Mylan Pharmaceuticals was named one of the top five companies of the Pharmaceutical Industry by Zacks Investment Research. The pharmaceutical companies were chosen based on their dept-to-equity ratio, which placed Mylan at 4.9x based on total debt of $5.2 billion.
The debt/equity ratio is a measurement of a company’s leverage, calculated by dividing short and long-term debt by common shareholders’ equity, usually using the data from the previous fiscal years.
Mylan develops, manufactures and markets generic pharmaceutical products, including a generic version of Keppra, a drug used to treat seizures and traumatic brain injuries. Generic versions of Keppra have come under fire recently because of claims the generic versions of the drug, made by Mylan and other pharmaceutical companies, may cause serious side effects and/or a return of previously controlled symptoms in patients who have had their seizures controlled with brand-name Keppra but switched to a generic version.
Other pharmaceutical companies listed among the top five include Nektar Therapeutics, with a debt/equity ratio of 2.28x based on total debt of $233.8 million; Valeant Pharmacuticals International, with a debt/equity ratio of 1.62x based on total debt of $600.6 million; Warner Chilcott, with a debt/ratio of 1.61x based on total debt of $3 billion, and Neostem, with a debt/equity ratio of 1.04 based on total debt of $25.7 million.