(RARE) - Financial and Strategic Analysis Review - Mondobiotech

Mondobiotech Holding AG (RARE) - Financial and Strategic Analysis 

Review 

Reference Code: GDPH135831FSA 

Company Snapshot 

Key Information 

Mondobiotech Holding AG, Key Information 

Web Address www.mondobiotech.com 

Financial year-end December 

No. of Employees 24 

Swiss Exchange RARE 

Source: Annual Report, Company Website, Primary and Secondary 

Research, GlobalData 

Key Ratios 

Mondobiotech Holding AG, Key Ratios 

P/E 

Return on Equity (%) 

Debt/Equity (%) 

Operating Profit Margin (%) 

Dividend Yield 

Note: Above ratios are based on share price as of 09-Jun-2010 



Share Data 

Mondobiotech Holding AG, Share Data 

Price (CHF) as on 09-Jun-2010 

EPS (CHF) 

Market Cap (million CHF) 

Enterprise Value (million CHF) 

Shares Outstanding (million) 



Performance Chart 

Mondobiotech Holding AG (RARE) - Financial and Strategic 

Analysis Review 

NA 

-21.50 

0.60 

-88.10 

NA 

87.0 

-0.23 

4,708 

4,704 

Mondobiotech Holding AG, Performance Chart (2006 - 2009) 

Source: Company Annual Report 

GlobalData 

54 

Company Overview 

Publication Date: JUN 2010 

Mondobiotech Holding AG (Mondobiotech) is a 

Switzerland based biotechnology company engaged in the 

discovery and development of product candidates for the 

treatment of rare and abandoned diseases. Mondobiotech 

focuses mainly on discovering treatments for rare and 

unmatched medical needs. With rights to more than 300 

medicinal product candidates, the company focuses on 

advancing its portfolio of pipeline products either in-house 

or in collaboration with its business partners. 

Mondobiotech nurtures its collaboration with various 

pharmaceutical companies for the development and 

commercialization of its product candidates. 

SWOT Analysis 

Mondobiotech Holding AG, SWOT Analysis 

Strengths Weaknesses 

In-house Research Expertise 

Strong Intellectual Property 

Base 

Increasing Operating 

Expenses 

Opportunities Threats 

Strategic Agreements and 

Collaborations 

Business Expansion 

Activities 

Uncertain R&D Outcomes 

Government Regulations 



Financial Performance 

The company reported revenues of (Swiss Francs) CHF 

13.74 million during the fiscal year ended December 2009, 

a decrease of 5.53% from 2008. The operating loss of the 

company was CHF 12.11 million during the fiscal year 

2009, as compared to an operating loss of CHF 9.17 

million during 2008. The net loss of the company was 

CHF 12.22 million during the fiscal year 2009, as 

compared to a net loss of CHF 9.40 million during 2008. 


Source : www.globalmarketsandcompanies.com Page 1

Table of Contents 

Table of Contents............................................................................................................................................................................................................ 2 

List of Tables................................................................................................................................................................................................................... 3 

List of Figures.................................................................................................................................................................................................................. 3 

Mondobiotech Holding AG - Key Facts ........................................................................................................................................................................... 4 

Mondobiotech Holding AG - Business Description ......................................................................................................................................................... 4 

Mondobiotech Holding AG - Corporate Strategy............................................................................................................................................................. 5 

Mondobiotech Holding AG - Major Products and Services ............................................................................................................................................. 5 

Mondobiotech Holding AG - History................................................................................................................................................................................ 7 

Mondobiotech Holding AG - SWOT Analysis................................................................................................................................................................ 10 

SWOT Analysis - Overview .................................................................................................................................................................................... 10 

Mondobiotech Holding AG - Strengths ................................................................................................................................................................... 10 

Strength - In-house Research Expertise .......................................................................................................................................................... 10 

Strength - Strong Intellectual Property Base.................................................................................................................................................... 10 

Mondobiotech Holding AG - Weaknesses.............................................................................................................................................................. 10 

Weakness - Increasing Operating Expenses ................................................................................................................................................... 10 

Mondobiotech Holding AG - Opportunities ............................................................................................................................................................. 11 

Opportunity - Strategic Agreements and Collaborations.................................................................................................................................. 11 

Opportunity - Business Expansion Activities.................................................................................................................................................... 11 

Opportunity - Changing Demographics............................................................................................................................................................ 11 

Mondobiotech Holding AG - Threats ...................................................................................................................................................................... 11 

Threat - Uncertain R&D Outcomes .................................................................................................................................................................. 11 

Threat - Government Regulations.................................................................................................................................................................... 11 

Threat - Competitive Pressures ....................................................................................................................................................................... 12 

Mondobiotech Holding AG - Key Competitors .............................................................................................................................................................. 12 

Mondobiotech Holding AG - Key Employees ................................................................................................................................................................ 13 

Mondobiotech Holding AG - Key Employee Biographies.............................................................................................................................................. 14 

Mondobiotech Holding AG - Company Statement ........................................................................................................................................................ 15 

Mondobiotech Holding AG - Locations And Subsidiaries.............................................................................................................................................. 16 

Head Office............................................................................................................................................................................................................. 16 

Other Locations & Subsidiaries .............................................................................................................................................................................. 16 

Mondobiotech Holding AG - Financial Ratios ............................................................................................................................................................... 18 

Financial Ratios - Capital Market Ratios................................................................................................................................................................. 18 

Financial Ratios - Annual Ratios............................................................................................................................................................................. 18 

Financial Ratios - Interim Ratios............................................................................................................................................................................. 19 

Financial Ratios - Ratio Charts ............................................................................................................................................................................... 20 

Appendix ....................................................................................................................................................................................................................... 21 

Methodology ........................................................................................................................................................................................................... 21 

Ratio Definitions...................................................................................................................................................................................................... 21 

About GlobalData ................................................................................................................................................................................................... 26 

Contact Us .............................................................................................................................................................................................................. 26 

Disclaimer............................................................................................................................................................................................................... 26 





List of Tables 

Mondobiotech Holding AG, Key Information .................................................................................................................................................................. 1 

Mondobiotech Holding AG, Key Ratios.......................................................................................................................................................................... 1 

Mondobiotech Holding AG, Share Data ......................................................................................................................................................................... 1 

Mondobiotech Holding AG, SWOT Analysis .................................................................................................................................................................. 1 

Mondobiotech Holding AG, Key Facts ........................................................................................................................................................................... 4 

