Analysis Of Sip An Pharmaxis

319 WordsSep 17, 20102 Pages
Accounting Analysis of Sigma and Pharmaxis. This accounting analysis is to identify key areas that may have an impact on the investment potential of Sigma Ltd and Pharmaxis Ltd. Intangible assets Sigma and Pharmaxis are biotechnology companies and their revenues rely heavily on intellectual properties which are part of their intangible assets. Sigma Ltd It can be observed that the value of intangible assets for sigma in the 2006, 2007 and 2008 but a drop in 2009.This can pose a risk for the future of the company. Investors looking at investing in Sigma have to make sure that the company has a going concern and that it will still be competitive in the future. The pharmaceutical segment of sigma experienced a decline of 5.6%; this can be linked to competition and lack of new intellectual property coming in from research and development. Pharmaxis Ltd Pharmaxis has a gradual decline in intangible assets over the years 2006 to 2009, although there is a marked increase in research and development costs over the same period. The company has disclosed the increased costs for R& D especially for the year 2009 as clinical trials. This might bring future revenue to the company but can have a negative effect if they do not pass the clinical trials and the future competitiveness of the company will not be guaranteed. Profit A company has to be making profit or seem to have the potential to make profit in the future if it is not currently doing so, if investors are to have interest in it. Sigma Sigma’s profit index is gradually increasing over the four years and this will be attractive to potential investors. Pharmaxis Pharmaxis has been making losses for the four years but it can be observed that their losses have gradually declined hence it can be assumed that they will be making a profit in the

More about Analysis Of Sip An Pharmaxis

Open Document