dynamics Team strives to provide an in-depth series of reports based on solid
financial and strategic analysis to help clients make informed decisions. Our PharmaLeaders and
PharmaSphere portfolios gives clients’ access to company, sector and industry-wide information on
the established and emerging players within the global pharmaceutical marketplace.
Pharma eTrack gives you the key information to drive sales, investment and deal making activity in
your business. It includes the following information:
4,400+ market size data tables across 100+ Indications for 11 countries with historic data from
2002 and forecasted till 2017
35,000+ pipeline products
110,000+ clinical trials
10,000+ marketed products
30,000+ deals
20,000+ company profiles
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 134 GDHC001SAC / Published JAN 2013
8.6 GlobalData
GlobalData is a leading global provider of business intelligence in the Healthcare industry.
GlobalData provides its clients with up-to-date information and analysis on the latest developments
in drug research, disease analysis, and clinical research and development. Our integrated business
intelligence solutions include a range of interactive online databases, analytical tools, reports and
forecasts. Our analysis is supported by a 24/7 client support and analyst team.
GlobalData has offices in New York, Boston, London, India and Singapore.
8.8 Disclosure Information
GlobalData is a product of GlobalData Ltd, a UK registered company. GlobalData Ltd has no
current or intended investment banking or corporate finance relationships or operations. The
material presented in this report is provided for information purposes only and is not to be used or
considered as a recommendation to buy, hold or sell any securities or other financial instruments.
No GlobalData Ltd directors, officers or employees are on the Board of Directors of a covered
company and no one at a covered company is on the Board of Directors of GlobalData Ltd.
Appendix
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form. Page 135 GDHC001SAC / Published JAN 2013
8.9 Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the publisher, GlobalData.