Mondobiotech Holding AG, Major Products and Services ............................................................................................................................................. 6 

Mondobiotech Holding AG, History ................................................................................................................................................................................ 7 

Mondobiotech Holding AG, Key Employees ................................................................................................................................................................ 13 

Mondobiotech Holding AG, Key Employee Biographies .............................................................................................................................................. 14 

Mondobiotech Holding AG, Other Locations................................................................................................................................................................ 16 

Mondobiotech Holding AG, Subsidiaries...................................................................................................................................................................... 16 

Mondobiotech Holding AG, Ratios based on current share price ................................................................................................................................18 

Mondobiotech Holding AG, Annual Ratios................................................................................................................................................................... 18 

Mondobiotech Holding AG, Interim Ratios ................................................................................................................................................................... 19 

Currency Codes ........................................................................................................................................................................................................... 21 

Capital Market Ratios................................................................................................................................................................................................... 21 

Equity Ratios ................................................................................................................................................................................................................ 22 

Profitability Ratios......................................................................................................................................................................................................... 22 

Cost Ratios................................................................................................................................................................................................................... 23 

Liquidity Ratios ............................................................................................................................................................................................................. 24 

Leverage Ratios ........................................................................................................................................................................................................... 24 

Efficiency Ratios........................................................................................................................................................................................................... 25 

List of Figures 

Mondobiotech Holding AG, Performance Chart (2006 - 2009) ...................................................................................................................................... 1 

Mondobiotech Holding AG, Ratio Charts ..................................................................................................................................................................... 20 





Mondobiotech Holding AG - Key Facts 

Mondobiotech Holding AG, Key Facts 

Corporate Address 

Das Kloster, Muergstrasse 

18, Stans, 6370, Switzerland 

Ticker Symbol, Exchange 

Telephone 

+41 840 200043 

No. of Employees 

Fax 

+41 840 200044 

Fiscal Year End 

URL 

www.mondobiotech.com 

Revenue (in USD Million) 

Industry 

Pharmaceuticals and 

Healthcare 

Revenue (in CHF Million) 

Locations 

Switzerland 

Source: Annual Report, Company Website, Primary and Secondary Research 

GlobalData 



RARE [Swiss Exchange] 


Source : www.globalmarketsandcompanies.com Page 4 

24 

December 

Mondobiotech Holding AG - Business Description 

Mondobiotech focuses on the research and development of product candidates by using known peptides and 

other immuno-modulating substances for use in the treatment of rare and neglected diseases. The company's 

pipeline products target indications such as Idiopathic Pulmonary Fibrosis, Pulmonary Arterial Hypertension, 

Sarcoidosis, Acute Respiratory Distress Syndrome, Methicillin-Resistant Staphylococcus Aureus in Cystic 

Fibrosis, Chronic Thromboembolic Pulmonary Hypertension, Chronic Beryllium Disease, Pseudomonas 

Aeruginosa in Cystic Fibrosis and Drug-Resistant Tuberculosis. Mondobiotech operates through two reportable 

business segments, Projects and Development Services. 

Through its Projects segment, the company licenses out different stages of development projects related to 

biological therapeutics for the treatment of rare and neglected diseases. This segment reported revenues of 

CHF 0.75 million for fiscal year 2009, which is 5.5% of the total revenue. 

Mondobiotech’s Development Services provides additional clinical development services to partners who 

specifically request the services in close connection with a licensing-out agreement. This segment reported 

revenue of CHF 13.13 million for fiscal year 2009, which is about 94.5% of the total revenue. 

During fiscal year 2009, the company spent CHF 20.14 million on its research and development activities, which 

is about 146.5% of the total revenue, compared to CHF 20.17 million spent in 2008. With no manufacturing 

capabilities, the company relies on third party manufacturers that offer contract manufacturing services. 

The company has entered into collaborations and partnerships with companies such as 23andMe, Inc., Biogen 

Idec, Intermune, Lung Rx, for the development and commercialization of its various products under 

development. 

Additionally, the company operates eight subsidiaries across Switzerland, Liechtenstein and the US. These 

include mondoBIOTECH AG, mondoGEN AG, Interferon Medical Use SA, Fast Take-off AG, Alps Air AG in 

Switzerland; mondoBIOTECH Laboratories AG in Liechtenstein; and also www.mondobiotech.com Inc and 

mondoBIOTECH US, Inc. in the US. 

Recently, the company entered into an exclusive agreement with WR Hambrecht + Co., a Silicon Valley 

financial services firm, under which Hambrecht acts as the exclusive placement agent for Mondobiotech’s 

securities. The company had a global strategic partnership agreement with Lung Rx LLC, a subsidiary of United 

Therapeutics Corporation, for the development of Aviptadil platform. The company started the development of 

its first medical product candidate against Extensively Drug-Resistant Tuberculosis (XDR-TB). 

12.7 

13.7

Mondobiotech Holding AG - Corporate Strategy 

Mondobiotech’s continuing success and growth is based upon its underlying business strategy. The company 

focuses on growing long-term shareholder value. Its strategic intent is to become the leading global company 

focused on discovering, developing and commercializing therapies for the treatment of rare and abandoned 

diseases. Its operating model focuses on expanding its product portfolio while maintaining strong financial 

discipline. Its policy is to first dedicate a share of the annual revenues toward growing operating income and 

then use the remainder to grow the business, mainly through R&D. Additionally; Mondobiotech nourishes 

collaborations with third parties as a critical part of its business strategy. The company also focuses on 

attracting, retaining, and motivating its employees to drive its operational excellence and scope of business 

operations. 

Mondobiotech Holding AG - Major Products and Services 





Mondobiotech provides therapies for rare and neglected diseases by modifying previously known peptides. The 

company's pipeline products include the following: 

Mondobiotech Holding AG, Major Products and Services 

Pipeline Products: 

DasKloster 1001-01-Idiopathic Pulmonary Fibrosis 

DasKloster 1001-01-Pulmonary Arterial Hypertension 

DasKloster 1001-02-Sarcoidosis 

DasKloster 1001-03-Idiopathic Pulmonary Fibrosis 

DasKloster 1001-04-Acute Respiratory Distress Syndrome 

DasKloster 0247-01-Chronic Thromboembolic Pulmonary Hypertension 

DasKloster 0182-01-Sarcoidosis 

DasKloster 0381-01-Methicillin-Resistant Staphylocaccus Aureus in Cystic fibrosis 

DasKloster 0210-01-Chronic Beryllium Disease 

DasKloster 0249-01-Drug Resistant Tuberculosis 

DasKloster 0274-01-Pseudomonas Aeruginosta in Cystic Fibrosis 

Brands: 

mondoBIOTECH 


GlobalData 





Mondobiotech Holding AG - History 

Mondobiotech Holding AG, History 

2009 Contracts/Agreements 

2009 Management Changes 


2009 Corporate Changes/Expansions 



2008 Official Trials/Tests 

2008 Corporate Awards 


2007 Research and Development 


2007 Commercial Operation 



In January 2009, Mondobiotech AG and 23andMe, Inc. entered 

into a collaboration agreement for the advancement of research on 

rare diseases. 

