PLEASE SHOW DETAIL STEPS: PFIZER complete 10-K report can be found at https://s21.q4cdn.com/317678438/files/doc_financials/Annual/2016/2016-financial-report.pdf

Perform a keyword search of Pharmaceutical Companies using the search engine of your choice.

Your search will result in a list of companies that research and develop pharmaceutical products. Select three of these companies and obtain their 10-K reports using the SECs EDGAR system or going directly to the websites of the companies The pharmaceutical industry spends billions you choose.

Instructions

a. For each of the companies you selected determine:

1. Total 2016 R&D expense for the most current year.

2. Total 2016 R&D expense as a percentage of total operating costs and expenses.

3. Total 2016 2016 R&D expense as a percentage of net sales.

4. The percentage by which operating income would have increased had the entire R&D expenditure been recorded as an intangible asset instead of being charged to expense.

b. Using information from the 10-K reports, summarize briefly the kinds of drugs being researched and developed by each of these companies. To a potential investor, which company appears to be the most innovative and promising? Explain.

a Pfizer Inc. Financial Ann financial X .q4cdn.com /317678438/files/doc financials/Annual /2016/2016 financial-report.pdf Add to the favorites bar by selecting A, or by getting them from another browser. mport your favorites ANALYSIS OF THE CONSOLIDATED STATEMENTS OF INCOME Ended December 3 Change 2016 2015 2014 6/15 514 52,824 48,85 49,605 Cost of sal 2,329 9,648 9,577 19.3% of 9,75% Selling, informational and ad strative expel 4,809 4097 28.1% of 30.3% 28,45% 8,393 development expen 7,872 7690 of 5.75% 8,9% Amortization of intangible assets 3728 4039 of 7.7% 7,6% estructuring charges and certain acquisiti lated costs 2.4% of 0.5% 2,860 omeydeductions net ncome from continuing operations before provision fo 8965 2,240 taxes on income of 8.4% 24.7% Provision for taxes on income 3120 Effective tax rate 22.2% 25.5% ncome from continuing operations 7,229 6,975 9,119 14.3% of 3.7% 8.4% Discontinued operations-net of tax Net income before alocation to noncontrolling interests 7,246 6,986 9,168 14.3% of 3.7% 8.5% Less: Net income attributable to noncontrolling interests et income attributable to Pfizer Inc. 7,216 6,930 9,135 of revenues 8.45% Certain amounts and percentages may refect rounding adjustments. Calculation not meaningful. Compared to 2015, intemational for 2016 favorably impacted by $100 result of having selling day in international markets. In the U.S., there was no diference in selling days in 2016, compared to 2015. Total revenues in 2016 compared to 2015 nefect an operational increase of $5.5 billion, or 11% pentially offset by the unfavorable impact of Type here to search :22 PM 5/20/2017