Finance

Finance
In business, a company or firm is either moving forward or backwards. It is almost impossible to have a firm within an industry that has been in the same financial position for more than one trading period. The competition that exists within industries is important as it ensures that firms come up with new ways of staying afloat in the industry. One of the key aspects that shape effective growth in firms is ensuring that a company is able to minimize the expenses that are involved in production while ensuring that the revenue generated from the final commodity is of high quality. With this in mind, companies have to balance between the productions of quality commodities through the use of fairly priced materials. Due to the nature of competition, the various firms in various industries have attached so much importance in financial forecasting. Company`s today are able to analyze their stability and future through evaluating their financial positions. This kind of analysis is one of the most dependable means of forecasting in business. The aim of this paper is to forecast the financial stability of Theravance - a biopharmaceutical company that has its headquarters in South San Francisco. (Schinasi 2005, p. 150).
Some of the important aspects to take into consideration with regards to the financial analysis include market capitalization, the company`s past growth rate, the company`s returns, and sales. Theravance is one of the firms in the biomedical industry that is involved with the sale, creation, development, and improvement of drugs. Currently, one of the main challenges that the company is facing is with regards to the share price. The company has experienced a number of expenses that have translated to a loss per share of the company`s stock listing. The company has invested so much in the development of a drug through extensive studies. As these investments take place, the company is also engaged in the active campaign of some of its brands in the market. The earnings per share have shown improvement with regards to the various trading periods. Each quarter presents the company with a marginal growth of the earnings per share. The revenue estimates can also be used to project the company`s future with regards to financial stability. (Murray & Johnston 2010, p.56).
The company is also set to expand through collaborations. The company is looking to engage in active collaborations with other top names in the industry. Some of these firms include LAMA, Glaxo, and MBa. These collaborations will help the company merge with other companies in a profitable fashion as each firm will be looking to get actively involved with the different products being offered by Theravance. The company has conducted effective market research to ensure that the collaborations and other development and expansion endeavors will profit the company. The company has also been associated with extensive studies on some of the important medical conditions ...