In March 2009, the company joins Mr. Michael A. Keller and Mr. 

Thomas Cerny to its Board. 

In September 2009, the company concluded a long-term 

cooperation with Bachem AG. 

In November 2009, the company expanded its operations in 

Silicon Valley. 

In November 2009, the company appointed Ms. Sandra Senti as 

its first Chief Information Officer 

In December 2009, the company appointed Mr. Evelyn Strauss, 

Ph.D. as a Director of Health Information Services. 

In May 2008, mondoBIOTECH announced the data from the 

clinical trials of “AVICUTE - Aviptadil in Pulmonary Hypertension” 

In December 2008, Mondobiotech AG was awarded "The Swiss 

Innovation Award 2008,” by the Central Swiss Chamber of 

Commerce in the monastery dasKloster in Stans. 

In June 2007, the company has been awarded as the Best 

Innovator 2007 in Switzerland for its innovative business model. 

In October 2007, the company's subsidiary, mondoBIOTECH, 

announced that its product, Aviptadil, for the treatment of 

Sarcoidosis has been granted an Orphan Medicinal Product 

Designation (OMPD) by the European Commission. 

In November 2007, mondoBIOTECH was selected as the 

Technology Pioneer 2008 by the World Economic Forum. 

In December 2007, mondoBIOTECH signed a transatlantic 

strategic partnership agreement with Lung Rx, a wholly-owned 

subsidiary of United Therapeutics Corporation, for the 















development of drugs for patients with rare diseases. 

In December 2007, the company's subsidiary, mondoBIOTECH 

AG entered into a new business alliance with IFE Europe GmbH, 

for clinical study management of trials emerging from 

mondoBIOTECH's product pipeline. 

In March 2006, the company signed a new collaboration 

agreement with Bachem AG for the development of new projects 

deriving from the Bachem Peptide Library. 

In April 2006, the company had a business alliance with Quintiles, 

a pharmaceutical services organization, for clinical study 

management of trials emerging from the company's product 

pipeline. 

In July 2006, the company signed a collaborative development 

and manufacturing agreement with Nebu-Tec GmbH for the 

development and patient support of mondoBIOTECH´s products 

used for the treatment of fatal and rare lung diseases. 

In September 2006, the company's subsidiary, mondoBIOTECH 

AG entered into an exclusive collaboration and license agreement 

with Biogen Idec for the development, manufacture and 

commercialization of its product, Aviptadil, a clinical compound for 

the treatment of Pulmonary Arterial Hypertension (PAH). 

In September 2006, the company's subsidiary, mondoBIOTECH 

AG, announced that its product, Aviptadil, for the treatment of 

Acute Lung Injury (ALI) has been granted an Orphan Medicinal 

Product Designation (OMPD) by the European Commission. 

In April 2005, the company's product Aviptadil, for the treatment of 

Pulmonary Arterial Hypertension, was granted Orphan Drug 

Designation by the United States FDA. 

In April 2005, the company signed a collaboration agreement with 

Bachem AG for the development and production of the company's 

Thymopentin project. 

In October 2005, the company received the Swiss Life Sciences 

Prize for the year 2005. 

In July 2004, the company had a collaboration agreement with 

Bachem AG, for production and supply of the company's lead 

compound, Aviptadil. 




2000 Incorporation/Establishment 


GlobalData 



In March 2003, the company entered into an agreement with 

InterMune, for distribution of the company's product, AMPHOTEC 

in Switzerland. 

The company was incorporated in the year 2000. 



Mondobiotech Holding AG - SWOT Analysis 

SWOT Analysis - Overview 

Mondobiotech holding AG (Mondobiotech) is engaged in the discovery of medical product candidates for the 

treatment of rare and neglected diseases. The company focuses on developing its products under development 

either in-house or in collaboration with its business partners. The company leverages its in-house research 

expertise to advance its portfolio of pipeline products. However, increasing competitive pressures and stringent 

government regulations can be a major setback for the company’s growth and profitability in the future. 

Mondobiotech Holding AG - Strengths 

Strength - In-house Research Expertise 

Mondobiotech’s expertise in research activities has provided it a growing pipeline of medicinal product 

candidates for rare and neglected diseases. Recognized as one of the leading, independent, Internet-based 

biotech research companies in Switzerland, Mondobiotech’s research activities focus on discovering drugs for 

patients suffering from some of the major and debilitating diseases. Its pipeline comprises multi-dimensional 

projects targeting diseases such as Idiopathic Pulmonary Fibrosis (IPF), Pulmonary Arterial Hypertension 

(PAH), Sarcoidosis, Acute Respiratory Distress Syndrome (ARDS), and Chronic Thromboembolic Pulmonary 

Hypertension, among others. The strong in-house research expertise has provided the company with a global 

top ranking position in patent inventions for the year 2009, demonstrating the ability of its innovative, Internet 

and scientific community based research approach. The company’s commitment to research activities is evident 

from its R&D investment pattern. During fiscal year 2009, the company spent CHF 20.15 million on its research 

activities, which is about 146.65% of the total revenue, compared to CHF 20.17 million spent during 2008. 

Additionally, the company nurtures collaboration with its various business partners including, 23andMe, Inc., 

Biogen Idec, InterMune and Lung Rx, to accelerate the development of its various product candidates. 

Strength - Strong Intellectual Property Base 

Securing patent rights is important for the development of the company’s product portfolio. Strong patent 

portfolio creates market exclusivity for the proprietary drug candidates giving the company a competitive edge 

over its competitors. Its patents, patent applications, and licensed patent rights cover several compounds, 

pharmaceutical formulations and methods of use. Mondobiotech owns rights to more than 300 medicinal 

product candidates that can either be developed in-house or licensed to its business partners for further 

development. Additionally, as per the Derwent World Patents Index (DWPI) database, that consolidates 41 

major patent issuing authorities worldwide; Mondobiotech was recognized as inventions patent champion in 

2009 in the pharmaceutical industry. 

