In my opinion, global large-cap pharmacueticial stocks, including Pfizer , Novartis , Astrazenca , GlaxoSmithKline , Wyeth and Eli Lilly are currently substantially undervalued. These companies are currently paying out huge dividends and trading at sensible P/Es. Unlike their small-cap high-risk research counterparts, these blue-chip stocks represent strong, yet low risk growth. Why risk your money on an obscure new cure for bird-flu, from a dodgy one-man company, when you don't have to?
While sales of their products may be slowing in the OECD developed world, they are, in some cases, growing substantially in emerging markets, including the BRICs (Brazil, Russia, India and China). I believe that the large-cap pharma industry is likely to grow in the long term, and it's stock prices to climb substantially.
Good Luck,
~~~~Shane Halloran.
$58.75 (01/09/08)
