Pharmaceutical Industry in United States Assignment

Pharmaceutical Industry in United States - Assignment ExampleThe Company conducts business in virtually all countries of the world with the primary snap on products related to human health and well-being. The paper presents the financial ratio analysis of Johnson & Johnson for the ago three financial years and highlights its financial outlook. The ratios presents the companys financial outlook is strengthened and is able to manage its finances prudently. The ratio analysis shows that the company has enough liquid assets through which it can pay collide with its liabilities and also can finance its operation for the foreseeable future. Moreover, the company is efficient enough, as represented by the ratios, to reduce its cash operating cycle and turn its sales into money quickly. The analysis shows that it would be prudent to invest in the company as the shareholders can earn significant return through not bad(p) gain, by disposing the shares later, and also through dividend. Int roduction to the Pharmaceutical Industry in United States The top of the worldwide pharmaceutical market is the US and it is expected to wrap up almost $345 billion in 2014. The second largest market is the Japanese market and then the European market including Germany France, and Chinese market (Market line industry guide, 2012). However, the planetary Federation of Pharmaceutical Wholesalers (IFPW) shows that growth rates in developed and developing markets based on their capability to recover from the economic crisis is significantly inconsistent. According to the look into of Urch Publishing (2012), the global pharmaceutical industry in 2014 is expected to be worth over $1 trillion with a 5% compound yearly growth rate. The pharmaceutical industry becomes more competitive. Major competitor companies Company HQ location Pharmaceutical Segment Sales Total revenue overlap of pharmaceutical segment $Million $Million % Johnson & Johnson US 25,400 67,224 38% Pfizer US 51,214 58,98 6 87% Novartis Switzerland 32,153 56,673 57% Merck US 40,601 47,267 86% Roche Switzerland 35,200 45,500 77% Sanofi-Aventis France 39,940 42435 94% AstraZeneca UK 43,143 43,143 100% GlaxoSmithKline UK 27,758 40,722 68% Eli Lily US 19,934 22,603 88% Source 2012 Annual Report of the companies As Table5 shows, the majority of the largest pharmaceutical companies not only focused exclusively on pharmaceutical products much(prenominal) as AstraZeneca and Sanofi-Aventis but also developed and manufactured other health care products. However, they still regard pharmaceutical partitions as the core of their business that put out over 50% of their incomes. However, Johnson & Johnson is an exception because its sales of pharmaceutical products are 38% of total sales. I will analyze GlaxoSmithKline firstly because it is significant competitor of AstraZeneca in the UK. GlaxoSmithKline (GSK) is a science-led global healthcare corporation researches and develops a wide range of innovative produc ts. GSK is Britains biggest drug maker (Hirschler, 2012). A balanced synergistic business, with dual growths, drivers supporting a core pharmaceutical R&D operation (2010 Annual report, p3). It has three primary areas of business including Pharmaceuticals, Vaccines and Consumer Healthcare. It has created more diversified business for past five years. Moreover, delivery of sustainable growth across portfolios is GlaxoSmithKlines objective. It has 87 manufacturing sites and R&D centers in the UK, USA, Spain, Belgium and China. Its purpose of R&D is to improve its tune products safely and efficiently to produce new medicines, which deliver improved treatments that