Mondobiotech Holding AG - Weaknesses 

Weakness - Increasing Operating Expenses 

The company's increasing operating expenses can be attributed to its high cost operating model. 

Mondobiotech’s operating expenses increased during 2006-2009 at a compound annual growth rate (CAGR) of 

44.21%. In fiscal 2009, the company's operating expenses increased 9.03% to CHF 25.85 million, compared to 

CHF 23.71 million in fiscal 2008. The increasing operating expenses had adverse impact on the company's 

profits, as well as bottom line. The company's operating loss was CHF 12.11 million in fiscal 2009, compared to 

CHF 9.17 million in 2008. It recorded a net loss of CHF 12.22 million in fiscal 2009, as against a net loss of CHF 

9.4 million in 2008. Mondobiotech’s operating margin was -88.13% for fiscal year 2009. This was below the 

Pharmaceuticals & Healthcare sector average* of 4.09%. A lower than sector average* operating margin 

indicates the inefficient cost management and weak pricing strategy by the company. Moreover, the significant 

decline in the company's cash levels had adversely impacted its liquidity position. In fiscal 2009, the company's 

cash level drastically decreased to CHF 4.63 million, compared to CHF 14.09 million in 2009. The company's 

current ratio was 1.07 at the end of fiscal year 2009. This was below the Pharmaceuticals & Healthcare sector 

average* of 3.62. A lower than sector average* current ratio indicates that the company is in a weaker financial 

position than other companies in the sector. Additionally, the company's return on equity (ROE) was -21.5% at 

the end of fiscal year 2009. This was below the Pharmaceuticals & Healthcare sector average* of 5.9%. A lower 

than sector average* ROE indicate that the company has not been using the shareholders' money as efficiently 

as other companies in the sector and that it is generating low returns for its shareholders compared to other 





companies in the sector. Under these situations, the company's increasing operating expenses, if not curtailed, 

can have adverse impact on its business operations and financial position in the future. 

Mondobiotech Holding AG - Opportunities 

Opportunity - Strategic Agreements and Collaborations 

As a part of business strategy, the company establishes collaborations and agreements with other companies to 

enhance its product portfolio and bring non-dilutive capital into the company. During fiscal year 2009 and early 

2010, the company entered into various collaborations, to sustain its inorganic growth. In April 2010, the 

company entered into an exclusive agreement with the financial services firm WR Hambrecht + Co., 

establishing Hambrecht as the exclusive placement agent for its securities. Leveraging the significant 

experience of WR Hambrecht in Silicon Valley financing, the company focuses on the material expansion of its 

therapeutic pipelines, to discover and develop treatment for people suffering from rare diseases. In February 

2010, Mondobiotech formed a global strategic partnership agreement with Lung Rx LLC, a subsidiary of United 

Therapeutics Corporation, to develop Aviptadil platform for a range of indications, including, PAH, Sarcoidosis, 

Idiopathic Pulmonary Fibrosis (IPF) and Acute Respiratory Distress Syndrome (ARDS). Other significant 

agreements include, a long-term cooperation agreement with Bachem (September 2009), to develop peptides 

to fight rare diseases. According to the terms of the agreement, Bachem received access to the comprehensive 

and growing portfolio of Mondobiotech’s development projects for the treatment of rare diseases. Additionally, in 

January 2009, the company formed collaboration with 23andMe, Inc., to advance research in rare diseases. 

This collaboration not only complements its genetics and bioinformatics expertise, but also helps accelerate its 

various projects under development. 

Opportunity - Business Expansion Activities 

The company’s various business expansion initiatives not only complement its geographical presence, but also 

drive its organic growth. In November 2009, Mondobiotech established its new subsidiary in Silicon Valley, Palo 

Alto. Operating through this new facility, the company will oversee its health information and information 

technology services. Business expansions such as these enable the company to further accelerate its product 

development activities. 

Opportunity - Changing Demographics 

The increasing number of people aged above 65, who consume disproportionately more medicines and are 

more prone to chronic diseases, holds significant market potential for the company. People above 65 are the 

single largest group of customers for pharmaceutical companies as they consume three times more prescription 

drugs per head than those aged below 65. According to the United Nations Population Division, people aged 60 

were projected to account for 22% of the total world population by 2050, up from 11% in 2007. Globally, people 

aged 80 years and older, are projected to increase by 233% between 2008 and 2040. In the US, the Census 

Department projected that the 65 and older segment of the population will grow from 38.7 million in 2008 to 72.1 

million by 2030, when all of the baby boomers (Americans born from 1946 through 1964) will be 65 and older. 

Mondobiotech Holding AG - Threats 

Threat - Uncertain R&D Outcomes 

Adverse or inconclusive results from preclinical testing or clinical trials may substantially delay, or halt the 

development of the company's various product candidates, consequently affecting its timeliness for profitability. 

The outcome of clinical trials is always a subject of uncertainty. It also requires a huge amount of investment 

and a great deal of time to successfully launch a new product after the discovery of a new compound. 

Moreover, it may be necessary to discontinue clinical development if the effectiveness of a drug is not proven as 

initially expected, or if serious adverse effects arise. In addition, pharmaceuticals are subject to legal restrictions 

in each country, and authorization from local regulatory authorities is a prerequisite for a product launch in each 

country. It is difficult to accurately foresee when approvals for a new product can be obtained. 

Threat - Government Regulations 

The company operates in a highly regulated industry, where a variety of statutes and regulations are in place for 

the testing, manufacture and sale of therapeutic products. The company has to obtain regulatory approvals from 

regulatory authorities in the respective countries before commercializing the products. Failure to comply with the 

present or future regulations related to clinical, laboratory and manufacturing practices may result in delayed 

approval of drugs, product recalls, and cancellation of permission to produce or sell the drugs. With products 





still under development, the company faces a potential threat from its competitors, which have obtained 

regulatory approvals for marketing. The company’s financial position can also be adversely affected due to its 

inability to obtain or retain regulatory approvals on a timely basis, as this will delay the commercialization of its 

products. 

Threat - Competitive Pressures 

The company’s markets are characterized by intense competition, evolving industry standards and business 

models. The company’s products face competition from new and innovative products of its competitors. 

