Financial Analysis and Comparison of Eli Lilly and Bristol-Myers Squibb

Financial Analysis and Comparison of Eli Lilly and Bristol-Myers Squibb

Muyang Hu

December 5th 2014

Introduction

Pharmaceutical companies are big players in healthcare industry. Every year, pharmaceutical companies generate over hundred billions of revenues globally (Statista, 2014). From an investor standpoint, investors favor pharmaceutical industry over many other industries due to the fact that pharmaceutical companies will basically always be in need and they are relatively “safe” investments to a point (Medisan, 2009). With that being said, coupled with my two years’ work experience in Eli Lilly and Company, which is also one of the companies that I will do the analysis on, a thorough financial analysis and comparison on two pharmaceutical companies, Eli Lilly and Bristol Myers Squibb, will be conducted in this paper in order to further pursue any potential investment opportunities about $10,000 that I earned over my summer job either on one or both companies.

Financial Analysis of the Company

Under this section, the financial analysis of these two companies will be conducted individually. Each analysis will include company overview, intellectual property profiles, growth and acquisitions, historical financial performance, and comparison of competitors. The comparison between Eli Lilly and Bristol Myers Squibb will come in after all the individual assessments are conducted.

1 Company Overview

1.1 Eli Lilly and Company

Eli Lilly and Company was founded in 1876, and started off their business in Insulin manufacturing. In fact, it was the first company which put Insulin into mass production (Lilly, Heritage, 2011). After over one hundred years of operations, Eli Lilly and Company has now grow into a gigantic company with over $20 billion sales per year with 37,925 employees all over the globe. Currently, Lilly has totally 14 board of directors. The CEO John C. Lechleiter, Ph.D. has served in Lilly for over 35 years. He has extensive experience...