Question

Hi. I am doing a case study competition on a pharmaceutical company. What indicators should I look at when evaluating the performance of the compnay?

Answer 1

U have to look at the kind of R&D expenditure the company is making..Because for a pharmaceutical company the single most growth indicator is the amount of R&D investment they are doing.Apart from that make sure the company is making return on its capital more than its cost of capital.Because if the ROC<Cost of Capital then all bets are off...