Competitors’ products may make the company’s products obsolete and non-competitive, even before the 

company is able to recover the costs associated with any such product’s research, development and 

commercialization efforts. The company’s competitors include major pharmaceutical, and biotechnology 

companies, whose financial, technical, and marketing resources are significantly greater than those of the 

company. 

NOTE: 

* Sector average represents top companies within the specified sector 

The above strategic analysis is based on in-house research and reflects the publishers opinion only 

Mondobiotech Holding AG - Key Competitors 

The following companies are the major competitors of Mondobiotech Holding AG: 

Amdipharm Plc 

Aeirtec Limited 

Immundiagnostik AG 

LaborMed Pharma SA 

ORION Clinical Services Limited 





Mondobiotech Holding AG - Key Employees 

Mondobiotech Holding AG, Key Employees 

Name Job Title Board Level Since Age 

Fabio Cavalli Chief Executive Officer, 

Director, Chief Business 

Architect, Founder 

Executive Board 

2007 55 

Vera Cavalli Director, Chief Pharmacy 

Officer, Founder 

Executive Board 

42 

Prinz Michael von und zu 

Liechtenstein 

Chairman, Founder Executive Board 



2007 59 

Dr. Robert Huber Director Non Executive Board 2008 73 

Giovanni Cusmano Vice Chairman Non Executive Board 2008 48 

Cristoph Rentsch Director Non Executive Board 2007 51 

Hans Rudolf Schnieper Director Non Executive Board 2007 56 

Michael Alan Keller Director Non Executive Board 2009 65 

Dr. med. Thomas Cerny Director Non Executive Board 2009 58 

Dr. habil. Dorian Bevec, Chief Scientific Officer, Co- Senior Management 

53 

Ph.D. 

Founder 

Patrick Pozzorini Chief Financial Officer, Founder Senior Management 

Sandra Senti Chief Information Officer Senior Management 2009 

Dr. Evelyn Strauss, Ph.D. Director, Health Information 

Services 

Senior Management 

2009 


GlobalData 


Source : www.globalmarketsandcompanies.com Page 13 

43

Mondobiotech Holding AG - Key Employee Biographies 

Mondobiotech Holding AG, Key Employee Biographies 

Fabio Cavalli 

Job Title: Chief Executive Officer, Director, Chief 

Business Architect, Founder 

Board Level: Executive Board 

Since: 2007 

Age: 55 

Vera Cavalli 

Job Title: Director, Chief Pharmacy Officer, 

Founder 


Age: 42 

Prinz Michael von und zu Liechtenstein 

Job Title: Chairman, Founder 


Since: 2007 

Age: 59 

Dr. habil. Dorian Bevec, Ph.D. 

Job Title: Chief Scientific Officer, Co-Founder 

Board Level: Senior Management 

Age: 53 

Patrick Pozzorini 

Job Title: Chief Financial Officer, Founder 

Board Level: Senior Management 

Age: 43 


GlobalData 



Mr. Cavalli has been the Chief Executive Officer, the Chief 

Business Architect, a Director and one of the Founders of 

Mondobiotech Holding AG since 2007. In the past, he has founded 

several successful start-ups in Information Technology, consumer 

services and sports goods fields. 

Ms. Cavalli is the Chief Pharmacy Officer, a Director and one of 

the founders of Mondobiotech Holding AG. She has five years of 

pharmacy business experience in various pharmacies. She 

worked in the sales department for the Swiss market of the 

pharmaceutical company Searle SA (Monsanto group), from 1999 

to 2000. 

Mr. Liechtenstein is the Chairman and one of the founders of 

Mondobiotech Holding AG. He served as the Chairman of 

INDUSTRIE- UND FINANZKONTOR ETABLISSEMENT from 

1987. He also serves as the Chairman of BIOPHARMAinvest 

AKTIENGESELLSCHAFT. 

Mr. Dorian Bevec is the Chief Scientific Officer and Co-Founder of 

Mondobiotech Holding AG. Prior to this, he worked as the Head of 

Molecular Biology and also project team leader at the Sandoz 

Research Institute in Vienna for ten years and at Axxima AG in 

Martinsried, Germany, for two years. 

Mr. Pozzorini is the Chief Financial Officer and one of the founders 

of Mondobiotech Holding AG. Prior to this, he worked as the Chief 

Financial Officer for a start-up company active in the field of the 

web based enterprise management. From 1995 to 2000, he 

worked for PricewaterhouseCoopers AG, and from 1992 to 1995 

for Fidinam Group. 



Mondobiotech Holding AG - Company Statement 

A joint statement by Mr. Prinz Michael von und zu Liechtenstein, the Chairman and Mr. Fabio Cavalli, the Chief 

Executive Officer of Mondobiotech Holding AG is given below. The statement has been taken from the 

company's 2009 Annual Report. 

Since inception, the goal of the Company was to change the world of medicine for patients suffering from rare 

and neglected diseases. It is this goal that continues to motivate our progress in research, marketing and 

unique business opportunities. 

It can be difficult to visualize the timeline of a company, though we have made great strides in our field, it has 

been a relatively short period of time and we are still a young company. Our growth and “education”, if you will, 

is still in its early stages. We have completed much, but we have much work ahead of us. mondoBIOTECH has 

visions that extend beyond short-term growth; our goal is to change the world of medicine for rare and 

neglected diseases. It is a significant goal that will take long-term dedication to complete. 

Though 2009 was a difficult year economically, we were still able to make great strides for our long-term 

business plan. We improved our search-and-match tool, a key instrument that is integral to our research and 

discovery method. Through improvements in our research process we were able to expand our field of defined 

diseases, further exploring the possibilities for future innovation in medicinal candidates. In 2009 we patented 

the corpus of our work from the last nine years, ensuring the profitability of our future medicinal pipeline. 

Additionally we made a huge step forward in our financial growth when we went public and became a listed 

company on the SIX Swiss Exchange. This step is only one rung on a long ladder to our ultimate goals, 

however it is crucial to our enduring financial growth and stability. We are very pleased with the advancements 

of mondoBIOTECH in 2009, and especially pleased with the hard work of investors, partners, management and 

staff. A particularly pleasing development of 2009 was the relationship mondoBIOTECH cultivated with 

Professor Michael A. Keller of Stanford University. Prof. Keller is an expert, innovator and pioneer in the field of 

internet publishing and original research methods. His expertise is a valuable asset to mondoBIOTECH, as we 

are constantly seeking to improve our search-and-match research model to find new medicinal candidates. The 

future of mondoBIOTECH will be greatly enhanced by a continuously improving system of informatics analysis. 

