EPISTEM AND NOVOZYMES

Financial Comparison between Epistem and Novozymes



Financial Comparison between Epistem and Novozymes

Introduction

Epistem is a biotechnology manufacturing company that markets its expertise in epithelial stem cells in the areas of oncology, gastrointestinal diseases and dermatological applications. Epistem develops innovative therapeutics and biomarkers and provides contract research services in the area of drug development to operating companies. The expertise of the group lies primarily in the regulation of adult stem cells in epithelial tissue, which includes the gastrointestinal tract, skin and hair follicles, breast and prostate. Epistem does not conduct research in the areas of embryonic stem cells or stem cell transplantation. Epistem operates three business segments: contract research services (contract research), Novel Therapies (Advanced Therapies), and Biomarkers (www.epistem.co.ukr).

As far as Novozymes is concern the company has been involved in the development, distribution, production and sales enzymes, micro-organisms and bio-pharmaceutical ingredient. It provides a series of industrial enzymes like, detergent enzymes, technical enzymes for the transformation of starch in to sugar, for food and beverage industries food enzymes and hence, feed enzymes for the use in animal feed. The focus of the company is also on the development of new biopharmaceutical and microorganisms ingredients for the purpose of delivery of drug and formulation and there for the chemical renewal. This company operated in the Europe, America and Asia Pacific with the headquartered in Bagsvaerd, Denmark and employs around 5,432 people. The company has increased their profit around 15.1% last year (www.novozymes.com/).

In this paper we will focus and compare the short term, medium term and long term potential of these two companies which will indicate the proper Stock Performance analysis.

Discussion

Bio-Technology Industry of UK

Biotechnology industry which is largely involved in the biotechnology processes, production of chemicals, materials and energy.

Revenue Growth ChartEmployment Growth Chart

For the above graph, we can see the industry Revenue Growth Chart and Employment Growth Chart we clearly see the status of the biotechnology manufacturing companies. The revenue has been increase from last five years and the employment rate has been reducing. Despite this, the UK Pharmaceutical Industry is a significant contributor to the overall economy. Employing roughly 640,000 people, the pharmaceutical manufacturing industry generates an annual output figure in excess of £190 billion. In 2010 it generated an estimated trade surplus of £70 billion and invested £27 billion into R&D which represented about 10% of the total R&D bill for the region; in the same year it was thought to account for 3.5% of the total pound sterling manufacturing value added (Market publishers, 2012, pp. 1).

In 2011, the industry is expected to post sales of £980 billion, up from £75 billion five years earlier following average annual growth rates of 4.8%. During the year the industry will have to contend with key patent expiries and continued upward pricing pressures amid changing healthcare access and funding issues. At the same time, it will be the emerging pharmaceutical markets that will drive industry revenue. Growth from these markets is likely to exceed expected growth rates from the more mature markets, ...