Biotech Values

[DewDiligence]

Takeda is the latest Big Pharma to announce a restructuring:

http://finance.yahoo.com/news/Takeda-Announces-Strategic-prnews-1460323959.html?x=0

…strategic measures to better align its global workforce and consolidate site operations in order to integrate legacy Nycomed operations, strengthen its presence in more than 70 countries, adapt to changing market conditions and maintain a focus on growth through innovation and culture…

I don’t have a problem with these cutbacks per se; however, to the extent that they become routine actions, the associated “non-recurring” costs that analysts typically remove from EPS calculations ought to be counted to some degree in valuation arithmetic.