With the achievements of 2009 propelling us, we are pleased to enter 2010 with an even greater focus on our 

final goals and constantly improving tools and partnerships to reach them. Thus far in 2010 we have had the 

opportunity to establish an important relationship, in conjunction with our existing partnership with Biogen Idec, 

with Lung Rx, a wholly owned subsidiary of United Therapeutics. Experts in the field of pulmonary medicine, our 

partnership with LungRX brings us much closer to having one of our promising medicinal product candidates on 

the market where it can benefit patients suffering from pulmonary arterial hypertension and other devastating 

lung diseases. With Biogen Idec taking the helm of its financial progress and United Therapeutics leading the 

development process, we have the best team available to introduce our product to the market. We are looking 

forward to working towards this goal with our partners. 

2010 will be driven by an increase in our qualitative search capacity, the expansion of our international 

community of physicians and researchers committed to treating rare diseases, the increase of our licensing 

agreements, our continued commitment to our licensing partners to move forward on our joint development 

goals, and our search to find an international financial partner to facilitate the growth of the Company. We are 

convinced that continuing to implement our strategy in a coherent manner will generate profitable growth and, in 

so doing, will sustainably enhance mondoBIOTECH’s value. We will work and do our utmost to achieve this 

goal. 





Mondobiotech Holding AG - Locations And Subsidiaries 

Head Office 

Mondobiotech Holding AG 

Das Kloster 

Muergstrasse 18 

Stans 

ZIP: 6370 


Tel: +41 840 200043 

Fax: +41 840 200044 

Other Locations & Subsidiaries 

Mondobiotech Holding AG, Other Locations 


Campus Lugano 

Via Pasquee 23 

Gentilino 

Zip: CH-6925 


Tel: +41 840 200010 

Fax: +41 840 200011 


GlobalData 

Mondobiotech Holding AG, Subsidiaries 

mondoBIOTECH AG 

Clinical Department 

Mürgstrasse 18 

Zip: CH 6370 


Url: www.mondobiotech.com 

Interferon Medical Use SA 

Via Pasquei 

Collina d'Oro 




Campus Basel, Hardhof Basel 

Hardstrasse 52 

Basel 

Zip: CH-4052 


Tel: +41 840 200027 

Fax: +41 840 200028 

mondoGEN AG 

Clinical Department 

Mürgstrasse 18 

Stans 

Zip: CH 6370 


Tel: +41 840 200043 

Fax: +41 840 200044 

www.mondobiotech.com Inc 

P.O. Box 60698 

Palo Alto 



Stans 

Zip: 6925 


Fast Take-off AG 

Stans 


mondoBIOTECH Laboratories AG 

Vaduz 

Liechtenstein 


GlobalData 



CA 

Zip: 94306 

United States 

Tel: +1 650 8570760 

Fax: +1 650 8570805 

Alps Air AG 

Stans 


mondoBIOTECH US, Inc. 

NY 

United States 



Mondobiotech Holding AG - Financial Ratios 

Financial Ratios - Capital Market Ratios 

Mondobiotech Holding AG, Ratios based on current share price 

Key Ratios 09-Jun-2010 

Enterprise Value/Sales 

Enterprise Value/Total Assets 

Note: Above ratios are based on share price as of 09-Jun-2010, the above ratios are absolute numbers 


GlobalData 

Financial Ratios - Annual Ratios 

Mondobiotech Holding AG, Annual Ratios 

Key Ratios 

Equity Ratios 

Unit/Currency 2005 2006 2007 2008 2009 



342.36 

72.13 

EPS (Earnings per Share) CHF -2.02 -0.15 -0.73 -0.23 

Book Value per Share CHF 1.22 1.19 1.27 1.05 

Cash Value per Share 

Profitability Ratios 

CHF 0.28 0.20 0.26 0.09 

Operating Margin % -247.70 -11.69 -63.04 -88.13 

Net Profit Margin % -291.29 -10.82 -64.63 -88.91 

PBT Margin (Profit Before Tax) % -282.70 -11.90 -64.63 -88.97 

Return on Equity % -10.92 -2.49 -13.64 -21.53 

Return on Capital Employed % -9.24 -2.55 -13.24 -21.28 

Return on Assets % -9.41 -2.03 -12.26 -18.73 

Return on Fixed Assets % -10.16 -2.81 -16.64 -21.50 

Return on Working Capital 

Growth Ratios 

% -102.71 -27.45 -64.68 -2,073.46 

Sales Growth % 497.86 -1.90 -5.53 

EBITDA Growth % -456.03 

Working Capital Growth 

Cost Ratios 

% 5.62 124.43 -95.88 

Operating Costs (% of Sales) % 347.70 111.69 163.04 188.13 

Administration Costs (% of Sales) 

