Schering-Plough Corp (SGP)

ddberg (96.22) Submitted: 4/02/08 3:55 PM : Start Price: $13.79 SGP Score: 46.43

Long-term outperform. Obviously news of the American College of Cardiology's study showing that SGP's revenue cow, cholesterol inhibitors Vytorin and Zetia, doesn't produce results all that much better than a cheap generic (and their recommendation that cheaper alternatives be prescribed before Vytorin and Zetia) hurts. Hence the stock's 50% haircut since the beginning of the year. But the company's pipeline is strong, with several potetional multi-billion-dollar drugs in the latter stages of development. That, plus all the cost cutting and restructuring the firm has done over the past few years, make me think that the long-term potential for market-beating returns (from this new $14 starting point) is a very prudent bet.

Report this Post Replies: 0 | Reply