And for good reason. Stealth Pharma is, by definition, an unwieldy grab-bag category because it includes any company that is not a Big Pharma. Firms specializing in biotech, franchises, orphan drugs, and generics are all in play. And when it comes to making comparisons, the diversity of stealth pharmas raises problems way more complex than apples vs. oranges. How do you rank the performance of an orphan drug superstar like Genzyme against that of a solid specialty pharma like Endo? You don't. Just sit back, relax, and enjoy our audit lite.
What the Metrics Mean
Teva, the generics king, and Novo Nordisk, the franchise giant, tower over all other stealths, with 2007 Revenues in the $8 billion–plus range. This is, of course, small change compared to the likes of Pfizer or GlaxoSmithKline, which raked in $48 billion or so last year.
Enterprise Value represents the value of a company in terms of what it might sell for. It's calculated as market capitalization (total number of shares outstanding multiplied by the price of the stock that day) plus liabilities minus cash. When EV goes up, shareholder value has been created; when EV goes down, shareholder value is destroyed. As a surrogate for shareholder value, EV is arguably the most crucial performance metric.