Big Pharma - All In
I had four of the top 10 big pharma operations rated bullish in CAPS. JNJ has been a long term 'core' selection and I was also bullish on ABT, NVS, and LLY (and have owned JNJ and NVS for some time).
But pharma just keeps getting cheaper as business pressures continue to mount. US healthcare reform, comparitive effectiveness/value modeling by reimbursers/ and most recently European austerity measures. The sector doesn't seem priced for any growth right now, and to be fair, probably won't have it either in the near term as some major patent expirations still loom.
After listening to a couple of the earlier quarterly calls from companies here, I'm now inclined to go bullish on the entire big pharma sector. It will be rocky, but with cheap prices and generous dividends, I just can't lay off any longer.
The list is here:
And contract pharma does a great job of summarizing the position and issues each companyis dealing with (click the individual company links for summaries).
So, big 10, I'm all in (and Roche, which moved off the pharma list to the biopharma list, I'd like you too if you had an ADR).
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