In the Pharmaceutical industry, several companies are doing well in their financial reporting, illustrating that these companies have been expanding their profits and growing in the industry. While my company Teva Pharmaceutical’s total assets this year decreased slightly from $50,142 million to $48,881 million, Teva assets in general have increased over the past few years. From 2008 to 2010, Teva grew over $12 million in assets. Also, last year, Teva completed an acquisition with Japanese company Taiyo, the third largest generic company in Japan, which has expanded their coverage and has more accessibility to more generic research (Teva 2012). Novo Nordisk is doing spectacular and is has continued to progressively increase their sales and profits. Novo Nordisk saw an 18% sale increase the first nine months of this year from 48,226 to 57,064 million. Also, their operating profit expanded from $16.3 to 21.9 million, a 34% increase (Novo Nordisk 2012). Abbott Laboratories is also experiencing an increasing amount of sales; from 2009 to 2011, Abbott Laboratories’ sales increased from $30.7 to $38.8 million, a well improvement. From 2010 to 2011, their net earnings increase from $4.6 to 4.7 million (Abbott 2011). While these companies have been doing well, others have not had the same experience. Large company Pfizer has continued to lose profits. Pfizer’s third-quarter reported revenues of this year have decreased from about $16.6 million (2011) to nearly $14 million, a 16% decrease in revenue (Pfizer 2012). Pfizer is one of the largest companies in the Pharmaceutical industry, but it is interesting to see their decrease in profits. AstraZeneca has also lost revenue. From 2010 to 2011, AstraZeneca’s assets have decreased from $56.1 to 52.8 million (AstraZeneca 2012).
Abbotts Laboratories (2011). Annual Reports. Retrieved from
http://www.abbottinvestor.com/phoenix.zhtml?c=94004&p=irol- proxy&cid=re_annualreprts2011_Reportsandfinancialscontent_abbottinvestors.
AstraZeneca (2012). AstraZeneca Annual Report 2011. Retrieved from
http://www.astrazeneca- annualreports.com/2011/documents/pdfs/annual_report_pdf_entire.pdf.
Novo Nordisk (2012). Financial Report for the Period 1 January 2012 to 30 September 2012. Retrieved from
http://webmedia.novonordisk.com/nncom/images/investors/investor_presentations/2012/I nterim_report/PR121031_Q3_2012_UK.pdf.
Pfizer (2012). Pfizer Reports Third-Quarter 2012 Results. Retrieved from
http://www.pfizer.com/files/investors/presentations/q3performance_110112.pdf
Teva (2012). Financial Fundamentals. Retrieved from
http://ir.tevapharm.com/phoenix.zhtml?c=73925&p=irol-financials.
It is good to take note of the fact that Novo Nordisk and Abbott Laboratories are doing well in their financial reports. This means that investing in them would be beneficial since thier net earnings and overall revenue continue to increase. The other companies (Pfizer, AstraZeneca, Teva) are probably not very good options since their stockholders are probably losing money right now due to their downfalls in the past year. Our best bet would probably ne with either Novo Nordisk or Abbott Laboratories based on the information you are giving.
ReplyDeleteNovo Nordisk and Abbott Lab. are very good investments are the moment, especially with their finances going up so much. They seem to be growing a lot more than any other company out there and with AstraZeneca, who was a huge competitor basically out of the game, they may have a chance to beat out some big competition.
ReplyDeleteI think that we should focus on companies other than the large companies such as Pfizer Inc. because they have the greatest potential for growth. while the financials for the other companies look promising w should conduct further research regarding revenue and profit growth for the next five years as that is the type of investment that ABC Investment require. Based on that, we should then decide whether to invest in the company that is going to initially have a huge profit increase and begin to plateu or should we invest in a company that gradually grows in profits? Or to put it more simply, the one with the greatest increase in profit?
ReplyDelete