Travaux dirigés de simulation de vente d'Alexion à Roche. Cours de M&A de M. Pierre CASANOVA à l'I.A.E. d'Aix-en-Provence.

1. Martin Alnes
Aurore Cassin
Daria Chebatarova
Indra Pratama
Qiong Qi

2. STRENGTHS WEAKNESSES
1. 81,735 employees present in 108 countries
2. The 2 divisions (Pharmaceuticals and Diagnostics)
add up to their efficiency in decision-making
process by working under one command.
3. It is one of the world’s leading supplier of cancer
medicines and the number one in vitro diagnostics
company (20% share)
4. Innovation through a focus on R&D (23% of
employees) on pharmaceuticals and diagnostics.
5. Focused on value strategy (i.e. oncology products)
rather than on volume strategy.
6. By acquiring American biotech company Genentech
and Japanese company Chugai pharm, Tucson,
Ventana, exclusive marketing possibilities for the
products have arisen.
1. Some drugs that are patent to Roche are
massively produced in developed countries and
are not efficiently distributed in the third world
countries (like in the case of Tamiflu), thus
licensing is not fairly utilized.
2. Imitation of products, e.g. fake medicines
supplied under brands name affect the brand.
OPPORTUNITIES THREATS
1. Strategic agreements with other pharmaceutical
companies and organizations to develop its
research as well as significant budget setting for
R&D
2. Global penetration through mergers and
acquisitions
3. Growth in demand for quality healthcare solutions
1. Risk of unsuccessful launch of new products
2. Regulatory environment is becoming more
severe
3. Competitors, incl. Siemens, Abbott, Sanofi who
are developing too.

3. Strengths
•Consistent
Financial
Performance
•Strong Patent
Base
•Lead Product
Soliris
•Wide
Geographical
Presence
Weaknesses
•Involvement in
Legal
Proceedings
•Third Party
Dependency For
Vial Filling
Opportunitie
s
•Pipeline
Products &
deals
•Inorganic
Growth
Strategies
•Demographic
Trends
•Orphan Drugs
designation
•Emerging
Markets
Threats
•Stringent
Government
Regulations
•Uncertainties in
R&D
• (Competitive
Pressures)

4. 2007 2008 2009 2010 2011E 2012E
Revenu
e
$72.041
Million
$259.09
9
Million
$386.8
Million
$540.95
7
Million
$775.3
Million
$1
Billion
Net
Income
-$92.29
Million
$33.149
Million
$295.16
6
Million*
$97.030
Million
N/A N/A
EPS -$2.54 $0.39 $3.26* $1.04 $1.30 $1.67
Revenu
N/A 259.65
e
%
Growth
49.29% 39.85% 43.32% 28.98%
EPS
Growth
N/A N/A 735.90
%
-68.1% 25% 28.46%
Net
Cash
-
$87.288
Million
-$1.511
Million
$166.30
2
Million
$357.88
7
Million
$444.47
Million
(Q3
2011)
N/A
Alexion will finance Enobia with cash and
$300 million of debt.
Even if it seems as a big warning sign on the
surface, it isn’t so. Alexion has good cash flows.
The stock trades at over 98x trailing
earnings, and 61x forward earnings.
Few companies are growing as fast as
Alexion is, and Soliris is approved for new
treatments, and new therapies are released,
growth will accerlerate from here.

5. Alexion bough Taligen to gain rights to
their experimental ophthalmology drug for
the treatment of Age related muscular
degeneration
Alexion bought Enobia to gain rights to
investigative treatment for HPP
(hypophosphatasia)

6. If Alexion or their
third-party
providers, including
their product
vialers, packagers
and labelers, fail to
compluy full with
regulations,
Government-enforced
shutdown of
production
facilities
Product
shortages

7. On January 26, 2011 Novartis
Vaccines & Diagnostics Inc filed a
civil action against Alexion
Claims willful infringement by Alexion of
U.S. Patent Novartis seeks monetary
damages.

8. Conduct
additional
studies
Failure to
comply with
the laws
Approval for
Soliris
Administrative
sanctions
Interruption of
production

9.  Revenue Enhancement
Commercial rights on existing orphan drugs, Soliris, in
40 Countries for Paroxysmal Nocturnal Hemoglobinuria
(PNH) treatment & in US and EU for Atypical Hemolytic
Uremic Syndrome (aHUS)
Potential treatments using “Soliris” for another 8 severe
& ultra-rare diseases beyond PNH & aHUS
Patents on new & existing orphan drugs; Soliris,
Asfotase Alfa, cPMP Replacement Therapy, ALXN
1102/ALXN 1103, ALXN 1007

10.  Cost Savings
 Using Roche’s existing global distribution network.
 Administrative cost reduction
Alexion’s SG&A for 2011: USD 308.18 million
Synergy will provide additional value (assuming WACC of
8.12% & growth rate of 3.00%) :
퐔퐒퐃 ퟑퟎퟖ. ퟏퟖ 퐦퐢퐥퐥퐢퐨퐧
ퟖ. ퟏퟐ%− ퟑ. ퟎퟎ%
= 퐔퐒퐃 ퟔ, ퟎퟏퟗ. ퟏퟒ 퐦퐢퐥퐥퐢퐨퐧