Finding Comparables for Valuation - Venture Capital Finance

Kendle International Inc

Kendle is involved in contractual research for companies . Kendle is basically a clinical research organization , and it provides services from Phase I-IV of clinical development to bigger pharma companies Kendle delivers integrated clinical research services , including clinical trial management , clinical data management , statistical analysis , medical writing , regulatory consulting and organizational meeting management and publications services on a contract basis to the pharma industry . Kendle operates in North America , Europe , Asia /Pacific Latin America and Africa . On August 16 , 2006 , Kendle completed the acquisition of Phase II-IV Clinical

Services business of Charles River Laboratories International , Inc . In April 2006 , Kendle acquired CRO International Clinical Research Limited

The current financials of Kendle are as follows (In millions of USD

HYPERLINK "http /www .google .com /finance ?fstype ii cid 660744 " Income Statement Quarterly (Jun '06 ) Annual (2005 ) Annual (2004 )Gross Profit 28 .13 93 .45 75 .98

Operating Income 6 .40 17 .54 7 .30

Net Income 4 .29 10 .67 3 .57

HYPERLINK "http /www .google .com /finance ?fstype bi cid 660744 Balance Sheet br

HYPERLINK "http /www .google .com /finance ?fstype ci cid 660744 " Cash Flow Net Income /Starting Line - 10 .67 3 .57

Cash from Operating 4 .49 23 .03 7 .08

Cash from Investing 3 .29 -5 .15 -6 .02

Cash from Financing -2 .13 2 .21 -5 .43

Net Change in Cash 5 .93 19 .77 -4 .08 Key Stats Ratios

Quarterly (Sep '06 ) Annual (2005 ) Annual (TTM

Net Profit Margin 4 .13 4 .26 5 .24

Operating Margin 8 .37 7 .00 8 .37

EBITD Margin - 10 .19 10 .88

Return on Average Assets - 6 .14 -

Return on Average Equity - 9 .48 -

Employees 1 ,900 - - However compared to the competition , the basic numbers are as follows

Company Revenue Market Cap EPS PE Ratio Beta Quote

Kendle 250 503 1 .15 30 .48 2 .11 35 .05

HYPERLINK "http /google .brand .edgar-online .com /fetchFilingFrameset .aspx ?FilingID 4279576 Type HTML http /google .brand .edgar-online .com /fetchFilingFrameset .aspx ?FilingID 4 279576 Type HTML Parexel 760 829 0 .87 35 0 .9 30 .7

Covance 1250 3920 2 .12 28 .9 0 .32 61 .25

Pharmaceutical Product Development 1037 3700 1 .33 23 .7 1 .19 31 .6 Pharmanet Development Group 429 427 -2 .22 10 .38 1 .52 23 .04 The Advisory Board Company 165 1 .09 1 .31 44 0 .53 57 .73 As an industry the companies enjoy a very high PE ratio

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