FIN 560 Securities Analysis Project Essay

$.57 per share in 1988. The stock carries an historical Price to Earnings ratio of 59, and there were

Some financial considerations we must take into account are that the purchase price of $6.6 billion, Merck would be paying a premium to acquire Medco, which had reported revenues of $2.2 billion in 1992. The revenue generated is 22% increase from 1991. This shows that Medco has seen tremendous growth in both revenue and earnings since coming into the market in 1984. Thus Merck will gain the ability to increase more market share as well.

Some of important components to be familiar with when deciding on investing in a company is its competitive advantages, valuation, dividend payouts and sustainability, and earnings consistency. Financial statements of Johnson & Johnson prove that their overall financial condition is good and is worthy of investing. For example, Johnson & Johnson has a market value of $211 billion and has over $67 billion in sales over the last 12 months. As of Dec. 31, 2012, Johnson & Johnson had $21.1 billion in cash and short-term investments, which can be easily converted into cash. Over the last 12 months, they paid out $6.61 billion in dividends, which works well with a free cash flow of $12.5 billion (Harry, 2015). Additionally, Johnson & Johnson has noticeably improved its profits over the last four years with a reported annual revenue of $74,331 million ending 2014. The current ratio of Johnson & Johnson is 1.90, which means the company can meet financial commitments short-term in the event of a disruption of its operations due to natural disaster etc. After reviewing the most recent balance sheet, it can be determined that the financial condition of Johnson & Johnson is a very good one and has prospects of growth over time. They have made several advantages towards growth in the coming years. For example, “in 2014 it had 20 new extensions approved and filed an additional 20. Also it started 23 Phase 3 trials and initiated eleven Phase 2 trials and currently is poised to yield ten potential new product filings between 2013 and 2017. With these developments, the company will be able to launch outstanding products in its pharmaceutical business in the days ahead” (GuruFocus,

Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its

Three positive observations that I made from the Mount Inn was the increase of the occupancy rate, rooms revenue, and beverage revenue. The occupancy rate jumped from 64.9 % in 2016 to 65.1% in 2017. This was a .20 increase in the rooms that were being occupied The hotel was able to get more customers into their doors. The rooms revenue jumped from $6,159,536 in 2016 to $6,414,875 in 2017.This was a $255,339 increase in revenue for rooms in the Inn. Another finding for the rooms revenue increased from being 70.77% to 71.72% out of the total revenue percentages. The last positive observation was the increase of the beverage revenue from $566,230 in 2016 to $637,400 in 2017. This was a $71,170 increase in revenue. The hotel is definitely growing revenue wise due to increase of customers coming into the hotel.

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

Merck is one of the biggest pharmaceutical companies in the world today. Although encountered with success, it still faces many problems today while trying to be the market leader competing against its competition. While being research and development driven company, Merck now has to go beyond R&D to stay competitive in the pharmaceutical industry. The main issue that seems to come up is that how far it can progress with the dual challenge of hitting peak annual financial performance while keeping the research pipeline full continued to weigh on senior management. Through the late 80s to early 90s, Merck was able to boast

Merck is a drug manufacture giant who brings an annual revenue of nearly fifty billion. Prior the Vioxx recall Merck was a highly valued company when it came to its ethical standard. It had consistently toped list for companies to work for (Lawrence & Weber, 2014). In addition to this they were well recognized as a socially responsible company who placed an importance on testing to provide the best quality pharmaceuticals. The Vioxx recall caused a huge blow for the company resulting in lawsuits and drop in company value.

Using Yahoo Finance we see that there was a slight drop in stock A prices in February of 2009 when it reached a low of about $78,000 per share. But by the end of 2009, prices rose back to above $100,000 per share and have remained,

Research and Development: Merck is a research-driven company that has a new research and development model incorporating its business strategy. Merck hopes to improve the success of is R&D and to reduce costs by focusing on therapeutic areas that have unmet medical needs, and scientific and commercial opportunity. It plans to develop products within these therapeutic areas that are highly valued by patients and doctors.

Merck was one of the largest pharmaceutical companies in the world. • Merck was about to lose patent protection of two of its best selling drugs, which had been a significant part of their $2 billion annual sales. • Merck began putting millions of dollars into research (up to $1 billion) and within three years, Merck was able to discover four powerful medications. • Profits weren’t all that Merck cared about; Merck’s founder believed that “medicine is for people. It is not for the profits.” • He also believed that following the “medicine is for people” philosophy would lead to profits and had yet to fail.• River Blindness is caused by parasitic worms, which can be found in

Since its humble beginning as a small drugstore, Merck has placed a large amount of importance on improving the health and well-being of its customers. As drug patents expire and genetic forms of their top products become available, Merck’s strategy is to do the unexpected; instead of raising the price of their older products in favor of patent protected new drugs, Merck focuses on reducing their cost in order to better compete with their generic counterparts. Additionally, Merck’s plan for growth now encompasses a much more aggressive pursuit of new drugs in their pipeline through extensive research. Merck became the second largest health care company in the world after the merger with Schering-Plough in 2009 and has

The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo.

Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.

GSK (GlaxoSmithKline) are a leading multinational pharmaceutical company. The company’s facilities include research and development sites, biopharmaceutical product centres and manufacturing sites for consumer and prescription products. GSK has headquarters in the United Kingdom and has offices and manufacturing sites in over 100 countries worldwide (with 43 Pharmaceutical and 14 Vaccine manufacturing sites in 26 countries). GSK’s main aim is “improve the quality of human life by enabling people to do more, feel better and live longer”. GSK is currently a merger of several companies which has occurred over the course of over one hundred years. The following is a brief history of the company which outlines significant events and key merger dates. GSK dates back to 1830 when John K Smith purchased a drug store in Philadelphia. John then passed on his business to his son, George and the company was renamed Smith & Company. Over the following years the company became known as Smith and Shoemaker and in 1865, Mahlon Kline joined as a bookkeeper. Mahlon took on various roles and responsibilities and over the coming years the company was renamed Smith, Kline & Company. Around the same time period, Thomas Beecham started his own company, the Beecham’s Pills Laxative Company in the United Kingdom. In 1859, Thomas launched a factory in St. Helens, the world’s first factory built exclusively for healthcare products. [1]