A healthy balance, this is industry focus.

It's December 9, 2015.

I'm your host Christine Hargis. You are listening to the

health care episode of Industry Focus. I've got Todd Campbell, one of our

Motley Fool health care contributors on the line and wanted to go no further before saying that yesterday

was Todd's birthday so happy birthday Todd. Thank you very much I'm a year

older and but I feel a year younger so I've got that going for me.

And a year wiser too that's how that works right?

You know.

So buckle up listeners we are digging into some pretty nitty gritty financials today.

Specifically, we want to talk about the balance sheet.

In my mind, you can split drug developers into two categories, those that are a little bit

more established and those that are not as much.

So our conversation today is really going to focus more on some of the more established companies,

but that means that a lot of what we're covering today is applicable across all of big pharma and pretty much

any company with a good established portfolio of drugs that has money coming in as opposed to some of these

tiny biotechs that we talk about where when you look at them you really want to focus on things like cash burn.

So that's a whole different story.

So before we get into any company specifics, what exactly is a balance sheet?

A balance sheet, you know, first of all, let me start by saying that most investors

tend to focus on the sexier numbers, revenue growth, EPS growth, and the balance

sheet sometimes gets forgotten.

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