London School of Commerce
Ratio analysis and comparison of Celgene Corporation and Biogen Idec Inc.
Professor William Parrott
Financial Management and Analysis
Table of Contents
Presentation of the companies 3
Ratio analysis of the companies 5
Profitability ratios 5
Liquidity ratios 7
Efficiency ratios 9
Gearing ratios 11
Investment ratios 12
Ratio analysis strengths and weaknesses 14
Financial analysis involves the use of various financial statements, which perform several functions. Basics of financial analysis consist of a balance sheet and income statement. Income statement shows revenues and expenditures ...view middle of the document...
5 billion in 2001 to $103 billion in 2012. Worldwide biotech product sales grew 353% between 2001 and 2012, reaching $163 billion. (http://www.pharmatimes.com/article/13-11-14/Tufts_report_confirms_domination_of_biotech_products.aspx Kevin Grogan 2013)
Presentation of the companies
Celgene Corporation (Celgene) is a biopharmaceutical company with more than 5$ billion in revenues and it was founded in 1986. In 1987 Celgene offers shares of stock thorugh Initial Public Offering. From 2000 until 2013 Celgene made six big acquisitions: Signal Pharmaceuticals, Anthrogenesis, Pharmion, Gloucester pharmaceuticals, Abraxis BioScience and Avila Therapeutics and took their product portfolios, with tendency to become leader in oncology treatment therapies.
Celgene (NASDAQ:CELG) is specialized for therapies designed to treat cancer and inflammatory diseases. The Celgene’s product portfolio includes Revlimid, Vidaza, Thalomid, Pomalyst, Abraxane, Otezla and Istodax. The company also has several products at various stages of development for the treatment of hematological and solid tumor cancers. Core products are therapies for multiple myeloma, chronic lymphocytic leukemia, myelodysplastic syndrome, non-Hodgkin's lymphoma, and small cell lung cancer. Celgene distributes its products through its own sales organizations in 31 countries and has subsidiaries operating across the world. Headquarter of Celgene is in Summit, New Jersey. (https://www.celgene.com/about/)
Biogen Idec Inc. (Biogen Idec) is the world's oldest independent biotechnology company with more than $5 billion in revenues. It was founded in 1978 in Switzerland. In 1983 Biogen offers shares of stock through its Initial Public Offering, becoming a NASDAQ-traded firm. In 1985 IDEC Pharmaceutical is founded in USA. In 2003 Biogen and IDEC merge, creating Biogen Idec (NASDAQ:BIIB).
Biogen Idec Inc. is a biotechnology company that discovers, develop, manufacture and commercialize novel therapies for numerous diseases including neurodegenerative illnesses, autoimmune disorders such as multiple sclerosis, chronic lymphocytic leukemia, non-Hodgkin’s lymphoma, rheumatoid arthritis, Crohn’s disease; hemophilia, and psoriasis. Company core products are Avonex, Alprolix, Tysabri, Fampyra, Gazyva, Tecfidera and Rituxan. The company also has a broad spectrum of products in various stages of development. Biogen Idec has direct operations in 33 countries and a network of distributors in over 70 other markets on five continents. Biogen Idec is headquartered in Cambridge Massachusetts. (http://www.biogenidec.com/about_history.aspx?ID=5480)
Ratio analysis of the companies
Ratios numbers allow us to better understand the current financial position of the company and to compare it with competing firms. All ratio numbers can be classified into several groups of related financial ratios. This classification is not uniform and depends on the analyst. In this report, rational numbers will be grouped in: