I just updated my main webpage to include a financial report of Johnson & Johnson so do check it out.

Johnson & Johnson Report

Also, its come to my attention that I didn’t update the Lubrizol Corporation link properly on the right hand side of the page. I have since corrected it.

Before investing in pharmaceutical companies, its important to know the pros and cons of the industry.

Big pharmaceutical companies typically have wide moats and attractive financial strength. Most of the global pharmaceutical  companies post Returns on Invested Capital of > 20%. They also have little debt on their balance sheets and plenty of free cash flow generation.

However, developing drugs is extremely costly and time consuming. Clinical testing phases of drugs can take upwards of a decade. Whats worst is that these expenses does not guarantee the success of a drug. A company can pump in a considerable amount of money ...