Biotech Values

[DewDiligence]

For many multinational companies (including those in the drug/biotech industry), the operating margin in emerging markets is as high as—or even higher than—the operating margin in developed markets such as the US. Although product prices and gross margins are generally lower in emerging markets, SG&A expenses are lower too. Moreover, income-tax rates in many emerging markets are lower than in the US and Europe, which gives a further boost to the net profit margin.