All of the big drug stocks are down today. JNJ just seems to be one of the leaders of the trend. Probably a reflection of the fact that the whole sector is overbought. In the period Augu-Oct, these stocks held up very well while everyone else was getting clobbered. In the absence of any concrete news, I think we're just seeing a bit of a breather.
I agree that 99 may be alittle tough. however, 98 was not so great eather and lookat the movement in the stock. dlg goes from a "top pick" to a " buy". what does that mean anyway. . i wonder what the jnj investors have been reading. except for Janssen, most of jnj "new" drugs have come from L& A activity. except if you consider line extensions new drugs. there arey many deals always being considered. the best thing about jnj is that it never stays pat. the company can change its focus and bottom line by acquistion. wonderful thing, that big barrel of cash and not blink an eye. we will probably see alot more L& A activity in JNJ over the next 3-5 years. do not discount 99. you never know what will come along or happen internaly to change the bottom line!
Has anyone factored in the loss of painkiller business when the two new arthritis drugs from Monsanto and Merck get approved? They expect $5,000,000,000 in sales and will probably take a big chunk out of Tylenol and Ibuprofen sales.
Tylenol is an allpurpose pain and fever med with far wider use than just arthritis. Ibuprofen is so inexpensive that many HMO's "encourage" their docs to try it as their first anti inflamatory. It's hard to get patients to change an effective drug. The new drugs will probably erode the markets for other highend anti inflamatories.
JNJ is now trading at its high average PE for the last 5 years. This stocks trades between the PE range of 22-33. And with only a growth rate of 11% , this stock was due for a correction. So it looks to me there isn't much upside left in this stock. Still a great company to own. Just a little to rich for my blood.