If you're looking for a solid investment in this topsy-turvy market, and a stake in the pharma sector take a look at Novatris (NVS) and Baxter (BAX).
I've recently split the cash I was sitting on about 50-50 between the two. My reasons for going for this play:
* Both are pharmaceutical companies.
* Both have weathered the crisis better than most companies.
* Both are racing to release a vaccination to the swine flu, which has been declared a level 6 (highest) pandemic by the world health organization, which should create demand and some hype around those companies.
I think this is a safe place to park my money relative to this volatile market, and with a chance for nice solid returns.
what do you think?
I've recently split the cash I was sitting on about 50-50 between the two. My reasons for going for this play:
* Both are pharmaceutical companies.
* Both have weathered the crisis better than most companies.
* Both are racing to release a vaccination to the swine flu, which has been declared a level 6 (highest) pandemic by the world health organization, which should create demand and some hype around those companies.
I think this is a safe place to park my money relative to this volatile market, and with a chance for nice solid returns.
what do you think?
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2 Comments
Top 1%
maven100
Jun 23 2009 at 7:31AM (EST)
I like Healtcare for a trade last week..as we witnessed some rotation out of commodities...into HC...I like BAX..they will should some upside this qtr for the reason you mentioned..the swine flu vaccine being ordereed and stockpiled by every country. But, longer term, the rules for pharma have changed. The valuations are beginnning to reflect this...You really need to know the company relly well, their pipeline, their burn rate the status of their clinical trials, etc...I would stay away from Big pharma in general...
Top 1%
guliamo
Jun 23 2009 at 8:03AM (EST)
I agree with Maven and am particularly "worried" that Obama is planing a major re haul of healthcare. Seems to me like the first step in such a scenario would be to widen considerably the prescribing of Generic drugs, possibly even shorten patent no compete guarantees. This would send large Pharma's violently down and should be a concern to investors.
From a personal / social perspective I think a healthcare overhaul is long over due and government simply MUST make a decisive change. The thought that 50% of our nations citizens relate spraining an ankle to personal bankruptcy is a national disgrace and must be stopped.