1. Market Research
  2. > Pharmaceutical Market Trends
  3. > Financial Assessment of the Global Pharmaceutical and Biotechnology Industry 

Financial Management is the Key Strategy for Sustainability

This financial assessment study analyzes the financial ratios of public companies across the globe in the pharmaceutical and biotechnology industry. The research objectives are to rank companies based on their financial and risk management while also identifying key trends that can impact the performance of industry participants over the next year. Those analyzed include 718 publicly-listed pharmaceutical and 482 publicly-listed biotechnology companies across the globe. To assess the financial performance, ratios are divided into four categories: profitability, liquidity, activity (turnover), and solvency. Top performers in each industry are also highlighted.

The Key Issues/Challenges Faced by Industry Participants in the Pharmaceutical and Biotechnology Industry Include:

•The global economic slowdown
•Regulatory compliance
•Reducing profitability
•Increasing R&D costs
•Pricing pressures
•Counterfeit business

Financial Analysis of the Pharmaceutical and Biotechnology Industry

1. Margin Analysis
•The pharmaceutical industry has generally witnessed smaller margins due to increasing competition from generics, pricing pressures, and decreasing healthcare spending.
•In the biotechnology industry, companies within low revenue range and relatively new products have witnessed negative margins because of the heavy investment in R&D and SG&A (selling and general expenses).

2. Profitability Analysis
•Companies with a large portfolio of drugs have seen higher profitability in the pharmaceutical industry.
•The long timelines and accumulating expenditures incurred before a drug is commercialized is making the biotechnology industry less profitable in initial years, even resulting in negative margins for companies that are smaller in terms of revenue.

3. Turnover Analysis
•In both the pharmaceutical and biotechnology industries, companies with lower revenue had poor turnover ratios because of the huge investments made in assets and in the development of the product.

4. Cash Reserve Analysis
•In the pharmaceutical industry the smaller companies in terms of revenue are increasing their cash reserve as a percentage of their assets.
•In the biotechnology industry, both small and large companies in terms of revenue are increasing their cash reserve as a percentage of their assets.

5. R&D to Sales Ratio
•Both the pharmaceutical and biotechnology industries did not witness a great variation in the R&D to sales ratio in 2011 compared to the previous year. Though there was a general decline in the overall sales in both the pharmaceutical and biotechnology industries, the R&D expenses were not considerably reduced.

Who Will Benefit?

•Pharmaceutical & biotechnology companies
•Private equity
•Venture capital investors
•Fund managers
•Retail investors
•Sovereign wealth funds
•Hedge funds
•Insurance funds and other members of the investing community

Table Of Contents

Financial Assessment of the Global Pharmaceutical and Biotechnology Industry 
Table Of Contents

1. Executive Summary

2. Definition of Key Terms

3. Research Objective and Scope

4. Research Methodology

5. Key Issues/Challenges Faced by Industry Participants

6. Pharmaceutical Industry

7. Top Performers in the Pharmaceutical Industry

8. Biotechnology Industry

9. Top Performers in the Biotechnology Industry

10. The Frost and Sullivan Story

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
Frontier Pharma: Breast Cancer - First-in-Class Innovation Clustered Around Growth Factor Signalling Processes

Frontier Pharma: Breast Cancer - First-in-Class Innovation Clustered Around Growth Factor Signalling Processes

  • $ 6 995
  • Industry report
  • February 2016
  • by GBI Research

Frontier Pharma: Breast Cancer - First-in-Class Innovation Clustered Around Growth Factor Signalling Processes Summary The breast cancer pipeline is the largest in the pharmaceutical industry, with 1,050 ...

Opportunity in the Indian Pharmaceutical Market - 2016; Market size, Market share, Market landscape, Market trend analysis, Growth drivers, Future opportunity, Future forecast

Opportunity in the Indian Pharmaceutical Market - 2016; Market size, Market share, Market landscape, Market trend analysis, Growth drivers, Future opportunity, Future forecast

  • $ 5 750
  • Industry report
  • April 2016
  • by Feedback Business Consulting

This report provides an insight into the Indian Pharmaceutical current market scenario, structure and practices. In depth market scenario includes; - Current market size estimates, including domestic market, ...

Omega 3 PUFA Market: Type (DHA (docosahexaenoic acid), EPA (eicosapentaenoic acid), ALA (Alpha-linoleic acid)) Source (Marine, Plant) Form (Oils, Capsules, Powder) Application (Dietary Supplements, Pharmaceuticals, Infant Foods, F&B)-Forecast(2015-2020)

Omega 3 PUFA Market: Type (DHA (docosahexaenoic acid), EPA (eicosapentaenoic acid), ALA (Alpha-linoleic acid)) Source (Marine, Plant) Form (Oils, Capsules, Powder) Application (Dietary Supplements, Pharmaceuticals, Infant Foods, F&B)-Forecast(2015-2020)

  • $ 5 250
  • Industry report
  • February 2016
  • by Industry ARC

Omega-3 fatty acids are polyunsaturated fatty acids which have potential health benefits and are essential for increasing metabolic rate. Omega-3 PUFA ingredients are used to manufacture products that ...


ref:plp2013

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.