The Stealths are more productive in terms of sales per employee at $510,000 compared to Big Pharma at $459,000.
Not surprisingly, intellectual property capital gives the edge to Big Pharma (78.0 percent vs. 61.3 percent). In other words,
about 80 percent of a Big Pharma's income is driven by intellectual property and innovation compared to about two-thirds of
This 12-metric overview illustrates that the Stealths are worthy competitors and know how to conduct business.
STEALTH METRICS UP CLOSE
Revenue Teva is the giant in sales revenue at over $5 billion. This pales to Pfizer's $50 billion or GSK's $40 billion, but it's
worth noting that in terms of scrips, Teva is the world leader with some 400 million last year. But high prices often trump
high volume, which is one reason that Teva is moving fast to develop branded generics.
Enterprise Value to Sales This is arguably the most important metric: It shows how valuable a company's future prospects are: growth, profitability,
and innovation. And Celgene is at the head of the Stealth Pharma class for 2005. With its new IMiDs, it has a virtual exclusivity
for a rare form of cancer at a very low cost of production.
Gross Margin This metric is calculated by subtracting the cost of products sold from total sales. Note how strong Celgene and Allergan
are on pricing power—two small firms that make high-priced drugs for niche markets.
Profit/Sales, Sales/Assets, Profit/Assets These three charts, taken together, concern management of profit-to-sales ratio (margins) or sales-to-assets ratio (assets).
They are related because they result in a very important performance metric: return on assets. On that score, kudos to Endo
and Barr. Both are relatively strong in both margin and asset management, earning them a ranking of number one and two, respectively,
on profit per assets. It is difficult enough to do well on one of these metrics, but doing so on two is exceedingly rare and
truly makes a company a double threat.
Sales per Employee This metric is essentially a measure of productivity. Again, Endo's employees packed the most punch for 2005, with Barr coming
in at number four. Note the disparity between King at number three at $630,000 per employee and Mylan at number 10 at $420,000
per employee, an indication that the one-time proposed merger between the two might have resulted in quite a culture clash.