Liquidity Ratios 

% 150.12 34.71 22.83 41.51 

Current Ratio Absolute 1.58 1.57 2.92 1.07 

Quick Ratio Absolute 1.58 1.57 2.92 1.07 

Cash Ratio 

Leverage Ratios 

Absolute 1.48 0.99 1.90 0.56 

Debt to Equity Ratio % 0.59 5.85 0.75 0.58 

Net Debt to Equity % -22.55 -11.22 -19.68 -7.58 



Debt to Capital Ratio % 0.59 5.55 0.74 0.58 

Efficiency Ratios 

Asset Turnover Absolute 0.03 0.19 0.19 0.21 

Fixed Asset Turnover Absolute 2.76 2.88 9.37 2.37 

Current Asset Turnover Absolute 0.15 0.85 0.67 1.54 

Capital Employed Turnover Absolute 0.04 0.23 0.21 0.24 

Working Capital Turnover Absolute 0.41 2.35 1.03 23.53 

Revenue per Employee CHF 572,500 

Net Income per Employee CHF -509,000 

Capex to Sales % 19.15 2.03 5.67 42.02 

R&D to Sales % 180.24 54.18 115.15 146.62 


GlobalData 

Financial Ratios - Interim Ratios 

Mondobiotech Holding AG, Interim Ratios 

Key Ratios Unit/Currency Dec-2008 Jun-2009 Sep-2009 Dec-2009 

Interim EPS (Earnings per Share) CHF -0.18 -0.08 -0.06 -0.08 

Book Value per Share CHF 1.20 1.14 1.05 

Operating Margin % -61.43 -48.89 -81.96 -304.27 

Net Profit Margin % -63.89 -49.45 -83.11 -305.10 

PBT Margin (Profit Before Tax) % -63.89 -49.45 -83.11 -305.61 

Operating Costs (% of Sales) % 161.43 148.89 181.96 404.27 

Administration Costs (% of Sales) % 26.50 32.58 28.06 122.74 

Current Ratio Absolute 1.59 1.49 0.70 

Quick Ratio Absolute 1.59 1.49 0.70 

Debt to Equity Ratio % 0.71 0.59 0.58 

Net Debt to Equity % -11.12 -11.07 -7.58 

Debt to Capital Ratio % 0.70 0.59 0.58 


GlobalData 





Financial Ratios - Ratio Charts 

Mondobiotech Holding AG, Ratio Charts 

EPS Operating Margin 

Return on Equity Return on Assets 

Debt to Equity Ratio Current Ratio 


GlobalData 





Appendix 

The data and analysis within this report is driven by Global Markets & Companies. 

Global Markets & Companies gives you key information to drive sales, investment and deal making activity in 

your business. 

Our coverage includes 130,000+ reports on 115,000+ companies (including 65,000+ private) across 200+ 

countries and 29 industries. The key industries include Alternative Energy, Construction, Oil & Gas, Clean 

Technology, Technology and Telecommunication, Healthcare, Power, Financial Services, Retail & Consumer 

Packaged Goods and Transport. 

For more information or to receive a free demo of the services visit 

http://www.global-markets-companies.com/RequestforDemonstration.aspx 

Methodology 

GlobalData company reports are based on a core set of research techniques which ensure the best possible 

level of quality and accuracy of data. The key sources used include: 

• Company Websites 

• Company Annual Reports 

• SEC Filings 

• Press Releases 

• Proprietary Databases 

Currency Codes 

Currency Code Currency 

CHF Swiss Francs 

GlobalData 

Ratio Definitions 

Capital Market Ratios 

Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing 

stock. 

Price/Earnings Ratio 

(P/E) 

Enterprise 

Value/Earnings 

before Interest, Tax, 

Depreciation & 

Amortization 

(EV/EBITDA) 

Enterprise 

Value/Sales 

Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual 

income earned per share. It is a financial ratio used for valuation: a higher P/E ratio 

means that investors are paying more for each unit of income, so the stock is more 

expensive compared to one with lower P/E ratio. A high P/E suggests that investors are 

expecting higher earnings growth in the future compared to companies with a lower P/E. 

Price per share is as of previous business close, and EPS is from latest annual report. 

Calculation: Price per Share / Earnings per Share 

Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in 

parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA 

over the PE ratio is that it is unaffected by a company's capital structure. It compares the 

value of a business, free of debt, to earnings before interest. Price per share is as of 

previous business close, and shares outstanding last reported. Other items are from 

latest annual report. 

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net 

Income + Interest + Tax + Depreciation + Amortization) 

Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to 

buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because 

market capitalization does not take into account the amount of debt a company has, 

which needs to be paid back at some point. Price per share is as of previous business 

close, and shares outstanding last reported. Other items are from latest annual report. 





Enterprise 

Value/Operating 

Profit 

Enterprise 

Value/Total Assets 

Dividend Yield 

GlobalData 

Equity Ratios 

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales 

Enterprise Value/Operating Profit measures the company's enterprise value to the 

operating profit. Price per share is as of previous business close, and shares outstanding 

last reported. Other items are from latest annual report. 

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / 

Operating Income 

Enterprise Value/Total Assets measures the company's enterprise value to the total 

assets. Price per share is as of previous business close, and shares outstanding last 

reported. Other items are from latest annual report. 

Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total 

Assets 

These ratios are based on per share value. 

Earnings per Share 

(EPS) 

Dividend per Share 

Dividend Cover 

Book Value per Share 

Cash Value per Share 

GlobalData 

Profitability Ratios 

Dividend Yield shows how much a company pays out in dividends each year relative to 

its share price. In the absence of any capital gains, the dividend yield is the return on 

investment for a stock. 

Calculation: Annual Dividend per Share / Price per Share 

Earnings per share (EPS) is the portion of a company's profit allocated to each 

outstanding share of common stock. EPS serves as an indicator of a company's 

profitability. 

Calculation: Net Income / Weighted Average Shares 

Dividend is the distribution of a portion of a company's earnings, decided by the board of 

directors, to a class of its shareholders. 

Dividend cover is the ratio of company's earnings (net income) over the dividend paid to 

shareholders. 

Calculation: Earnings per share / Dividend per share 

Book Value per Share measure used by owners of common shares in a firm to determine 

the level of safety associated with each individual share after all debts are paid 

accordingly. 

Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares 

Cash Value per Share is a measure of a company's cash (cash & equivalents on the 

balance sheet) that is determined by dividing cash & equivalents by the total shares 

outstanding. 

Calculation: Cash & equivalents / Outstanding Shares 

Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated 

or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same 

ratio from a previous period is indicative that the company is doing well. 

Gross Margin 

Gross margin is the amount of contribution to the business enterprise, after paying for 

direct-fixed and direct-variable unit costs. 

Calculation: {(Revenue-Cost of revenue) / Revenue}*100 





Operating Margin 

Net Profit Margin 

Profit Markup 

PBIT Margin (Profit 

Before Interest & Tax) 

PBT Margin (Profit 

Before Tax) 

Return on Equity 

Return on Capital 

Employed 

Return on Assets 

Return on Fixed 

Assets 

Return on Working 

Capital 

GlobalData 

Cost Ratios 

Operating Margin is a ratio used to measure a company's pricing strategy and operating 

efficiency. 

Calculation: (Operating Income / Revenues) *100 

Net Profit Margin is the ratio of net profits to revenues for a company or business 

segment - that shows how much of each dollar earned by the company is translated into 

profits. 

Calculation: (Net Profit / Revenues) *100 

Profit Markup measures the company's gross profitability, as compared to the cost of 

revenue. 

Calculation: Gross Income / Cost of Revenue 

Profit Before Interest & Tax Margin shows the profitability of the company before interest 

expense & taxation. 

Calculation: {(Net Profit+Interest+Tax) / Revenue} *100 

Profit Before Tax Margin measures the pre-tax income over revenues. 

Calculation: {Income Before Tax / Revenues} *100 

Return on Equity measures the rate of return on the ownership interest (shareholders' 

equity) of the common stock owners. 

Calculation: (Net Income / Shareholders Equity)*100 

Return on Capital Employed is a ratio that indicates the efficiency and profitability of a 

company's capital investments. ROCE should always be higher than the rate at 

which the company borrows; otherwise any increase in borrowing will reduce 

shareholders' earnings. 

Calculation: EBIT / (Total Assets – Current Liabilities)*100 

Return on Assets is an indicator of how profitable a company is relative to its total assets, 

the ratio measures how efficient management is at using its assets to generate earnings. 

Calculation: (Net Income / Total Assets)*100 

Return on Fixed Assets measures the company's profitability to its fixed assets (property, 

plant & equipment). 

Calculation: (Net Income / Fixed Assets) *100 

Return on Working Capital measures the company's profitability to its working capital. 

Calculation: (Net Income / Working Capital) *100 

Cost ratios help to understand the costs the company is incurring as a percentage of sales. 

Operating costs (% of 

Sales) 

Administration costs 

(% of Sales) 

Interest costs (% of 

Sales) 

GlobalData 

Operating costs as percentage of total revenues measures the operating costs that a 

company incurs compared to the revenues. 

Calculation: (Operating Expenses / Revenues) *100 

Administration costs as percentage of total revenue measures the selling, general and 

administrative expenses that a company incurs compared to the revenues. 

Calculation: (Administrative Expenses / Revenues) *100 

Interest costs as percentage of total revenues measures the interest expense that a 

company incurs compared to the revenues. 

Calculation: (Interest Expenses / Revenues) *100 





Liquidity Ratios 

Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, 

the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term 

debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when 

creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios 

to determine whether a company will be able to continue as a going concern. 

Current Ratio 

Current Ratio measures a company's ability to pay its short-term obligations. The ratio 

gives an idea of the company's ability to pay back its short-term liabilities (debt and 

payables) with its short-term assets (cash, inventory, receivables). The higher the current 

ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests 

that the company would be unable to pay off its obligations if they came due at that point. 

Calculation: Current Assets / Current Liabilities 

Quick Ratio 

Cash Ratio 

GlobalData 

Leverage Ratios 

Quick ratio measures a company's ability to meet its short-term obligations with its most 

liquid assets. 

Calculation: (Current Assets - Inventories) / Current Liabilities 

Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It 

only looks at the most liquid short-term assets of the company, which are those that can 

be most easily used to pay off current obligations. It also ignores inventory and 

receivables, as there are no assurances that these two accounts can be converted to 

cash in a timely matter to meet current liabilities. 

Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)} 

Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's 

methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but 

the main factors looked at include debt, equity, assets and interest expenses. 

Debt to Equity Ratio 

Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity 

ratio also depends on the industry in which the company operates. For example, capitalintensive 

industries tend to have a higher debt-equity ratio. 

Calculation: Total Liabilities / Shareholders Equity 

Debt to Capital Ratio 

Interest Coverage 

Ratio 

GlobalData 

Debt to capital ratio gives an idea of a company's financial structure, or how it is 

financing its operations, along with some insight into its financial strength. The higher the 

debt-to-capital ratio, the more debt the company has compared to its equity. This 

indicates to investors whether a company is more prone to using debt financing or equity 

financing. A company with high debt-to-capital ratios, compared to a general or industry 

average, may show weak financial strength because the cost of these debts may weigh 

on the company and increase its default risk. 

Calculation: {Total Debt / (Total assets - Current Liabilities)} 

Interest Coverage Ratio is used to determine how easily a company can pay interest on 

outstanding debt, calculated as earnings before interest & tax by interest expense. 

Calculation: EBIT / Interest Expense 





Efficiency Ratios 

Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at 

maximizing its use of resources. 

Fixed Asset Turnover 

Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to 

generate sales. A higher ratio indicates the business has less money tied up in fixed 

assets for each currency unit of sales revenue. A declining ratio may indicate that the 

business is over-invested in plant, equipment, or other fixed assets. 

Calculation: Net Sales / Fixed Assets 

Asset Turnover 

Current Asset 

Turnover 

Inventory Turnover 

Working Capital 

Turnover 

Capital Employed 

Turnover 

Capex to sales 

Net income per 

Employee 

Revenue per 

Employee 

Efficiency Ratio 

GlobalData 

Asset turnover ratio measures the efficiency of a company's use of its assets in 

generating sales revenue to the company. A higher asset turnover ratio shows that the 

company has been more effective in using its assets to generate revenues. 

Calculation: Net Sales / Total Assets 

Current Asset Turnover indicates how efficiently the business uses its current assets to 

generate sales. 

Calculation: Net Sales / Current Assets 

Inventory Turnover ratio shows how many times a company's inventory is sold and 

replaced over a period. A low turnover implies poor sales and, therefore, excess 

inventory. A high ratio implies either strong sales or ineffective buying. 

Calculation: Cost of Goods Sold / Inventory 

Working Capital Turnover is a measurement to compare the depletion of working capital 

to the generation of sales. This provides some useful information as to how effectively a 

company is using its working capital to generate sales. 

Calculation: Net Sales / Working Capital 

Capital employed turnover ratio measures the efficiency of a company's use of its equity 

in generating sales revenue to the company. 

Calculation: Net Sales / Shareholders Equity 

Capex to Sales ratio measures the company's expenditure (investments) on fixed and 

related assets' effectiveness when compared to the sales generated. 

Calculation: (Capital Expenditure / Sales) *100 

Net income per Employee looks at a company's net income in relation to the number of 

employees they have. Ideally, a company wants a higher profit per employee possible, 

as it denotes higher productivity. 

Calculation: Net Income / No. of Employees 

Revenue per Employee measures the average revenue generated per employee of a 

company. This ratio is most useful when compared against other companies in the same 

industry. Generally, a company seeks the highest revenue per employee. 

Calculation: Revenue / No. of Employees 

Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company 

is losing a larger percentage of its income to expenses. If the efficiency ratio is getting 

lower, it is good for the bank and its shareholders. 

Calculation: Non-interest expense / Total Interest Income 

Notes 

• Financial information of the company is taken from the most recently published annual reports or SEC 

filings 

• The financial and operational data reported for the company is as per the industry defined standards 

• Revenue converted to USD at average annual conversion rate as of fiscal year end 





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(RARE) - Financial and Strategic Analysis Review - Mondobiotech

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